Читать книгу Supplier Diversity For Dummies - Kathey K. Porter - Страница 16
Looking at reasons supplier diversity is still necessary
ОглавлениеObviously, as a supplier diversity consultant and author, I have definite opinions around this subject. However, this section isn’t a declaration on how I feel. My leanings are based on factual and anecdotal observations that support the need for supplier diversity.
When goals are attached to projects, utilization improves.Goals in this context are percentages established on projects administered by public agencies — that is, local/state governments, higher education institutions, K-12 schools, and the federal government. Conducting disparity studies can help justify the utilization of goals. A disparity study is an analysis that examines whether differences exist between the percentage of dollars that minority- and women-owned businesses received in contracts during a specific period and the percentage of dollars that those businesses would be expected to receive based on their availability to perform those contracts. It may also look at other factors, such as legal considerations around creating programs for these businesses, conditions in the local marketplace for these businesses, contracting practices, and business assistance programs currently in place.Based on the results of such a study, organizations can establish goals, usually on their subcontracting opportunities, with the hopes of improving the utilization of diverse businesses. For example, a project can have a goal of 30 percent, which means that a prime contractor (a contractor who has a direct contract with an organization) must ensure that at least 30 percent of the total contract value will be spent with small or diverse businesses. If it can’t do so, it must provide a valid reason. In my experience, prime vendors often overindex on the utilization of small and diverse business spend when a goal is attached — that is, they spend more than 30 percent (or whatever the goal is) because they want to maintain a good relationship with a client and to report this number for future project pursuits. With a robust program, a prime vendor may be penalized for not meeting goals and risk winning future contract opportunities with a client.
When tracking, compliance, and reporting measures are in place, utilization improves. Accountability measures such as project tracking, contract compliance, and reporting let project teams and supplier diversity monitor the progress of a project in somewhat real time and take action if the prime contractor looks like it’s not going to be able to fulfill a goal. This approach is a more collaborative one where supplier diversity can provide support to help connect the prime contractor to small and diverse businesses.
When organizations or individuals think their livelihood may be in jeopardy, they change their behavior. This concept is a relatively new one that many organizations are embracing. According to supplier.io, many of the Top 50 Companies for Diversity (as recognized by DiversityInc magazine) are placing more emphasis on achieving diversity/supplier diversity goals and tying executive compensation to the effort. This move not only provides additional incentive to hit supplier diversity goals but also reinforces the importance of diversity as a core value in the company.