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Showing posts from May, 2020
THE SECRET SAUCE


Corporations were interested in giving a helping hand to minority-owned companies - not a hand-out - in the early years of supplier diversity. They were willing to help them get in the door and to reach a certain level, but they were not guaranteeing a contract for life. In order to get a contract for life, your company had to out-perform everybody else that was performing the same service. Once the helping hand had been extended and you took it, you had to quickly transition to leveraging that helping hand to get new business with new customers.
Large companies are very judicious when awarding contracts to minority-owned and/or woman-owned businesses because of what is known as a “pass through” or “front business”. Majority owned companies would find someone diverse – it could be a woman, a Hispanic, African American, an Asian, etc., or in today’s world, a gay, lesbian, or veteran and use that person as a “front” to have their company qualify as a minority-owned busine…