THE SUPPLIER DIVERSITY INSTITUTE Houston, TX (August 27 29, 2012) Generating Supplier Diversity in the Academic Community

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1 THE SUPPLIER DIVERSITY INSTITUTE Houston, TX (August 27 29, 2012) Generating Supplier Diversity in the Academic Community 1

PROCUREMENT RESOURCES, INC. ATLANTA, GA LOS ANGELES, CA WASHINGTON, DC PHONE (770) 631-4606 MOBILE (678) 938-2727 rwllms@comcast.

2 PROCUREMENT RESOURCES, INC. ATLANTA, GA LOS ANGELES, CA WASHINGTON, DC PHONE (770) MOBILE (678) ABOUT THE CONFERENCE FACILITATOR Generating Supplier Diversity in the Academic Community Reginald Williams Conference Facilitator You ve either seen or heard of Reggie Williams if you re involved in the field of Supplier Diversity, a term he coined in In demand as a leading Consultant to corporate management, government and in academic settings, he appears on national PBS television and in many of the well known trade journals. He has written 2 books that are the defining reference on business diversity: DOING BUSINESS WITH MINORITY VENDORS and 2 nd TIER MINORITY PURCHASING: Effective Strategies in Supplier Diversity. He is a Visiting Associate Professor of Public Policy at Morgan State University and serves as Keynote Presenter for many of the nation s leading Conferences on supplier diversity. As a Facilitator, he has outstanding platform skills with an active, up-tempo, engaging style. He s especially known for stimulating excitement and participation in his presentations on Business Diversity. Reggie holds the Masters Degree in Urban Affairs from Temple University and the Bachelors Degree in Organizational Development from Rutgers University. Based in Atlanta, Georgia, his company, Procurement Resources boasts an enviable national track record of success working with America s leading corporations, government agencies and academic Institutions, including: California State University System-wide, IBM, The University of Washington, Duke University, ISM, Delta Air Lines, Emory University, AT&T, NIGP, Prince George s County, Montgomery County College, Marriott, the Commonwealth of Pennsylvania, Hewlett-Packard, Coca-Cola, Johns Hopkins University, NASA, the City of Baltimore and Microsoft. His company s specialized expertise is focused solely on helping organizations to effectively execute supplier diversity strategies. 2

3 Generating Supplier Diversity in the Academic Community S Y N O P S I S... (Facilitator s Presentation) OVERVIEW: The State of Diversity in Academic Settings About the Institute and What We Hope to Accomplish A Definition of Diversity The 3 Dimensions of Diversity The Principles of Supplier Diversity Key Challenges for Supplier Diversity Professionals Executing your Supplier Diversity Strategy SESSION 6: Corporate Responsibility in Sustainability A Definition of Sustainability as an Element of Supply Chain Management Good Stewardship of the Environment Sustainability as a Criterion of Best Value Linking Sustainability to your Diverse Supplier Program Action Planning / Q & A / Professional Networking CONFERENCE SUMMARY: Lessons Learned Recap of Today s Learning: - Organizational Issues and Solutions - Behavioral Issues and Solutions - Where Do We Go From Here: Networking Discussion 3

4 Generating Supplier Diversity in the Academic Community The Premise: The challenge facing supplier diversity professionals in educational settings centers on how to link it with the Institution s mission. This entails a carefully constructed strategy to ensure it is perceived as an important element of its community stewardship in support of the students and the constituents. Diversity in higher education cannot be limited to the admissions process or even workforce issues. Rather, it is inextricably linked to how the Institution embraces the multicultural constituency that it serves and how it ensures opportunity and competitive access in its business relations. Higher education has a public responsibility to assert leadership on matters of inclusion and full participation. This can best be demonstrated by establishing strategic business partnerships with diverse business partners and leveraging inclusion that extends business opportunities to all of the elements of its constituency. One of the most important elements in this group are emerging small businesses and many of these are minority and women-owned firms. The role of NAEP is to underscore the range of strategic options that are currently in place offering replicative value in generating viable and successful supplier diversity programs at member institutions. The goal of the Institute, therefore, is to review best practices and strategic options that add value to your Institution s business relationships with these emerging small business enterprise. 4

