Supplier diversity programs are an important initiative for many companies, governmental agencies, and not-for-profit entities around the country. In addition to these programs, specific projects are often undertaken with diversity goal requirements. 

Unfortunately, there are times when those who administer these programs and projects are not satisfied with the end results. Often, numerical requirements or targets are met.  Examples of targets include the following two directives:  "increase total dollars spent with targeted companies by 5% this fiscal year," and "achieve 25% minority and 10% female participation." Dissatisfaction also occurs when service and product providers fail to meet quality or cost requirements. When suppliers fail to meet expectations related to service and product quality, chances for development of meaningful relationships between all parties involved are reduced.

While working at The Northern Trust Company, I was involved with several projects that yielded very successful results in terms of minority participation. My favorite project was the construction of a $5 million financial center where over 67% of the construction dollars spent went to minority owned firms. The project had no major issues associated with completion time, dollars budgeted, or facility construction quality. As a result of this performance, significant relationships were built between The Northern Trust and some of the contractors on the project. But as is the case with most large projects, there were some subcontractors who did not meet expectations.

I recently embarked on a home remodeling project. My experience as a self-appointed general contractor provided some valuable lessons that can be used to improve any supplier diversity program and project. 

Now that 75 percent of my home remodeling project is complete, I have a much deeper appreciation for a fact I learned when I was my son's age: When clients receive quality products or services, they are more willing to establish longer-term relationships that lead to benefits for all. In addition to this endearing reminder, I will share five lessons that came out of my home remodeling experience.  These lessons might benefit those of you who are involved in supplier diversity programs or projects (as well as those of you who might be doing some remodeling around the house!):

BIG IS NOT ALWAYS BETTER

For example, my largest sub-contractor has been the one that is the most difficult to work with. They lack flexibility, have huge variations in work quality, and I have found it difficult to speak with the "real boss." In general, I find smaller firms to be more interested in meeting my needs. My job is more important to them, and this is reflected in the quality of work performed and the manner in which we communicate with one another.

"LET PLUMBERS DO THE PLUMBING"

BE FLEXIBLE WITH PAYMENT TERMS

More firms will be able to participate in your supplier diversity program if you look for ways to be flexible when paying for services or goods. Also, many of the companies who are involved in your programs will actually perform better if you find ways to accommodate their financial situation. Many companies, particularly smaller firms, have tighter cash flow requirements and simply cannot accept terms that a larger, more capitalized firm can. On my home remodeling project, I found that allowing for more frequent draws than normal helped at least one of my subcontractors to work on a large portion of the total project. This also allowed me to give additional work to this contractor, primarily because of the satisfaction that I had with the quality of work delivered throughout.

CONTROL YOUR EMOTIONS

Nothing drives my blood pressure up more than the word "extra". Unexpected items always come up in home remodeling projects, much like these items come up with capital projects in the business arena. Unfortunately, these items always result in either more time or more money (the third most popular option, lower quality, should be considered with a good deal of thought). When these obstacles appear, I always try to view the circumstances involved through a business impact paradigm. Looking at things with a "this really makes me mad" point of view is usually not productive. Most of the time, making decisions based solely on emotions will not produce the best results. I am especially reminded of this lesson as I walk across my foyer. Getting upset at the subcontractor and telling them to "just put the floor in right away" was not the thing to do. Getting bids for the additional work suggested would have been a much smarter option.

DIVERSITY IS NOT 

ABOUT FEELING GOOD

My project has included a wide variety of business owner types. These contractors are large, small, Black, White, female, male, old, new, and diverse in many other ways. As I see the final product coming together, it’s clear to me that I will have a much better home in the future because of the different perspectives brought to the project. And this was precisely the reason for incorporating diversity. Not to "feel good" about having inclusion, not to meet some numerical goal related to participation, and certainly not to meet any legal requirement. I did it because I knew that the final product would meet or exceed my expectations. 

Doing the right thing, that is, including and seeking diversity among your goods and service providers, generally results in much higher-quality results.

Guy Summers is a regularly featured columnist with diversityinbusiness.com.  Guy is founder and President of Farrell Group, LLC, a management consulting and training company.  The company's mission is to provide services that improve strategic relationships with clients, work associates, and other key contacts in the private, public, and not-for-profit sectors.

Farrell Group delivers its relationship services via seminars, speeches and consultation.  The company also provides training seminars for golf entertainment, often referred to as Business Golf.