{"id":1484,"date":"2020-08-20T14:31:03","date_gmt":"2020-08-20T18:31:03","guid":{"rendered":"https:\/\/thediversitymovement.com\/?p=1484"},"modified":"2023-12-12T17:00:27","modified_gmt":"2023-12-12T22:00:27","slug":"addressing-unconscious-bias-in-supplier-diversity","status":"publish","type":"post","link":"https:\/\/thediversitymovement.com\/addressing-unconscious-bias-in-supplier-diversity\/","title":{"rendered":"Addressing Unconscious Bias in Supplier Diversity"},"content":{"rendered":"<p><button id=\"listenButton1\" class=\"responsivevoice-button\" type=\"button\" value=\"Play\" title=\"ResponsiveVoice Tap to Start\/Stop Speech\"><span>&#128266; Listen to this article<\/span><\/button>\n        <script>\n            listenButton1.onclick = function(){\n                if(responsiveVoice.isPlaying()){\n                    responsiveVoice.cancel();\n                }else{\n                    responsiveVoice.speak(\"This article first appeared in American DBE Magazine\\'s Summer 2020 Issue (page 16). The impact of COVID-19 has fundamentally shifted the business landscape, causing growing uncertainty for most industries; and the engineering and construction (E&C) marketplace is not exempt. While projects are beginning to come back online, construction managers are struggling to fill jobs. Contractors are experiencing challenges in accessing a steady labor force due to growing fear among workers of contracting the virus. Many employees receiving unemployment benefits feel that coming back to work does not make financial sense given the uncertainty of future wages. Numerous projects are being delayed, leading to challenges with cash flow and payments to employees and contractors. In addition, construction managers are dealing with an uptick in internal human resources disputes involving the general workforce, craftsperson or subcontractor due to increasing uncertainty related to health, safety and the COVID-19 recovery timeline. With the rise of workplace tension, it is inevitable that the impact of bias will begin to impact the prospects of diverse suppliers. History shows that diverse suppliers experience the brunt of economic shifts as access to capital tightens. This phenomenon forces diverse suppliers to be resourceful and innovative in order to withstand difficult market conditions. Given this reality, E&C organizations should invest even more heavily in supporting supplier diversity programs. However, supplier diversity activity may be reduced as organizations recalibrate key initiatives in the face of pandemic-fueled changes. The reason for this is due to bias. Bias is disproportionate weight in favor of or against an idea, person or thing; usually in a way that is closed-minded, prejudicial or unfair. People may develop biases for or against an individual, a group or a belief. Conscious bias, or explicit bias, refers to the attitudes and beliefs held about a person or group on a conscious level. Unconscious bias, also known as implicit bias, refers to the attitudes or stereotypes that affect understanding, actions and decisions in an unconscious manner. It is a bias that happens automatically and is triggered by the human brain, making quick judgments and assessments of people and situations \u2013 also influenced by background, cultural environment and personal experiences. Biases within an organization create missed opportunities when people make decisions that are not objective and potentially contribute to a distrustful culture that will rob it of competitive advantage. An example of unconscious bias in a supplier diversity context is dismissing new solutions to problems because they do not fit the typical way solutions are presented. A study done by The Hackett Group shows that procurement organizations that embrace supplier diversity are able to generate up to 133% higher return on their investments versus organizations that don\u2019t. Organizations that do not have a robust supplier diversity program are missing opportunities to strengthen their overall brands with customers. A recent study done by Hootology, using its Supplier Diversity Impact Indicator (SDII), found that among those who are aware of UPS\u2019s supplier diversity initiatives, they are 86% more likely to use UPS\u2019s services than those who are not aware. The key question to ask is how companies can reduce the impact of unconscious bias that could limit the focus on supplier diversity in organizations? In particular, what is the best approach to address biases that limit an organization\u2019s ability to make sound business decisions, particularly in the area of supplier diversity? The first thing that must be done is to make the unconscious, conscious through education. It is critical to help members of an organization develop a mindset shift that embraces identifying and understanding biases so that they can be confronted and addressed. Next, the organization must examine the policies, practices and structures that cultivate bias. This systemic evaluation is not a one-time initiative, but rather, an ongoing process. 