5 Best Practices in Educational Settings The Principles of Supplier Diversity To leverage the procurement power of the institution with the goal of creating a pool of suppliers and business partners that are highly representative of our customer, our students and our constituents. To aggressively advance the initiative of equal economic opportunity through pro-active and innovative measures aimed at ensuring competitive opportunities for qualified minority, women, and veteran-owned contractors and suppliers. To ensure that maximum opportunity is extended in soliciting bids and quotes from a diverse pool of suppliers. To hold all staff accountable in meeting the Institution s expectations for high performance by demonstrating our commitment to business opportunity. To enhance the academic mission by aligning our core values and business objectives with our students and our constituents. 5

6 PROCUREMENT RESOURCES, INC. ATLANTA, GA LOS ANGELES, CA WASHINGTON, DC PHONE (770) MOBILE (678) D I V E R S I T Y: Diversity in an academic setting is attained by: A D E F I N I T I O N The Three Dimensions of Diversity Reginald Williams - Consultant, Corporate Diversity a. Demonstrating leadership that promotes and encourages the acceptance of diversity by the total organization. b. Ensuring that the team is broadly inclusive in its make-up and culture. c. Creating a corporate climate that values differences as positive enhancement to the institution s mission. WORKFORCE / STAFF DIVERSITY Workforce Diversity means having an organization whose workforce (employee profile) is highly diverse. It means valuing and respecting gender differences, multicultural differences, generational differences, racial diversity, individuality, differences in viewpoint and the unique contributions of all members of the Team in support of the Institution s mission. Workforce Diversity is a positive asset for growth and success. To be effective, it must be viewed as part of the corporate value system and embraced by the academic community. Unlike affirmative action, which represents regulatory measures, workforce diversity manifests itself in voluntary, selfinitiated actions with no regulatory or legal mandate. SUPPLIER DIVERSITY Supplier Diversity is the condition of creating a base of suppliers and contractors that are highly representative of the students and the community served by the Institution. Supplier Diversity takes root as part of the supply management infrastructure as it seeks to create an inclusive vendor pool for all contracts and purchases, using various pro-active strategies to promote broad, competitive participation. CUSTOMER DIVERSITY Customer Diversity means to identify the expectations of the customer (the students that make-up the academic constituency), and accommodating those expectations in a way that will enhance the sense of community. It requires the institution s sensitivity and understanding for differences in backgrounds and cultural needs of the student body, with corresponding accommodation to ensure satisfaction to the best of the organization s ability. 6

7 THE SUPPLIER DIVERSITY QUIZ (Indicate correct answer. Circle or check where appropriate) (1) Affirmative Procurement means the same thing as Equal Procurement Opportunity. TRUE FALSE (2) Your Institution must set quotas with staff in its Supplier Diversity program. TRUE FALSE (3) Circle the primary issue affecting supplier diversity within your Institution that is most often selected by staff as a critical concern and impediment. (Circle only one.) (a) The prejudices and biases of Buyers and Staff. (b) Non-capable Minority Suppliers. (c) Sourcing for MWBEs. (d) Misunderstanding of the Program. (e) Lack of interpersonal skills on the part of Procurement Staff. (f) Lack of marketing skills held by MWBEs. (g) Overly bureaucratic systems and procedures. (4) What is the primary role of the Supplier Diversity Staff Person? (Circle only one.) (a) To identify minority & women sources. (b) To serve as an advocate for minority and female interests. (c) To represent the company to outside interests. (d) To assure procurement equality. (e) To protect the company from potential litigation. (5) This program requires that we treat all suppliers the same. Yes No (6) Should a Minority Supplier inform you that he/she represents a Minority-owned company? Yes No 7

8 (7) (Case Study): What do you want me to do purchase the educational supplies we need, or look for minority suppliers? Take your pick! If this question was raised by a member of your team, how would you answer it? (8) Although responsibility is shared, who has the major responsibility for assuring that this program will really work? (Circle Two) (a) The Director of Supplier Diversity (b) The Procurement Manager (c) Buyers / Staff (d) Prime Suppliers and Contractors (e) Minority Suppliers and Contractors (f) Chancellor / President / CEO (9) Name the four major groups that constitute the protected class called minorities. (1) (2) (3) (4) (10) List any two of the three criteria that are considered in determining whether a business is a bonafide minority enterprise. (1) (2) (3) YOUR SCORE 9 or 10 = Excellent, Superior 8 = Good, Above Average 7 = Average, Passing Knowledge Level Below 7 = Knowledge Deficiency; Room For Improvement 8

