HomeMy WebLinkAboutZeilinksi et al - Opportunity AcceleratorThe Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
5/l/2023
To: City Hall of Iowa City
City Manager's Office
410 E Washington Street
Iowa City, IA 52240
CMOadmin@iowa- city.org
From: Collaborating Team Members on the Proposal
Julie Zielinski,
Independent Consultant, and Associate Professor of Practice, Tippie College of Business
2215 Willenbrock Circle, Iowa City, IA 52245
319 400 4169
iulieazielinski(& jzmail.com
Dr. Suj Chandrasekhar, Principal, Strategic Insights Inc, (Iowa S Corp, TSB, WOSB)
222 3rd Ave SE, Armstrong Development Building, #513, Cedar Rapids, IA 52402
319 360 5876
sui (i4strateizicinsi2hts.com
Scott Hauser, President, Strategy Solutions Inc. (Iowa S Corp
160117ox Trail Drive NE, Cedar Rapids, IA 52402
319 360 9123
shauser(a,strateaysolutionsinc. com
To the Iowa City Council,
Re- Business Support System to Serve Iowa City Based BIPOC Businesses and Entrepreneurs
The Collaborative team of Julie Zielinski, Iowa City based independent consultant and Associate
Prof. Tippie School of Business, Dr. Suj Chandrasekhar, Principal of Strategic Insights Inc., and
Scott Hauser, Owner and President of Strategy Solutions Inc, is proposing a High Touch -High
Tech Solution to enhance the Business Support Structure for Iowa City's BIPOC businesses and
entrepreneurs.
Our team is proposing to work in a supporting role with the Iowa City leadership as well as other
organizations helping to support this grant for Equitable Economic Growth in the Iowa City area.
Our collective competencies and experience in coaching and mentoring entrepreneurs, and
business consulting, combined with a ready to use state -of -the art digital platform, will bring
unparalleled value, speed, and impact to the Iowa City Equitable Economic Growth agenda.
stratac, - insights 1
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
Our team has a deep understanding of the macro and micro environment of Iowa City
Entrepreneurs, as well of the entrepreneurial challenges of the BIPOC and disadvantaged
businesses in general.
Our Digital Platform -The Opportunity Accelerator truly embodies the principles of
Democratization of Opportunities and Resources. The Opportunity Accelerator features digital
opportunity access, an e-marketplace, an access to capital interface, and a state-of-the-art Learning
and Coaching interface in a user-friendly dashboard. The city can include other consultants,
advisors, and resources from Iowa City and beyond as needed with the evolving needs of the
community. This helps the city be more inclusive with resources and also be in a position to rotate
out resources based on usage and feedback metrics.
Our team's approach of combining live expert coaching and mentoring augmented by the advanced
resources of our Digital Platform will serve as a dynamic Entrepreneurial Resource Center and a
great catalyst for underestimated Businesses in the Iowa City area.
Below is the specific field of information required for the grant request.
1. Collaborating Team Overview (Detailed Bios enclosed)
1. Julie Zielinski is an Iowa City based independent consultant and Associate Professor
of Practice at the University of Iowa's Tippie College of Business, where she teaches
courses in the, MBA, BBA, and JPEC programs. Julie worked for ten years as Vice
President of Marketing and Strategy with the Entrepreneurial Development Center,
where she advised and mentored Eastern Iowa entrepreneurs.
2. Dr. Suj Chandrasekhar, is founder and Principal of Strategic Insights Inc, an Iowa S
Corp as well as an Iowa TSB and a WOSB. She obtained her Ph.D. from the
University of Iowa and founded Strategic Insights in 2000. Her expertise is Business
Strategy, Sales -Marketing Alignment, Market Research, and Advanced Analytics.
She is considered a thought leader in the area of Minority Business Development,
has published articles in this area, and is a frequent speaker at Conventions on the
topic.
3. Scott Hauser is the founder of Strategy Solutions Inc., an Iowa -based strategy and
management consulting firm. Prior to starting his own firm, Scott work for many
years in various professional settings and obtained his MBA. Scott has been
involved in teaching and mentoring entrepreneurs at the University of Iowa for
nearly 20 years.
Team Email Addresses: Please send all email correspondence related to this proposal to all three
collaborators.
iulieazielinski(&amail.com; shauser(&strate2vsolutionsinc.com; suinstrate2icinsi2hts.com.