4 Steps to Confront Unconscious Bias in Supplier Diversity Gather Facts The key element of eliminating bias is to make data-based decisions rather than relying on gut, intuition or conjecture. This is particularly important when evaluating relationships with diverse suppliers. This requires creating a process that allows relationships with diverse suppliers to be measured like any other partnership. This should go beyond tracking diverse supplier spend and the number of relationships in order to evaluate the true relationship impact. Key metrics that should be evaluated include: Cost savings realized through the partnership New revenue opportunities created via partnership New ideas created through the partnership Engagement of the partner within organization When data is collected on the success of supplier diversity that is at this level of depth, there is a much better connection to business value. Create a Structure for Evaluating the Supplier Diversity Program Define clear criteria to evaluate the merits of diverse supplier relationships and use them consistently. Using consistent standards can help to reduce bias. For example, create a supplier diversity partnership guide that can be used to objectively evaluate the organization\u2019s current program and the effectiveness of all current and prospective suppliers\u2019 relationships. WEConnect International has developed a tool that includes the following elements to guide program evaluation: Policy Assessment Planning Processes and Standards Measurement, Tracking and Reporting Accountability Be Mindful of Subtle Cues When meeting with diverse suppliers or attending recruiting events, be sure to be fully engaged. Invite diverse suppliers to events where all suppliers or partners are present including after-hours events. Be sure that communications who are sent to partners are also sent to diverse suppliers. This intentional inclusion will help to create higher levels of engagement with diverse suppliers and increase the likelihood of success. Foster Awareness In day-to-day interactions, be sure to hold yourself\u2014and your colleagues\u2014 accountable. The key to identifying blind spots is to raise questions and opinions when key decisions are being made. For example, Google created a \u201cbias busting checklist\u201d to eliminate snap decisions and mitigate the consequences of unfair judgements. This same approach can be applied to interactions with diverse suppliers. When evaluating supplier diversity performance and putting together interventions to help build capacity, here are few questions or areas to address to identify blind spots in evaluation: Consider concrete examples of performance throughout the evaluation period Consider situational factors that affected performance (e.g. lacked access to resources or information) Consider if rating would change if supplier was in different cultural group Be an advocate for diverse suppliers in which you are invested What Can Diverse Suppliers Do to Counteract Unconscious Bias? While supplier diversity is increasing in importance for many organizations, diverse suppliers are continuing to experience challenges in getting connected to companies. In a recent report by CVM Solutions, diverse suppliers described challenges navigating portals and the application process required by many organizations. This creates resistance when trying to identify and pursue new opportunities. The report also highlighted the benefits that supplier diversity can deliver to partner organizations \u2013 workforce impact and interaction, supply chain impact, and ultimately increasing the diversity of the partner\u2019s workforce. The next installment of this series will highlight an organization that has counteracted unconscious bias to create success.\", \"US English Male\");\n                }\n            };\n        <\/script>\n     <\/br><br \/>\n<em>This article first appeared in American DBE Magazine&#8217;s <a href=\"https:\/\/issuu.com\/americandbemediakit\/docs\/american_dbe-summer2020?fr=sZWFkZjE3ODgyMDc\" target=\"_blank\" rel=\"noopener noreferrer\">Summer 2020 Issue<\/a> (page 16).<\/em><\/p>\n<p class=\"p1\">The impact of COVID-19 has fundamentally shifted the business landscape, causing growing uncertainty for most industries; and the engineering and construction (E&amp;C) marketplace is not exempt. While projects are beginning to come back online, construction managers are struggling to fill jobs. Contractors are experiencing challenges in accessing a steady labor force due to growing fear among workers of contracting the virus. Many employees receiving unemployment benefits feel that coming back to work does not make financial sense given the uncertainty of future wages. Numerous projects are being delayed, leading to challenges with cash flow and payments to employees and contractors.