On Thursday, I had the opportunity to attend the morning sessions of the Federal Communications Commission’s Fourth Supplier Diversity Conference, which highlighted the importance of these efforts in the communications industry. The FCC’s Office of Communications Business Opportunities (OCBO) organized the event and during my welcoming remarks, I gave a special “shout out” to Director Thomas Reed because, prior to his tenure, the agency had never held supplier diversity workshops.
It is not often mentioned, but diversity is woven into the very fabric of our national communications policy. Section 257 of the Communications Act directs the FCC to lower barriers to entry for entrepreneurs and small businesses, in the provision of parts and services, to communications companies.
Even if this directive were not in our federal statute, supplier diversity is important because it yields tremendous benefits to all stakeholders, not just the companies awarded the bid. Supplier diversity adds great economic value to our nation because it enables these diverse businesses to grow, which in turn, produces incredible multiplier effects.
Our nation’s economic recovery and sustainability are improved because these enterprises are more likely to hire from and invest in their own communities, which often are underserved and lacking in adequate investment. Because many of these businesses are small and forced by lack of scale to be resourceful, they are more likely to be energized, nimble and creative. They bring unique talents and perspectives to market and are more likely to provide cutting edge products and services to existing and emerging consumer markets. Given the dramatic shifts in our demographic landscape here and across the globe, these elements are proving to be keys to success.
Both panels were inspiring and enlightening. Fernando Hernandez, the Director of Supplier Diversity at Microsoft, shared how he made the business case for growing that company’s global program by showing that, if it wants to truly serve the next billion customers, then it must address any existing challenges it may have in dealing with diverse populations here at home because many of those customers from emerging markets will not look like the first two billion of already connected citizens. So when it came to expanding the company’s training programs in their call centers and internship programs, Microsoft not only trained those employees beyond what the core calling center functions required, but they expanded their outreach efforts to the employee’s and intern’s family members. What this has yielded is a more skilled employee, with a greater chance of being promoted, and because of this, is more willing to remain with the company, and an intern whose family is more likely to support what for them may be an unchartered career path, because by being included, they now understand their child’s potential in the STEM field.
Sharon Pinder, President and CEO of the Capital Region Minority Supplier Development Council, joked that what she learned firsthand, when her “.com turned into a .bomb” is that minority and women owned-small businesses should not only receive their Minority Business Enterprise (MBE) certification, but that they should strive to diversify their client base. Representatives from AT&T, CBS, Comcast, Cox, Sprint, and Verizon also underscored the importance of the MBE certificate, engaging early with companies before the request for proposal stage, being able to deliver on your contracted promises, and meeting the actual people in the communications companies who will be using the parts and services.
Perhaps the most inspiring presentation came from Tonee Bell, Chairman and CEO of A Unity System, Inc., a computer and smartwatch manufacturer. Bell started his company 15 years ago with the dream of bridging the digital divide and recycling a percentage of company profits back into the community. Although he is originally from North Carolina, he has been DC-based for about three years and has attended every OCBO conference where he did a lot more than hand out business cards. He got to know every person in the room, cultivated relationships, and leveraged those relationships which eventually led him to landing a major contract with Walmart. He also advised small businesses to “be patient and persistent, confident but not cocky” when it comes to pitching your product. “Your priorities are not theirs… so you must figure out when to push, [when to] pull or [when to] circumvent.”
Bell also shared a quote from his grandfather, Henry Booth, who was “the smartest man I’ve ever known even though he only had a third grade education.” For me, this quote not only wonderfully sums up what drives the entrepreneurial resolve that will continue to fuel our nation’s economy, but they are inspirational words to live by: “Why not go out on a limb? [Isn’t] that where the fruit is?”