Office addresses and phone numbers of all three collaborators are detailed in the first page of this
proposal.
stratac, - insights
a. z
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
Address of Proiect site: This is a Business Support System Project and services will be rendered
virtually or at existing Iowa City Entrepreneurial Centers and offices.
II. Goal of the Proiect:
The goal of our proposed solution is to combine personalized mentoring and coaching with the
Digital Opportunity Accelerator Platform to help Iowa City's underestimated and disadvantaged
businesses.
Our approach would help scale these businesses by connecting them to more opportunities,
providing them with more equitable access to capital and credit, ongoing skills development,
training, coaching, mentoring, and networking. The Opportunity Accelerator can be adapted to the
Iowa City environment to help start, grow, scale underestimated businesses and spearhead
innovation. In essence, this program combines personalized and highly skilled mentoring and
coaching with a digitally scaled access to contract opportunities, business advisory services, and
much needed access to credit and capital. Access to reliable and timely credit and capital are major
barriers to growth for underestimated business. The Opportunity Accelerator as a digital platform
can greatly help mitigate some of these traditional barriers, thereby paving the way for more
equitable economic growth.
III. A description of how the project builds community resiliency following the COVID-19
pandemic by building capacity to serve residents of the community.
Dr. Suj Chandrasekhar at Strategic Insights Inc, has conducted several research studies on
challenges facing disadvantaged businesses, especially in the post pandemic environment. Her
research has consistently shown that resilience is built with a "gestalt" approach. Entrepreneurship
is the single biggest way to build wealth in historically disadvantaged communities. Starting a new
business with seed funding is just the start. Sustaining these businesses takes ongoing mentoring,
coaching, advisory services, and most importantly access to capital and credit.
The digital platform "Opportunity Accelerator" was designed with the above research findings in
mind, post pandemic. It has a track record of helping disadvantaged businesses grow. Mentoring,
coaching, and digitally enhanced access to advisory and capital and credit resources can help new
BIPOC start-ups as well existing BIPOC businesses that have a desire to grow. The digital interface
can also enable partnerships between BIPOCs and other successful large and medium sized
businesses if so desired.
The Opportunity Accelerator is a custom designed platform developed by Strategic Insights Inc.
for scaling business support to disadvantaged businesses and entrepreneurs.
The Opportunity Accelerator improves many parts of locally owned businesses by giving them
resources that include small business technical assistance, community navigating services, and
similar support networks. The Accelerator also enables equitable opportunity access, networking,
better access to credit and capital, and enhanced access to training, mentoring, and coaching. The
stratac, - insights 3
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
platform that was developed by Strategic Insights can be white labeled and adapted to Iowa City
demographics within 30-45 days and can be accessed as a SaaS subscription. This will help Iowa
city launch a comprehensive digitally enabled business support program within a relatively short
period of time and without a huge drain on capital and human resources.
This is a highly sustainable long term impact approach that could well become the cornerstone for
equitable economic growth of underestimated communities in the Iowa City area. This High Touch
-High Tech approach would make Iowa City a true regional leader in equitable economic growth.
The Opportunity Accelerator Platform can be adapted to the Iowa City environment to help start,
grow, and scale businesses, and spearhead innovation. It also offers new and existing area
businesses national and global access to opportunities and markets and capital with relative ease.
The Collaboration team on this proposal would like to propose a live demo of the Opportunity
Accelerator as part of the proposal presentation. This could help demonstrate how the process of
mentoring and coaching would be interlaced with the Opportunity Accelerator to provide a great
lift to underestimated area businesses.
Features of the Opportunity Accelerator
1. Opportunity matching with potential buyers with the ability to connect to buyers globally,
if needed, and the ability to connect directly to state, local, and enterprise ERP systems.
2. An E-Marketplace for sellers to access potential buyers and markets around the globe and
receive bookings and payments on the platform.
3. An Access to Capital and Credit interface which can be populated with lending institutions
from Iowa City, and outside the city to make targeted capital and credit more readily
available to disadvantaged businesses. The interface also includes an Advisory Services
function that can be populated with preferred business services advisors. This application
will provide the Iowa City leadership the option to include a broader range of on demand
sponsored or otherwise business advisory services providers from the area and beyond. The
city can charge a fee and thus make this also a revenue stream for other social services.
