Harley Davidson is Dumping Supplier Diversity
There is a tremendous amount wrong with supplier diversity metrics today.
I live and work in a Qualified Opportunity Zone (QOE). I even invested in a QOE fund in my zip code to support the local market.
Yet, as a white male (Jew), if I were to launch a Harley parts supplier in Gary, Indiana (and I maintained majority control) and I hired local residents, it would not be considered a diverse business, despite the fact my zipcode's average income is $32K per year and the population is 76.7% Black.
However, if I worked with a Black friend and set up a business on the North Shore of Chicago (or downtown), it could qualify as a diverse supplier, even if we did not hire any minorities, provided he owned 51% (even if I fronted the capital).
Given the National Minority Supplier Development Council (NMSDC) and other certifying authorities generally benefit from keeping the status quo with their certification programs, my two cents is that it will take radical steps like Harley Davidson's to fix supplier diversity programs to focus on metrics that matter such as providing well-paying jobs to those most in need (especially second chance workers) and union and non-union apprenticeship programs in the trades, manufacturing and service sector where economic blight persists.
Procurement has tremendous power to do right here, not just tick a box. Perhaps this starts with stopping the ticking of boxes that do little more than virtue signal.
What do you think? Please feel free to disagree completely!
Debate is sorely needed on supplier diversity to align on a new set of metrics that correlate with better outcomes for employment, income, job training, the local economy, and innovation in the areas of the US that need it most.
#supplierdiversity #procurement #innovation
Construction Senior Site Manager @ Barratt Development plc | Construction Management
3moWishing Dave, Paul and the NuStaff team all the success in driving the company forward. Once again, thank you all for your assistance and support since Johner passed away. 👍