Let’s get right to it. Diversity & Inclusion programs do 1 of 2 things:
- positively impact the bottom-line of the business, or
- serve as a “we like women & brown people” PR campaign.
The question is simple: what is the objective of the business? Calm down; there’s no wrong answer. If the business is looking to avoid the PR threat of looking racist or misogynistic in an era where media leans liberal, then a “we like women & brown people” initiative is a good idea. If the business leadership is actually interested in profiting while creating gender & racial parity by creating subcontract opportunities for smaller businesses capable and ready to perform at a high level, then a Diversity & Inclusion program is a great idea.
This is a business blog so you can guess where I’m going to focus. PROFITS!!! So let’s dig into how to build a profitable Diversity & Inclusion program…
The best example is the Federal 8(A) Program. The program matches established firms (mentors) with up & coming firms (proteges) . The protege is taken through a qualification process where their ability to compete, capacity to make payroll while scaling up, and are assessed on their technical & management preparedness. Luckily for you, you don’t need permission to build your own program. Here’s a 4 step guideline…
Step 1: GET FOCUSED
Answer this question: are there contract opportunities you could capitalize on if
- you had a larger workforce?
- you could leverage the minority status of a subcontractor?
Step 2: DON’T FAIL TO PLAN
Study the Federal 8(a) program to develop your own vetting process for subcontractors. Key elements are:
- What is the largest contract they have won to date?
- Are they cash flow positive? Do they have a credit facility in place to ensure they can make payroll if afforded a larger contract opportunity?
- What is their capacity to scale their workforce?
Step 3: GRAND OPENING
This is where your PR department gets all warm & fuzzy. Charge them with getting word to the little fish in your industry that you are starting a Diversity & Inclusion program aimed at increasing the profits of both parties.
Step 4: THE HUNT
Now that you have your i’s dotted and your t’s crossed, set GrowExpand.com, or your in-house business development expert to the task of identifying & winning contract opportunities for your new alliance.
Okay, there you have the framework for profits and good PR. Since I didn’t write this to entertain you, please, put it to work!