4. A state-of-the-art Coaching and Mentoring interface with mobile application.
5. A Digital Demand Generation and Market Intelligence application to help Iowa City
businesses learn about trends and opportunities relevant to their industry
Overall, our High Touch -High Tech approach mentors nascent and mature underestimated
businesses and connects them with unique opportunities they would have not had
otherwise. The program is focused not only on starting new businesses, but also on
sustaining them long term, creating more resiliency for the business community. This helps
address the revolving door issue many communities face with entrepreneurship in
underestimated groups.
stratac, - insights 4
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
Screenshot of the Opportunitv Accelerator Dashboard
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Screenshot of the Access to Capital Interface Dashboard
CAPITAL SUITE Hone PQ Tools Advisors Capital Sources Capital Seekers Valuations More
More Capital Access. More Deals Done.
A Full Suite of Capital Transaction Tools
Help your clients Lend / Invest / Acquire Borrow for, fund, or
borrow, raise, sell marketplace sell your business
Get results Predictably Quick Connect with Pre -Qualified fund -seekers
Choose ADVISOR at registration Choose CAPITAL PROVIDER at registration
Testing the waters?
What is my business worth?
Pre -Qualify for and find the best deal
Choose CAPITAL SEEKER at registration
How much can I borrow?
Find out what your business might be worth Pre -qualify your business for borrowing
Valuation:• •
Already Registered?
Login
insights i 5
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
Opportunity Accelerator and High Impact Participant Mentoring
Proposal Budget Pricing
One-time start-up costs:
One-time adaption fee for the Opportunity Accelerator $150,000
Includes needs analysis -based customization to Iowa City entrepreneurs and
providers, Uploading of Registering Entity information, ongoing Support
Per participant served costs:
Option #1 - Access to Opportunity Accelerator Digital Platform
Annual business subscription - includes Access to Opportunities, Access to $1,500
Capital and Credit, E-marketplace to Sell and Collect Payments, and On
Demand Advisory Services and Ongoing Support
Option #2 —
A. Access to Opportunity Accelerator Digital Platform and Premium Professional
Mentoring
Annual business subscription - includes Access to Opportunities, Access to $1,500
Capital and Credit, E-marketplace to Sell and Collect Payments, and On Demand
Advisory Plus:
Six virtual high impact mentoring sessions customized to each business participant:
PLUS
B. Market planning mentoring:
I.) market opportunity analysis
II.) marketing plan development
III.) product/service branding, promotion and sales
IV.) distribution
PLUS
C. Business formation and foundation mentoring:
I.) business formation and initial funding
Il.) start-up opportunity and growth projections
III.) accounting, finance, and human capital
IV.) financing and investors growth capital
Features B & C $2000
Total Option #2 Pricing per business participant served 1 $3,500
Other Investments -The Opportunity Accelerator was developed with an initial investment of
$475,000 by Strategic Insights Inc over a period of 18 months in 2021-2022.
stratac, - insights
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
V. Execution of the vroiect. preliminary timeline for the estimated date to be completed:
Task
Timeline
Needs Analysis Completed 30 days from Approval
Adaptation of the Platform to Iowa City Completed 30-45 days after completion of
requirements Needs Analysis
Orientation and Roll -out 90 days from kick off
VI. A statement about the organization's ability to perform appropriate grant and financial
management, including any related experience managing city, state, or federal grant funds.
All team members have experience managing grants and fulfilling grant requirements. Dr. Suj
Chandrasekhar has worked with the National Minority Supplier Development Council in fulfilling
requirements of the MBDA (Department of Commerce) grant on "Access to Capital."
VII. A description of all work related to the project that has been completed to date, if any,
including any secured funding, contracted professional services, property, land acquisition,
grant, loan activity, etc.
As stated in the sections above, The Opportunity Accelerator was designed based on in-depth
research of the challenges facing minority and other disadvantaged entrepreneur groups. The
platform is well tested and ready to be adapted to Iowa City requirements. The Opportunity
Accelerator was developed with an initial investment of $475,000 by Strategic Insights Inc over a
period of 18 months in 2021-2022.
VIII. Any other information, including letters of support, the submitting agency deems
appropriate. As the funding entity, no letters of support should be sought from City of Iowa
City staff or elected officials.
Dr. Suj Chandrasekhar, Strategic Insights Inc. won the "Wells Fargo Grant for Cybersecurity"
in 2021. This grant went towards Strategic Insights proposing a detailed plan of action on helping
disadvantaged businesses be cybersecurity ready as part of contract readiness for Wells Fargo and
other organizations.
Dr, Suj Chandrasekhar collaborated with MIT Sloan School in 2018, on a Value Management
Study based Strategic Planning for the National Minority Supplier Development Council
Dr. Suj Chandrasekhar serves on the Advisory council for Diverse Manufacturers Supplier
Council.
