Industry Diversity Efforts Underway, and Suppliers Can Help, FCC Workshop Hears
Diversity in the tech and related industries is improving, and subject of much focus by large companies which still can do more to ease the burdens on minority-owned suppliers, executives said at an FCC workshop Thursday. Other experts have said similar in recent days, as more big tech companies are releasing more data about minority and female hiring (see 1508180055 and 1508120043). And Commissioner Mignon Clyburn said diversity is important and even part of the Telecom Act. Yet sometimes, diverse suppliers unprepared to land big orders can themselves be part of the problem, panelists said at the FCC's fourth annual event on supplier diversity.
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"Supplier diversity is woven into the fabric of our national communications policy," Clyburn said, citing Section 257 of the Telecom Act, which tasks the commission with "identifying and eliminating ... market entry barriers for entrepreneurs and other small businesses." Even "if this directive were not part of our federal statute, supplier diversity is important because it yields tremendous benefits to all stakeholders, not just those companies who might be awarded that bid," Clyburn said. She also mentioned the commission's efforts to expand broadband to unserved and underserved areas, which she said will benefit small businesses and suppliers. "Spectrum is the fuel for wireless enabling opportunities, and [diverse suppliers] are the enablers of those opportunities," Clyburn said.
Fernando Hernandez, Microsoft supplier diversity director, said he is looking for new ways to establish and incorporate supplier diversity. Traditional supplier diversity "is good, but we need a 2.0 model," Hernandez said. Comcast NBCUniversal Supplier Diversity Manager Jay Burks said Comcast has a continued focus on looking for diverse vendors to add to its supply chain. Earlier this week, a supplier diversity initiative said that Comcast NBCU joined (see 1508190068). Natalie Robinson, CBS Television supplier diversity director, said her company has made supplier diversity a focus, and hosts yearly matchmaker sessions to connect potential suppliers with the company's procurement team.
Both large companies and small businesses can face a few pitfalls during the supplier procurement process, panelists said. Suppliers "have to remember [they] are dealing with a large corporation" and be aware of its timing, Hernandez said. "Our procurement process takes a long time." Hernandez also said it's critical for suppliers to establish relationships with individuals, instead of just "pushing paper" to land a contract. Video and digital communication is more personal and a better way to engage with potential clients than relying on traditional paper forms, he said. "Understanding the corporate culture is really critical." He encouraged minority suppliers to be concise and efficient in their communication with large companies, and warned of reaching "the point of diminishing return" if suppliers try to communicate too much with potential clients.
Nneka Chiazor, Verizon federal regulatory affairs director, said many suppliers will overpromise and underdeliver. "It's painful for us as minorities in a corporation to take on a supplier and champion their cause and take it to the highest point you can, only to find out that they aren't ready," she said. Robinson agreed, and said she encounters many suppliers that land a contract, but aren't prepared for the immediate workload placed on them and don't have enough resources to do what they initially proposed.
Panelists said communication, networking and patience are some of the main keys for diverse suppliers to land contracts with large corporations. "People ultimately want to do business with people they know," said Eugene Agee, Sprint vice president-procurement. "You build relationships by connecting with people," Chiazor said: "Do your homework and be prepared." Burks agreed, but said face-to-face meetings can be hard to get. "Face to face is important, but to get the face-to-face [meeting] you have to" sometimes begin with social media interaction and online networking, he said. "It's the passion that you communicate about your business that I think is key in building that [client's] trust."