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Third, black and minority owned businesses must strengthen their
strategic view. The most common measures of our success in business are
how many employees we have, how much revenue we generate, and how fast
we are growing. Although these are important measures, they fail to
capture the factors that will lead to long-term success in supplier
diversity. Strategic measures to consider are things like how your
business is positioned in your industry. How much more able to compete
is your business now than it was a year ago? How strong is your
management team and how well are they developing? What new levels of
technical expertise and capacity have you developed? Without a
strengthened strategic view you may get contracts but you will fall to
achieve sustained success. Without a strong strategic view your
business will always be marginal and easily replaceable as a supplier.
You may get a contract or two because you are a minority business but
you will not have sustainable success until you strengthen your
strategic view.The fourth and final element of success in the Supplier Diversity Industry is establishing actionable relationships. Actionable relationships are those relationships with whom you have influence and trust; Those relationship on which you can depend; The relationships you have with people who are both willing and able to create access for you; Those who could and would go to bat for you; The types of relationship with people who have power and influence and were willing to use both in your behalf. The evidence is clear that these actionable relationships are what matter most. In every case study of the black and minority entrepreneurs that had major successes, each of them pointed to a person who “hooked them up.”
These relationships are not easy to create. Relationships at this level cannot be legislated, or created through programs. This is the hard work of the Supplier Diversity Industry. This is the element of the industry with the most challenge but yet the most lasting opportunity. This is the tough stuff. The non-business, attitude changing, comfort zone escaping, stereotype breaking work that has years of momentum that must be broken. Actionable relationships are developed the old fashioned way. They happen over time. They are galvanized through working together and fulfilling on first small and then larger commitments to each other. These special relationships are solidified by mutual respect and value driven support. The cornerstone of actionable relationships is trust and to have trust you must be trust-worthy. Bottom-line, there are no major successes in business without actionable relationships.
The Supplier Diversity Industry is small but growing rapidly. After nearly 40 years of efforts, all of the elements of growth are in place. To succeed in this evolving industry will demand a renewed focus on the key elements of how business really works. The missed expectations of the past have created fertile ground for skeptics. You can not let their voice hold up your progress. The common language of value has, inherent in it, the opportunity to improve how you do business. A strengthened strategic view will position you for sustained growth and profitability. But it is important to know that the next evolution of race and business in this country will work much like business always has. Relationships that are actionable are critical. Maybe for the first time ever, it is not about black. It is not about white. It is about green. Are you ready for that?
Key Facts of Supplier Diversity Industry
- Leading Industry Association: National Minority Supplier Development Council
- Over 3500 corporate members
- 39 local affiliates
- 1500+ minority business members - Minority owned businesses account for over 4.5 million U.S. jobs
- 22 percent of employees in minority owned firms come from low income neighborhoods
- 3 percent of corporate spending is with minority owned businesses
- This article is a reprint from Black MBA Magazine.
- ©Melvin J. Gravely, II 2006
- Dr. Gravely is the author of When Black and White Make Green: The Next Evolution in Business & Race and an expert in creating successful plans for the development of minority businesses.
- For more information on how to achieve this success, please visit www.BlackWhiteGreen.com or e-mail Dr. Gravely at This email address is being protected from spambots. You need JavaScript enabled to view it..