Latest Thought Leadership Publication in the January `23 issue of Supply Chain Brain
enclosed.
stratac, - insights 7
Decision Support
The Opportunity Accelerator as a Business Support System for Iowa City Based BIPOC
Businesses and Entrepreneurs
Team References
1. Rebecca Neades, Vice President Government Affairs, Green State Credit Union,
rebeccaneades(& areenstate.ora
2. Jim Koch, Market Relationship Manager, BerganKDV, iim.kochaBerjzanKDV.com
3. John Smith, Chairman, CRST, ismith(d),crst.com
Thank you for your consideration,
Collaborating Team Members
Julie Zielinski
Suj Chandrasekhar
Scott Hauser
THANK YOU
stratac, - insights _ 8
Decision Support
Julie Zielinski
Associate Professor of Practice and Consultant
University of Iowa Tippie College of Business
Julie joined the University of Iowa Tippie College of Business Marketing faculty full time in
August, 2022 after a 30 year career in business, consulting, and adjunct teaching. She teaches
both undergraduate and M.B.A. courses in Consumer Behavior, Product Management,
Marketing Management, Marketing Strategy, and Corporate Strategy.
Julie joined the University of Iowa after 20 years in executive leadership roles, consulting
engagements, and adjunct teaching. Julie spent ten years as Vice President of Marketing and
Strategy at the Entrepreneurial Development Center, Inc, where she helped entrepreneurs
discover key customer insights and prioritize market growth opportunities, then translate these
strategies into executable business plans to build their brand's unique competitive advantage in
the marketplace. Her experience includes work with numerous B2B and 132C companies.
Prior to the EDC, Julie held a 16-year corporate marketing and strategy career with HNI
Corporation, where she held executive leadership roles in strategy, marketing research, product
management, branding, and new product development.
Through her independent consulting work, Julie has helped many local, national, and
international businesses identify unique competitive brand advantage and pursue creative and
actionable growth strategies.
Julie holds a B.A. from the University of Notre Dame and an M.B.A. from the University of Iowa.
STRATEGY SOLUTIONS
1 ', (: 0 R P U R A I P. I
SCOTT HAUSER AND STRATEGY SOLUTIONS, INC. BIO
SCOTT HAUSER
STRATEGY SOLUTIONS, INC.
Strategy and Management Consulting —
Performance Improvement Services
Executive Summary
• Experienced business professional with extensive real -world experiences
• Expertise in strategy, operations, finance, accounting, and consulting
• Dedicated results -orientated professional motivated by challenges and
accomplishments
Consulting Areas of Focus
Provide executive level consulting services including project management, decision analysis,
accounting and administrative function assessments, profit enhancement, strategic planning,
organizational effectiveness/structure advancement, business acquisition and sale advice, and
other top management advisory services.
Consultinq Activities
Some of Scott's successful engagements have included the following types of high -value
professional advisory services:
• Enhance project and change management efforts to help critical and complex initiatives be
accomplished in a timelier manner
• Provide financial analysis and decision modeling assistance to evaluate the attractiveness
and feasibility of large critical decisions
• Serve as a temporary or fractional chief financial officer ensuring accurate financial reporting
and effective financial management
• Coach business owners on understanding their value drivers and identifying tactics to
increase their company's value
• Improve the effectiveness and efficiency of various accounting, finance, and other
administrative functions
• Investigate lower than desired performance/profitability and identify specific improvement
recommendations
• Facilitate advancement planning processes including annual operational and strategic long-
range plans
• Assist key executives with organizational structure and top management team advancement
activities
• Advise Boards on governance, effective oversight and other special projects
• Provide business acquisition analysis, sale advice services, and merger integration support
• Recommend focused key performance indicators for management's efforts to drive
performance
• Facilitate financial institution selections to obtain additional financing and optimal services
• Perform forensic accounting and investigation services to support potential litigation situations
STRATEGY SOLUTIONS, INC. 319.360.9123 STRATEGIES, TACTICS AND
shauser@strategysolutionsinc.com 1601 FOX TRAIL DRIVE NE ANALYSIS TO ADVANCE
PROPRIETARY CEDAR RAPIDS, IA 52402 YOUR ORGANIZATION
STRATEGY SOLUTIONS
1♦ L b R P U R A. 1 U
SCOTT HAUSER AND STRATEGY SOLUTIONS, INC. (continued)
Experiences Prior to Strateav Solutions, Inc.
