Beyond the Supplier Diversity Business Case
For years, corporations have carved out a department, typically in their procurement or sourcing areas, to be the go-between for diverse suppliers and their company’s buyers. The companies who are the best at actually getting diverse suppliers into their ecosystem are the ones who’ve built the business case, so the top levels and even shareholders understand the value. The idea is that companies’ supplier diversity people are going to conferences and events to meet with certified diverse suppliers, whether they are women, minority, LGBTQ, military veterans, and identify those suppliers who could fill a buyer’s need. Many have a database they ask suppliers to sign up for, so they are in the “system.”
As a WBENC-certified WBE, we interface with many people in these roles, several are now good friends. From our conversations and observations, those who have the most success getting diverse suppliers into their organization are those whose fellow employees’ performance are measured in use of diverse suppliers. And if they are being measured, then there is probably a business case that aligns with a company’s objectives. So, they can check that box on their performance review and also feel good that it’s the “right thing to do.”
However, once a company gets a diverse supplier that “checks the box” there is little incentive to take a risk to consider other diverse suppliers, especially if there are established non-diverse suppliers in place who are performing. And that’s understandable right? “What’s the reward if I’ve already met that objective on my performance?”
Well, it’s gonna be a mindset shift. You can’t talk about features and benefits. You need to reach both hearts and minds through storytelling.
These diverse suppliers are cornerstones in their communities. When they succeed, they can employ more people, provide opportunities for upward mobility for their employees and their suppliers and spend more money in their communities. It’s all connected. And this isn’t just theory. It is happening. There are stories of hope, rejection, dejection, recovery and celebration that can be told, but must be sought out. And it is an art to tell them in the way that touches the hearts and minds of those who need to take the risk in contracting with a new diverse supplier.
And these stories are likely to reach those who aren’t currently direct buyers but make some buying decisions and may do more in the future. A story has the potential to connect a person’s values and their memory because emotion is at the core of the story. And if the up-and-coming leaders of an organization are touched by the impact of the story, the future success for supplier diversity grows.
In 2022, the Women’s Business Enterprise National Council celebrates 25 years. To learn more about Women Business Enterprise certification visit WBENC.