9 The Typical Supplier Diversity Dilemma in Educational Settings Case Study# 101: Problem Solving: Becoming Proactive Issue: You have just completed NAEP s supplier diversity training. One of your colleagues, who did not attend the training, made the following statement to you: I have several suppliers and contractors, none of which is minority. They all perform well for me, and, I ve used them for a long period of time. I ve got a lot of time invested in these vendors and I trust them. Why should we start all over? In the training session you learned that you have responsibility as an advocate to be an active participant in the supplier diversity solution. How will you respond to your colleague? Solution: 1. What is your primary concern? 2. What will you do? 3. Why? 4. How will you do it? 5. Who will do it? 9

10 The Typical Supplier Diversity Dilemma in Educational Settings Case Study# 102: Case Study: Problem Solving: The Mindset Issue: At a recent staff meeting your Manager discussed the organization s supplier diversity strategy and expressed her support for inclusiveness in the pool of contractors and suppliers used by the department. The staff was impressed with her position, but one of your colleagues responded: I believe we should all be color blind. We should just hire the best qualified. Your Manager was caught off guard with this assertion and she couldn t immediately respond. So she ended the discussion, saying we would discuss the matter again at the next staff meeting. After the meeting ended, she called you into her office to meet with her, because you had just completed supplier diversity training with Reggie Williams and could perhaps coach her on the appropriate response to this comment. Solution: 1. What is your primary concern? 2. What will you do? 3. Why? 4. How will you do it? 5. Who will do it? 10

11 Action Planning BASED ON WHAT YOU HAVE LEARNED TODAY, YOUR ORGANIZATION HAS MADE A COMMITMENT TO EXPAND BUSINESS WITH QUALIFIED MINORITY AND WOMEN OWNED FIRMS. WHAT SPECIFICALLY HAVE YOU LEARNED TODAY THAT WILL HELP YOUR ORGANIZATION ACHIEVE THAT MISSION? 11

12 KEY BENCHMARKS: A Self-Assessment Tool for Supplier Diversity (Best Practices) 1. Does the organization have a written Supplier Diversity Policy requiring pro-active measures to ensure inclusion? Yes No 2. Does this policy originate at the senior management level and have they been briefed on implementation plans? Yes No 3. Is it posted and disseminated throughout the organization? Yes No 4. Is the responsibility for Supplier Diversity shared throughout all of the core functions of the organization. Yes No 5. Has the organization established a process for conflict resolution regarding issues of Supplier Diversity? Yes No 6. Have staff been trained and oriented on Supplier Diversity policies and procedures? Yes No 7. Does the organization have a designated Supplier Diversity Officer? Yes No 8. Does the organization have a cross-functional team to ensure uniform participation throughout the system on matters of Supplier Diversity? Yes No 9. Is there a mechanism for generating dialogue and feedback from minority and women suppliers? Yes No 10. Does the performance appraisal process include Supplier Diversity as a performance consideration? Yes No 11. Is there an on-going monitoring and reporting process to the Board & Senior Management on this initiative? Yes No 12. Does the organization regularly participate in programs with national minority and women s groups? Yes No 13. Do the Procurement and Administrative functions play an active, daily role in the Supplier Diversity initiative? Yes No 14. Is there a formalized process to ensure competitive access for minority and women owned companies? Yes No 12

13 15. What is the level of MWBE spend as a percentage of total spend? (estimate only) 16. In your opinion, which of these key issues represents the primary obstacle to your success under the Supplier Diversity initiative? (circle only one) A. Issues of mindset, interpersonal relations, lack of staff support B. Issues of leadership, direction, unclear management expectations C. Issues of infrastructure, systems, procedures, resources 17. Is Supplier Diversity included in your Institution s core business strategy? Yes No 18. In your opinion is Supplier Diversity a visible and well understood part of your organization s corporate culture? Yes No 19. Who is your organization s Chief Diversity Officer? (circle one) A. (answer with name) B. I don t know 20. Does information on Supplier Diversity appear on the organization s website and in the periodicals published by the organization? Yes No I Don t Know 13

Penn State Outreach Strategic Plan for Diversity

Penn State Outreach Strategic Plan for Diversity 2004-2009 The mission of Penn State Outreach is to increase access to Penn State s educational resources through linking the expertise of faculty in the