Supplier Diversity For Dummies

Supplier Diversity For Dummies
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Extend the principles of diversity and inclusion to your company's suppliers Many people are familiar with the importance of ensuring and advancing inclusion, equity, and diversity amongst their employees and managers. But do your efforts include supplier diversity—an equally as important and essential part of any holistic diversity effort? In Supplier Diversity For Dummies, nationally recognized small business strategist and economic inclusion and supplier diversity expert Kathey Porter delivers an empowering and informative guide to implementing this integral part of any robust inclusion initiative: supplier diversity. You'll understand the relevance of supplier diversity and why it's important to encourage equal opportunity for diverse suppliers and businesses owned and managed by underrepresented groups. In this book, you'll also find: The answers to your most pressing questions about how to build a coherent and sustainable supplier diversity program Ways to contribute more fully to your company's diversity and inclusion functions Strategies to position supplier diversity as a central function in your organization Perfect for company buyers, purchasing and procurement professionals, material management executives, strategic souring professionals and supplier diversity practitioners, Supplier Diversity For Dummies is a must-read resource for supply chain professionals, diversity and inclusion leaders and anyone looking to increase their proficiency in supplier diversity, improve supply chain inclusivity and increase their social impact.

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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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