Supplier Diversity For Dummies
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Kathey K. Porter. Supplier Diversity For Dummies
Supplier Diversity For Dummies® To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Supplier Diversity For Dummies Cheat Sheet” in the Search box. Table of Contents
List of Tables
List of Illustrations
Guide
Pages
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Getting Started with Supplier Diversity
Understanding the Growing Demand for Supplier Diversity
Breaking Down What Supplier Diversity Is and Isn’t
What it is
What it’s not
Investigating Whether Supplier Diversity Is Still Necessary
Looking at reasons supplier diversity is still necessary
Considering what supplier diversity needs to do to stay relevant
Examining External Drivers Redefining Supplier Diversity
Growth of minority entrepreneurship
Demographic shifts: The changing face of the majority
Social activism/economic inclusion
Accountability to secondary stakeholders
Recognizing Why Organizations Are Recommitting to Supplier Diversity
Complex business challenges/strategic advantage
Increased focus on collaboration in the supply chain
Compliance with the law
Accountability to primary stakeholders
Corporate social responsibility/stewardship
Understanding the Foundation of Supplier Diversity
Looking at Where It All Began
Executive Order 10925 (1961): Established Committee on Equal Opportunity Employment
Executive Order 11246 (1965): Established Requirements for Non-discriminatory Practices
Executive Orders 11458 (1969) and 11625 (1971): Economic Entrepreneurial b Equality
Public Law 95-507 (1978)
Examining the Evolution of Supplier Diversity
MAYOR MAYNARD JACKSON AND SUPPLIER DIVERSITY IN ATLANTA, GEORGIA
Compliance with federal law (1969–1990)
The right thing to do (1990s–early 2000s)
Making the business case (2000s–present)
Pondering the Future of Supplier Diversity
Business and program globalization
Strategic advantage
Economic imperative
Supplier Diversity Management: A New Way of Thinking
Defining Supplier Diversity Management
Perusing Supplier Diversity Management as a Process
Introducing the Supplier Diversity Management (SDM) Model
The internal process
The external process
The supplier development process
Getting Started with SDM
Phase 1: Internal efforts
Phase 2: External efforts
SDM — BRINGING THE RESULTS TO STRUGGLING ORGANIZATIONS
Phase 3: Supplier development
Distinguishing between Supplier Diversity and DEI
Surveying the Programs’ Similar Names and Mission
Starting with diversity
Introducing inclusion
Expanding for equity
A NEW SENSE OF URGENCY: PUTTING THE FOCUS ON SUPPLIER DIVERSITY AFTER THE GLOBAL PANDEMIC
Diving into Their Different Audiences, Tactics, and Results
Customers/target audience
Tactics used
Measuring results
Becoming Collaborative Partners
Perusing the Pitfalls of Combining Supplier Diversity and DEI
Combining diversity efforts under one umbrella
The changing role of the Chief Diversity Officer
Changing the name of supplier diversity to “supplier diversity and inclusion”
Digging into Supplier Diversity within the Organization
Understanding the Role of the Supplier Diversity Professional
Surveying How Supplier Diversity Fits into the Organization
With supply chain/procurement
With facilities/construction
With diversity and inclusion
With senior leadership
With community relations
With other departments and organizational initiatives
Getting Involved in the Procurement Process — From Beginning to End
Forecasting upcoming opportunities
Reviewing and ensuring bid documents/RFPs are inclusive
Participating on selection/evaluation committees
Establishing the vendor onboarding process
Informing and preparing prospective diverse vendors
Tracking performance and utilization
Sourcing and advocating for small and diverse businesses
Mediation and conflict resolution
Anticipating Potential Conflicts and Identifying Resolutions
FIVE MODES OF RESOLVING CONFLICT FOR SUPPLIER DIVERSITY
Developing Internal (Organizational) Supplier Diversity Efforts
Gauging Your Organization’s Diversity Climate
Surveying Supplier Diversity and Organizational Change Management
Examining Your Organizational 4 P’s
Starting with your people
Reviewing your policy
THE SKINNY ON DISPARITY STUDIES
Establishing your process
Identifying your procedures
WHEN POLICIES AND PROCEDURES COLLIDE
Understanding the “Who-What-How” of Your Organizational Spend
Who makes buying decisions?
What does your organization buy?
How does your organization buy what it needs?