Scott has 30 plus years of professional experience in a variety of business settings. Immediately
prior to Strategy Solutions, Inc., Scott was a Senior Director, Strategy and Management
Consulting - Performance Improvement Services at RSM US LLP (formerly McGladrey) for many
years. Scott has also been in a variety of other positions, including Director of Administrative
Services, Finance Manager, and Senior Auditor. These experiences have resulted in Scott having
a practical implementation focused approach to advisory services, business consulting, and
implementing change.
Education and Certifications
• Master of Business Administration, with honors — University of Iowa/University of Northern
Iowa
• Bachelor of Arts in Accounting, with minor in Computer Science - University of Northern Iowa
• Certified Public Accountant
• Certified Managerial Accountant
Communitv Involvement
• Adjunct business professor/business mentor at the University of Iowa
• Rotary Club of Cedar Rapids
• Goodwill of the Heartland Board Member
• Emeritus University of Northern Iowa College of Business Administration Executive Advisory
Board Member
• Past Junior Achievement Board Member
• Past YMCA of the Cedar Rapids Metropolitan Area Executive Committee Board Member
• Past Cedar Valley Montessori School Board Member
Strateqv Solutions, Inc.
Scott formed Strategy Solutions, Inc. in 2004. Strategy Solutions was created to provide strategy
and management consulting advisory and implementation services to organizations who are
trying to improve, advance, and grow. Strategy Solutions, Inc. is an Iowa S-Corporation and is
fully authorized to become your long-term business partner.
Entitv Information:
EIN:71-0974692
STRATEGY SOLUTIONS, INC. 319.360.9123 STRATEGIES, TACTICS AND
shauser@strategysolutionsinc.com 1601 FOX TRAIL DRIVE NE ANALYSIS TO ADVANCE
PROPRIETARY CEDAR RAPIDS, IA 52402 YOUR ORGANIZATION
Dr. Sui Chandrasekhar is founder and a principal at Strategic
Insights, a business strategy and consulting firm based out of
Washington DC. Strategic Insights specializes in Market Research, Data
Analytics, Strategic Planning, Training & Development, Marketing, Sales,
and New Product Development strategies. Suj helps organizations
design and implement transformational data driven initiatives in the areas
of Supplier Diversity, Marketing and Sales, and New Product
Development.
She works with corporations to optimize investment in the areas of
Growth strategies and Innovation by leveraging state of the art
technology platforms.
She is a frequent speaker at company and industry events. Her clients
include a number of Fortune 500 companies across several industries.
Suj is co-author of the HBR classic "Ending the War between Sales and
Marketing" with Philip Kotler and Neil Rackham. Her work and research
with Phil Kotler and Rob Walcott on Marketing and Product Development
have been featured in the Wall Street Journal and MIT Sloan Review.
She is currently working on a global research project on value
management in Supplier Diversity.
She is a contributing author to the book "India's Global Powerhouses."
1
Strategic i n s i g l ��
Suj came to the US on a Fellowship to obtain her Ph.D. in Organizations
and Strategy from the University of Iowa. She worked with Prof. Jim
Price(student of Robert Merton) and Prof. Frank Schmidt (the pioneer of
Meta analysis). Suj is well trained in the Mertonian tradition in Sociology
as well as in advanced analytical frameworks.
Prior to coming to the US, Suj obtained her B.A. in Sociology from Stella
Maris College, Chennai and a Masters in Personnel Management and
Industrial Relations from the Tata Institute of Social Sciences, Mumbai.
Suj started her career as a Research Analyst in the Media industry. She
worked on Customer Engagement Research and Strategic Planning
projects for major Media clients including The New York Times and
Nielsen Corporation.
In 2000, Suj established Strategic Insights with a focus on research and
analytics driven strategic planning, Growth Strategies, and New Product
Development. The firm also provides Sales Training for clients in a
variety of industries. Suj was one of the contributors to the development
of the Challenger Sales training program.
Suj is currently working on a Value Management study to help major
corporations optimize their efforts in Supplier Diversity.
2
Strategic i n s i g l ��
Article by Dr. Suj Chandrasekhar,
Supply Chain Brain Think Tank
RSS
The Biggest Problems with Supplier
Diversity Programs and How to Fix
Them
Jon uary5, 2023
Dr. Sui Chandrasekhar. SCB Contributor
Organizations of every size are setting lofty goals and allocating money and time toward
supplier diversity programs, recognizing that disadvantaged groups should get a bigger slice
of their vendor pies.
