encouragement at the end.
Getting Started with SDM
Many supplier diversity programs start with the end goal in mind, approaching it as a destination rather than a long-term organizational process. This method isn’t necessarily the wrong way to think about supplier diversity, but it may not allow you to identify the gaps because you aren’t deconstructing the process and considering every step needed to achieve your goal of adding value. Having properly designed business processes in place is the key to efficiency, scalability, and competitiveness and ensures that the program will be a vital part of the organization for years to come. This area is where the SDM model is an effective tool. You can read more about the model in the earlier section “Introducing the Supplier Diversity Management (SDM) Model.”
The SDM model is a guide that helps you identify the key functions at every phase of the process and map out the activities you should incorporate based on your organizational culture. It’s not a cookie-cutter approach. Rather, it allows you to consider those details that are unique to your organization and adapt your program activities to those that allow you to achieve your outcomes. In this model (refer to Figure 3-3), you see how each phase impacts the next phase. Starting at the left, organizational stakeholders (external process) drive internal activities (internal process) which then impacts diverse businesses (supplier development process). These activities work collectively to create value.
The following sections offer a few tips to consider as you begin using the SDM model in your organization.
Phase 1: Internal efforts
Internal efforts include a focus on the 4 P’s — policies, procedures, processes, and people — your in-reach efforts, and your programs. The following are some key questions to consider:
Can we create a map for our supplier diversity process?
How comprehensive do we want our efforts to be?
Are we willing to devote necessary resources to develop this process?
How do we view/value supplier diversity?
What are our expected outcomes? What value do we want to add?
Phase 2: External efforts
External efforts focus on collaboration. Here are a few questions to ask yourself:
What resources do we need for support?
What community resources are available — that is, large businesses, industry experts, other business development agencies, and so on?
How will they add value to our program?
SDM — BRINGING THE RESULTS TO STRUGGLING ORGANIZATIONS
When organizations come to me about their programs, it’s usually because they’re not getting the results they’d hoped for. They have the willingness and the elements of what can be a strong program, but it’s still not coming together. By deconstructing their program using the SDM model, they can readily see the gaps. For example, they might be experiencing challenges in finding small and diverse businesses. They may have the requisite internal elements, but they haven’t incorporated the supplier engagement and development program to get firms into their pipeline. Or they may be having issues increasing departmental utilization with small and diverse businesses. This usually indicates that their internal programs, specifically the 4 P’s, may need to be reviewed to ensure that each area has been addressed.
Phase 3: Supplier development
This last phase is about (wait for it) development. Keep the following in mind:
How much can we devote to supplier development?
How will we incorporate supplier development into our program?
How will supplier development fit into our program?
What happens after?
How do we keep businesses engaged?
Chapter 4
Distinguishing between Supplier Diversity and DEI
IN THIS CHAPTER
The global COVID-19 pandemic, polarizing politics, and social justice movements have made diversity, equity, and inclusion (DEI) a high-trending theme and one of the hottest topics in organizations today. You hear about it everywhere: on the news, in company press releases, and in everyday conversations. According to research by management consultancy Russell Reynolds Associates, the hiring of chief diversity officers for companies listed on the S&P 500 nearly tripled from December 2020 to March 2021.
That organizations have recommitted themselves to ensuring that their environments are diverse and inclusive is certainly great news. However, organizations must also remember that they can’t have a fully actualized diversity strategy if it doesn’t include all facets of diversity: the workforce and its suppliers — a side that is sometimes overlooked.
This chapter discusses the differences between supplier diversity and DEI, why they’re collaborative partners, and the pitfalls of combining the two.
Surveying the Programs’ Similar Names and Mission
Since the 20th century, groups have long advocated for equal and fair treatment in the workplace. If you do any research on when diversity became part of the conversation, you find that, like suppler diversity, it has had many iterations over the years to arrive where it is today.
Starting with diversity