Assessing Your Organization’s Vendor Relationship Management (VRM)
Vendor onboarding
Connecting vendors to internal stakeholders
Examining the vendor payment process
Understanding Strategic Sourcing as Part of Your Readiness Assessment
Determining the Right Leadership Structure for Your Efforts
Consultant
Direct hire
Employee add-on function
Making the Case for Supplier Diversity
Aligning Supplier Diversity to Organizational Strategic Goals
Finding Value-Creating Opportunities
Communicating Value
Selling Your Supplier Diversity Story to Stakeholders
MAKING THE CASE BY ADDING VALUE
Building Support for Supplier Diversity Programs
Seeing How Supplier Diversity Touches Many Stakeholders
Finding Allies throughout Departments in Your Organization
Diversity, equity, and inclusion (DEI)
Working with procurement
Apprising community relations of your strategy
TOTAL COST OF OWNERSHIP AND STRATEGIC SOURCING
Informing employees and ERGs
Looping in those responsible for sustainability initiatives
Developing an In-Reach Program
Training
Communication
Engagement through advisory councils/task forces
Aligning Programs to Collaborator Objectives: Solving WIIFT
Identifying Common Barriers to Supplier Diversity
Identifying Common Organizational Barriers
Implicit biases
The status quo
Lift and shift mentality
Double duty/add-on function
Legacy data systems
HOW THE ERP MODEL BEGAN
Pinpointing Practitioner Barriers
Lack of clarity to carry out the mission
Inability to navigate the landscape
Unrealistic objectives for the organization or the community
Lack of the resources needed to successfully achieve objectives
No analytics/wrong metrics
Overcoming Barriers to Build a Successful Program
Creating an Effective Supplier Diversity Plan
Starting Out with the Principles of Supplier Diversity Planning
Eyeing Your Vision Statement
Clarifying Your Mission
Locking in Your O.A.R
Communicating your objectives
Defining your activities
Identifying your results (KPIs)
Putting the Plan Together
GETTING CREATIVE WITH SUPPLIER DIVERSITY PLANS
Supplier Development and Supplier Diversity
Creating an Environment that Puts Diverse Businesses First
Becoming the Champion for Diverse Businesses within Your Organization
Perusing supplier diversity’s key principles
Focusing on removing obstacles
Challenging the status quo
Fostering a Culture of Trust, Respect, and Transparency in Relationships
BUILDING BUSINESS RELATIONSHIPS ONE LEVEL AT A TIME
Building trust
Garnering respect
Cultivating transparency
Building Capacity
Getting a Handle on Capacity Building
Covering Capacity Building Tasks
Evaluating the Capacity of Businesses within Your Organization
Getting started
Measuring success
Developing to Build Capacity
OTHER AREAS TO INCLUDE IN CAPACITY BUILDING
Examining External (Community) Supplier Diversity Efforts
Highlighting the Stages of Supplier Diversity Programs
Determining Your Program Stage and Dealing with Common Challenges
Startup stage
Growth stage
Mature stage
Identifying the Right Activities for Each Stage
Startup stage activities
Growth stage activities
Mature stage activities
Cultivating Community Partners to Drive Supplier Diversity
Building Allies and Alliances through Collaborations and Partnerships
Using partnerships
Using collaborations
Reasons to consider partnerships or collaborations (or both)
Planning for Engagement
Finding the Right Community Partners: Local, State, Regional, and National
Local
State, regional, and national
Creating and Using Supplier Diversity Councils to Drive Efforts
Internal councils
External councils
Joint councils
SOME QUICK (AND FREE) WAYS TO BUILD A SMALL AND DIVERSE BUSINESS DATABASE
Using Technology and Compliance to Enhance Supplier Diversity
Telling the World About Your Supplier Diversity Efforts
Understanding Why Communication Is Crucial in Supplier Diversity
Developing a Supplier Diversity Communication Plan
DECIDING WHETHER TO OUTSOURCE YOUR COMMUNICATION PLAN
Establishing goals
Defining target audiences
Identifying key messages
Creating a tactical outreach plan
UTILIZING PUBLICATIONS THAT SPECIALIZE IN SUPPLIER DIVERSITY
Establishing Supplier Diversity Metrics, Benchmarks, and KPIs
Understanding the Importance of Metrics, Benchmarks, and KPIs
Establishing Metrics, Benchmarks, and KPIs
Metrics
Benchmarks
KPIs
Seeing How Software Can Help You Manage Your Program
Using Metrics to Tell Your Story
What’s your organization’s story?
What story are you telling?
Are your metrics getting in the way of the story?
