Developing and sustaining a successful supplier diversity program requires intentionality, accountability, data, and resources. This was one of the key takeaways from the Greater Houston Partnership’s first interactive program that aims to improve outcomes for Minority Business Enterprises. Improving outcomes for Minority Business Enterprises is one of the two priorities of One Houston Together alongside talent advancement and board representation for people of color.  The Partnership hosted its first Supplier Diversity Innovation Lab designed for members responsible for purchasing, supplier diversity and supply chain. Attendees represented seven industries including administrative and support services, energy, health care and life sciences, higher education, manufacturing, professional services, and real estate.  Partnership Executive Partner JPMorgan Chase shared how the firm is harnessing its business, policy, philanthropy, and data expertise to reduce the racial wealth gap in Black, Hispanic, and Latino communities through its Global Supplier Diversity program. The company also shared tactics and best practices that help them meet business goals and promote economic growth.   Featured presenters Jim Flynn, Executive Director of Global Supplier Diversity at JPMorgan, and Nancy Minchillo, Vice President of Global Supplier Diversity at JPMorgan Chase, shared three key actions for companies at the early stage of developing supplier diversity programs.   Understand Your Data  “You need to know who you’re working with and what you’re buying,” Minchillo said. She encourages companies to dive deep into the data to allow for greater alignment with business goals and expectations. According to Minchillo, companies should understand their suppliers, capabilities, spend and whether there is room for growth.  Incorporate a “Now, Near and Far” Strategy  One of the strategies JPMorgan’s Global Supplier Diversity team applies is identifying what it can do for MBEs depending on the MBEs’ needs and their stage of growth.   Companies looking to increase their spend with MBEs should focus on immediate, near-term and long-term goals as well as on the company’s growth plan to ensure that goals are achieved for both the company and the MBE.  Flynn said increasing diverse spend should be a “multiprong diverse approach” that partners with procurement divisions to ensure a pipeline of prospects.   Be Intentional and Deliberate  Incorporating a business partner diversity strategy versus the traditional supplier diversity approach has also been key for JPMorgan’s success. The business partner diversity strategy allows for a more intentional and holistic approach to a supplier diversity program.    Flynn and Minchillo reminded Partnership members that success does not happen overnight when it comes to starting or expanding a program to grow spend with MBEs. Change happens gradually but it does happen, and JPMorgan Chase provides a roadmap that can help other Partnership members chart their course.  Learn more about the Partnership’s supplier diversity efforts by contacting Damean Townsend, Senior Director of Supplier Diversity. 

Minority Business Enterprises are vital to local and national economies. In the Houston region, certified minority businesses support more than 70,000 jobs and generated $14 billion in economic activity in 2020.  In May during the Partnership’s One Houston Together Supplier Diversity Roundtable, Darrin Redus, CEO of Cincinnati Minority Business Accelerator, highlighted the accelerator’s success and innovative practices that are delivering significant results for minority business enterprises (MBEs). Increasing spending with MBEs is one of two priorities of One Houston Together alongside talent advancement and increasing racial diversity on boards.   The Cincinnati business accelerator was founded in 2003 to address the racial disparities in business ownership in the Cincinnati region, drive economic activity and increase employment in underemployed segments. The accelerator works primarily with mid-cap and large-cap corporations to create jobs in the region through their collective commitment to minority spend and to help the companies meet their supplier diversity and inclusion goals by connecting to minority-owned companies. To date, the accelerator has supported 70 companies with average annual revenues of $30 million. The program centers around four strategic pillars: Grow, Build, Attract and Create. Grow existing portfolio firms to the next level. Build emerging minority businesses under the $1 million threshold with high growth potential. Attract large-scale MBEs to the region. The focus is more on expansion and identifying sizeable MBEs in specific industries that corporate partners can incentivize to expand to the Cincinnati region. Create MBEs via the acquisition of existing, mainstream non-minority firms. For example, aging businesses with no succession plan. The program isn’t a one-size-fits-all approach, instead, it provides customized analysis, resources and funding to grow the MBE over time, never graduating them from the program, unlike other accelerator programs. “Ultimately, everything that we do with these companies is rooted in the financial assessment because, without that, you’re somewhat flying blind,” Redus said. Within three to five years, the MBEs are able to double their revenue due to how the program is structured, according to Redus.  Another innovative practice the Cincinnati Minority Business Accelerator has launched is the MBA Fund 1, which provides access to equity and growth capital for Black and Hispanic entrepreneurs for scalable business ventures. Mainstream businesses lacking succession plans are the primary investment target followed by existing minority firms that require growth equity and emerging minority firms. The Cincinnati model provides a proven roadmap to scale high-growth minority businesses and is instructive for companies and economic development organizations.  To learn more about the Partnership’s supplier diversity efforts, members should join our roundtable and participate in the upcoming Supplier Diversity Innovation Lab on August 24, 2023. Contact Damean Townsend, Senior Director, Supplier Diversity, for more information.