Common Mistakes in Design and Implementation
A study by the research firm The Hackett Group, a global leader in business advisory, business benchmarking, and business transformation consulting services, indicates that many companies make several common errors in managing their supplier diversity initiatives. To start, too few companies focus on developing programs that further their corporate goals. Instead, they focus on hitting certain numbers or gaining recognition from their customers or from other companies within their industries. These are certainly not bad aspirational goals, but they may not provide all the value that a more comprehensive approach might deliver. And even when programs align with corporate objectives, management often fails to ensure alignment at the operational level.
Hackett’s study also found that most programs rely on overly simplistic measures to evaluate their programs. For instance, about 90% of organizations track their percentage of spending with diverse suppliers. However, fewer than half of the study participants track the percentage of diverse suppliers in the total pool of suppliers.