Is it working? Probably not as well as they'd like. A robust 85%of Fortune 100 companies
have dedicated programs designed to source goods or services from companies helmed by
women, veterans, people of color and other non -majority groups, according to a recent
report by MIT Sloan Management Review. Yet only 59%of that segment reports how much
they source from diverse suppliers. And how much do they utilize? A mere 10% of their
supplies and services come via diverse firms.
The most common complaint I hear from companies is: "We can't find vendors who meet the
criteria." In response, organizations throw even more resources at the traditional outreach
and development.
But the problem isn't funding. It's program design
While well intended, most existing programs are far too generic and badly designed. They
don't focus on building pipelines based on specific diverse supplier competencies. The result?
They don't yield significant ROI for companies — or significant increases in contracts for
diverse suppliers.
It's time for companies to increase their diverse vendor base — and their RO1 — by using a
systems -based design to identify and develop sustainable pipelines of contract -ready
suppliers. This approach, applicable to industries and individual organizations alike, is critical
given how much the digital age requires supplier reskilling.
Here's how to go about it:
Achieve Better ROI by Designing a Diverse Supplier Competency Demand Map
Currently, most organizations try to find at least one diverse supplier to bid on every
RFP. While this is commendable, the challenge is to find suppliers who are both qualified and
contract -ready. You can achieve better RO1 if you first assess supplier competencies, then
follow through with targeted recruitment and development programs.
Let's use the hypothetical example of a manufacturer that has projected it needs 40 more
suppliers who have expertise in data analytics over the next five years. As their CPO, you and
your team should:
Set targets for the percentage of diverse suppliers that would be part of the new
supplier base. Perhaps a reasonable goal would be 20%, or eight vendors.
Assess the gaps between your company's goals and what its current diverse suppliers
can provide. Let's say this manufacturer currently only has one or two with
competencies in data analytics.
• Map out a targeted short- and long-term outreach and pipeline development program
for new diverse suppliers by identifying those that can be engaged as Tier I or Tier 11, as
well as the others which need development to become contract -ready.
• Engage with other companies in your industry to help you improve supplier diversity.
Together, you can gauge gaps in supplier competencies and invest in programs and
development centers that can get these vendors contract -ready. An industry -level
approach can result in better ROI for all.
• Add targeted competency and capacity building goals as metrics on your supplier
diversity dashboards. It helps your company remain accountable.
Make Better Use of Your Tier 1 Suppliers
Companies don't have to do everything themselves to reach diversity goals. They can —and
should —use their clout with prime vendors by insisting those prime vendors hire and
develop diverse suppliers to perform a certain proportion of the contracted work.
This use of indirect spending is a smart and efficient way of broadening your ecosystem. It
also helps you meet diversity goals since you're able to allocate work to companies that are
too small to meet your own company's size -restriction criteria.
For example, as a CPO at our hypothetical manufacturing company, you can include a clause
in your contract with a prime vendor that 10% of their spend must go to companies run by
under -represented groups. If possible, help that prime vendor by giving them a list of pre -
qualified providers you've already identified.
Leverage Your Organization's Other Social Justice Initiatives
A systems -based approach comes full circle when CPOs connect their supplier diversity
programs with their organization's other social justice initiatives, such as groups dedicated to
diversity, equity and inclusion (DEI), corporate social responsibility (CSR), orfoundation and
community development.
First, meet with these groups and demonstrate how your supplier program impacts economic
inclusion by promoting equitable access to the company's contracting opportunities.
Then agree to partnerwith one or more of these groups. Ask them to help you form alliances
with external foundations and funds that can provide your diverse potential suppliers with
preferred access to capital, credit, re-skilling, and training.
Trickle -Down Impacts
A well -designed, systems -based program can be the single biggest catalyst for wealth
creation and entrepreneurship for disadvantaged groups and communities. It can have a
transformational impact on promoting social equity in society at large and in local
communities.
Read more: Four Compelling Reasons to Integrate Diversity Into The Rethink of Your
Supply Chain
Your RO1 grows as well. When companies' use more diverse suppliers, they report higher
supplier innovation and competition, as well as lower costs, according to a 2021 survey
by TealBook and Jaeeer.
Anyone who works in sourcing, procurement, or supply management, from the CPO on down,
can make a significant impact on diverse communities when they take a systems -based
approach.
Dr. Suj Chandrosekhar is a founder and principal at Strategic Insiahts Inc.