It’s been proven that supplier diversity programs drive business value. But demonstrating that value and advancing your supplier diversity program requires leaders to work more closely with their business unit stakeholders.
The recent 2024 State of Supplier Diversity Report identified that 66% of supplier diversity leaders spend half or more of their time with their line of business stakeholders like specific business unit leaders, Sales, Marketing, and even government affairs. This has required them to develop new skills and networks.
In a recent Supplier.io webinar, Dwayne Norris, Supplier Diversity Manager at Enterprise Mobility, shared his insights on how supplier diversity leaders can cultivate stronger partnerships with their internal stakeholders. His advice centered around sharing actionable data, setting aligned goals, and proactively engaging with business units—actions that any organization can adopt to ensure the success and visibility of its supplier diversity program.
Sharing business unit data for actionable insights
Supplier diversity data needs to be accurate, transparent, and actionable. Norris emphasizes that reporting on supplier diversity shouldn’t be limited to just high-level corporate figures; instead, it should extend to granular, business unit-specific data. Norris recommends using enriched data to generate detailed, actionable insights that each business unit can directly connect to its own goals and outcomes.
For example, Norris and his team at Enterprise Mobility share supplier diversity performance data segmented by each line of business. This includes spend by region, product category, and specific business units, which can help stakeholders understand the real-time impact of their contributions to diversity goals.
But Norris goes beyond just measuring spend at the business until level. He notes, “While diverse spend is important, the economic impact data gives us a better gauge of how we’re actually contributing to our communities,” emphasizing the added value of reporting economic contributions like job creation and community tax revenue alongside spending.
By presenting supplier diversity as more than just compliance, Norris demonstrates how diverse sourcing can positively impact individual departments’ operational efficiency and market positioning, leading to broader company buy-in and ownership.
Partnering and setting goals with business leaders
Beyond just reporting, leaders like Norris are partnering with their business stakeholders to identify specific growth opportunities and setting goals. For Norris, setting clear, realistic goals starts with understanding the unique needs of each business unit.
Supplier diversity teams, he explains, should adjust targets based on available diverse suppliers and the specific opportunities in a given area or function. “A state or region that’s highly diverse will naturally provide more opportunities than areas that aren’t,” says Norris. At Enterprise, each region sets its goals based on available opportunities and expected business outcomes, fostering alignment and motivation to achieve supplier diversity goals.
Norris also advocates for ongoing conversations with stakeholders, reminding leaders to prioritize local needs and to address any potential limitations openly. This approach not only improves results, but also nurtures trust and accountability across business units, as each leader understands how diversity goals align directly with their unique capabilities and constraints.
To make goal-setting effective, Norris suggests regularly tracking metrics, including quarterly reviews of diverse spend, economic impact, and growth projections for suppliers. Supplier diversity teams can guide business leaders through the available data to make informed decisions on how they can contribute more effectively to the overall diversity program. Additionally, Norris recommends creating a “heat map of opportunities” that highlights areas with the highest potential for impact, making it easy for business units to see where their efforts can have the most significant effect.
Proactive engagement as a foundation for success
One of the standout themes in Norris’s talk was the importance of proactive, consistent outreach to build strong relationships between supplier diversity leaders and business units. Norris estimates that the most effective supplier diversity leaders spend at least 50% of their time in direct engagement with their stakeholders. This high-touch approach helps him remain attuned to changing business needs and ensures that supplier diversity stays top of mind in each unit’s operations.
Norris shared practical advice on approaching these conversations: supplier diversity leaders should first discuss how they can support each business unit’s objectives, rather than focusing solely on diversity outcomes. As Norris explains, “It’s about finding the best partners while including small and diverse suppliers in the process.” By positioning himself as a business partner first, he builds credibility and opens the door for more substantial supplier diversity investments.
An effective way to cultivate these partnerships is by becoming involved in RFPs early in the process. Norris leverages his relationships and data insights in Supplier.io’s Supplier Explorer to filter suppliers according to each unit’s needs, looking at factors like scale, regional availability, and Supplier.io’s “TrustIQ” ratings.
This strategic approach ensures that the suppliers chosen are not only diverse but are also equipped to meet the specific needs of each department. This aligns business objectives with diversity initiatives and helps reduce the risk of onboarding unprepared suppliers.
Building a culture of shared ownership in supplier diversity
As Norris’s experience illustrates, a successful supplier diversity program depends on more than good intentions—it requires a proactive, data-driven approach to engage business units and align them around shared goals. By sharing detailed data, setting clear, customized goals, and actively engaging stakeholders, supplier diversity leaders can foster a culture of ownership and impact within their organizations.
Supplier diversity is no longer a check-the-box function but an opportunity to create business and social value. Norris’s approach demonstrates that, with the right strategies, supplier diversity leaders can make a compelling case to stakeholders for the long-term value of their program, ultimately driving a more inclusive and resilient supply chain. For organizations looking to advance their supplier diversity programs, implementing Norris’s insights is a critical step toward achieving sustainable and measurable success.
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