Understanding Tier 2/Subcontracting Spend
Tracing the History of Subcontracting
Stepping through the Levels: Tier 1, Tier 2, and Beyond
Tier 1 suppliers
Tier 2 suppliers
Tier 3 suppliers
Tier 4 suppliers and below
Managing Subcontractors and Tiered Procurement
Influencing Your Prime Vendors to Use Diverse Suppliers
Knowing the Importance of Tracking and Utilizing Tier 2 Data
Getting a Grip on Goal Setting in Supplier Diversity
Aligning Supplier Diversity Goals with Procurement Strategies
Looking back at the purchasing department of yore
Working within the strategic sourcing model: It’s all about the bottom line
Helping diverse suppliers become more competitive: A win for everyone
Setting Goals with a Disparity Study
DISPARITY STUDIES IN ACTION
Setting Goals without a Disparity Study
Meeting Utilization Goals versus Adding Value
Tracking, Measuring, and Reporting Metrics in Supplier Diversity: It’s All in the Numbers
Tracking Diverse Spend
Using certifications to identify diverse businesses
Identifying diverse spend based on accounts payable reporting
Measuring the Impact/Success of Supplier Diversity Efforts
Looking at economic impact
CONVINCING SUPPLIERS TO GET CERTIFIED
Knowing the importance of context in reporting total spend
Being Aware of Problems in Reporting
Garbage in, garbage out
Counting “self-certified” suppliers
Changes at the top that affect eligibility
Industry-specific reporting issues
Construction
Hospitals
Government
Reporting What Matters: Creating an At-a-Glance Dashboard
Reporting to Senior Leaders and the Community
Keeping senior leaders informed
Presenting to the public and other supplier diversity professionals
The general public
Supplier diversity professionals
Building a Career in Supplier Diversity
Becoming a Supplier Diversity Professional
ADVICE FOR NEW PROFESSIONALS INTERESTED IN SUPPLIER DIVERSITY
Understanding Job Titles and Job Descriptions
Job titles
Job description
Looking at Department Structures and Job Functions
Department structures
Job functions
Supplier Diversity by Any Other Name: Examining Industry Terminology
Federal government
The public sector
Corporations
Landing a Job in Supplier Diversity
Already working in an organization
Applying for a new position
Transitioning into a new career
Supplier Diversity Certifications and Continuing Education
Checking Out Certification Programs
Certified Professional in Supplier Diversity (CPSD)
Certified Supplier Diversity Professional (CSDP)
Compliance administrator certifications
Staying Current with Continuing Education
Alliance of Supplier Diversity Professionals
American Contract Compliance Association
Institute for Supply Management
National Minority Supplier Development Council
Supplier Diversity Training Institute
National Association of Educational Procurement Supplier Diversity Training Institute
Regional/industry specific programs
National conferences
Digging into Degrees, Diplomas, and Other Education Options
Undergraduate degrees
Graduate degrees
Online education
Udemy
Coursera
LinkedIn Learning
YouTube
The Part of Tens
Nearly Ten Ways to Become an Effective Supplier Diversity Leader
Be the Champion within Your Organization
Be an Influencer
Be an Advocate
Be a Collaborator
Know How Your Organization Works
Know What to Ask For
Know the Needs of Your Business Community
Focus on Impact, Not Activities
Focus on Driving Results
Ten (Plus One) Ways to Create a World-Class Supplier Diversity Program
Connect Program Deliverables to Organizational Goals
Develop Your 4 P’s to Be Small and Diverse Business-Centric
Focus on Connecting Businesses to Opportunities
Establish Your Place in Your Community’s Entrepreneurial Ecosystem
Become Self-Sustaining: From Limiting to Limitless
Invest in Analytics to Help Manage Your Program
Cultivate a Supplier Development Program Using M.O.D.E
Don’t Be Afraid to Try New Programs
Put a Compliance Program in Place
Get Your Prime/Tier 1 Partners Involved
Get out from Behind That Desk
Ten Myths about Supplier Diversity
Supplier Diversity Will Increase How Much We Pay for Things
Supplier Diversity Doesn’t Add Value Because It Doesn’t Generate Revenue
Supplier Diversity Is Just a Feel-Good Initiative
Supplier Diversity Is Too Confusing
Supplier Diversity Doesn’t Impact Our Bottom Line
Supplier Diversity and DEI Are Close Enough
Our Name Alone Will Deliver Program Results
Anybody Can Lead This Effort — Any Body
We’re Too Busy to Devote Energy to Supplier Diversity
Supplier Diversity Will Lower Our Standards
Index. A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Y
About the Author
Dedication
Author’s Acknowledgments
WILEY END USER LICENSE AGREEMENT
Отрывок из книги
Welcome to Supplier Diversity For Dummies. As I embarked on this project, the timing for this book couldn’t have been more perfect given the predictions about entrepreneurship, demographic growth, and the workplace of the future. It has been an honor to write the first-ever book of this type in this series. I’m Kathey K. Porter, MBA, MSE, CPSD, and I’ve held a variety of leadership roles in supplier diversity and now as a supplier diversity consultant with a minority-, woman-, and veteran-owned business. My experiences (both professional and personal) have prepared me to create this work, and I’m excited to be able to share with you what I’ve learned along the way.
Supplier Diversity For Dummies is your one-stop resource guide to get a comprehensive understanding of what supplier diversity is all about, how it contributes to an organization’s success, what your role is as a leader, and how to implement supplier diversity in every area of your organization. In this book, I explain everything from the common terminology to the continued evolution of supplier diversity to how outside factors influence your organizational policies. I also cover strategies for tasks like these:
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FIGURE 1-1: Supplier diversity title frequency.
Supplier diversity is once again experiencing a resurgence in organizations. In the following sections, I take a look at some of the societal factors driving this resurgence.
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