<\/p>\n<p class=\"p1\">In addition, construction managers are dealing with an uptick in internal human resources disputes involving the general workforce, craftsperson or subcontractor due to increasing uncertainty related to health, safety and the COVID-19 recovery timeline. With the rise of workplace tension, it is inevitable that the impact of bias will begin to impact the prospects of diverse suppliers. History shows that diverse suppliers experience the brunt of economic shifts as access to capital tightens. This phenomenon forces diverse suppliers to be resourceful and innovative in order to withstand difficult market conditions. Given this reality, E&amp;C organizations should invest even more heavily in supporting supplier diversity programs. However, supplier diversity activity may be reduced as organizations recalibrate key initiatives in the face of pandemic-fueled changes. The reason for this is due to bias.<\/p>\n<p><a href=\"https:\/\/thediversitymovement.com\/library\/%20\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone wp-image-8876 size-large lazyload\" data-src=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A-1024x341.png\" alt=\"TDM Library: your one-stop-shop for update, expert DEI Resources. Explore the platform with a free trial. Click here to learn more.\" width=\"1024\" height=\"341\" data-srcset=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A-1024x341.png 1024w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A-600x200.png 600w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A-300x100.png 300w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A-768x256.png 768w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/04\/NEW-TDM-Library-Display-Ad_Large-A.png 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/341;\" \/><\/a><\/p>\n<p class=\"p1\">Bias is disproportionate weight in favor of or against an idea, person or thing; usually in a way that is closed-minded, prejudicial or unfair. People may develop biases for or against an individual, a group or a belief. Conscious bias, or explicit bias, refers to the attitudes and beliefs held about a person or group on a conscious level. Unconscious bias, also known as implicit bias, refers to the attitudes or stereotypes that affect understanding, actions and decisions in an unconscious manner. It is a bias that happens automatically and is triggered by the human brain, making quick judgments and assessments of people and situations \u2013 also influenced by background, cultural environment and personal experiences.<\/p>\n<p class=\"p1\">Biases within an organization create missed opportunities when people make decisions that are not objective and potentially contribute to a distrustful culture that will rob it of competitive advantage. An example of unconscious bias in a supplier diversity context is dismissing new solutions to problems because they do not fit the typical way solutions are presented. A study done by The Hackett Group shows that procurement organizations that embrace supplier diversity are able to generate up to 133% higher return on their investments versus organizations that don\u2019t.<\/p>\n<p class=\"p1\">Organizations that do not have a robust supplier diversity program are missing opportunities to strengthen their overall brands with customers. A recent study done by Hootology, using its Supplier Diversity Impact Indicator (SDII), found that among those who are aware of UPS\u2019s supplier diversity initiatives, they are 86% more likely to use UPS\u2019s services than those who are not aware.<\/p>\n<p class=\"p1\">The key question to ask is how companies can reduce the impact of unconscious bias that could limit the focus on supplier diversity in organizations? In particular, what is the best approach to address biases that limit an organization\u2019s ability to make sound business decisions, particularly in the area of supplier diversity? The first thing that must be done is to make the unconscious, conscious through education. It is critical to help members of an organization develop a mindset shift that embraces identifying and understanding biases so that they can be confronted and addressed. Next, the organization must examine the policies, practices and structures that cultivate bias. This systemic evaluation is not a one-time initiative, but rather, an ongoing process.<\/p>\n<h4 class=\"p1\">4 Steps to Confront Unconscious Bias in Supplier Diversity<\/h4>\n<p>&nbsp;<\/p>\n<h5>Gather Facts<\/h5>\n<p class=\"p1\">The key element of eliminating bias is to make data-based decisions rather than relying on gut, intuition or conjecture. This is particularly important when evaluating relationships with diverse suppliers. This requires creating a process that allows relationships with diverse suppliers to be measured like any other partnership. This should go beyond tracking diverse supplier spend and the number of relationships in order to evaluate the true relationship impact. Key metrics that should be evaluated include:<\/p>\n<ul>\n<li class=\"p2\">Cost savings realized through the partnership<\/li>\n<li class=\"p2\">New revenue opportunities created via partnership<\/li>\n<li class=\"p2\">New ideas created through the partnership<\/li>\n<li class=\"p2\">Engagement of the partner within organization<\/li>\n<\/ul>\n<p class=\"p4\">When data is collected on the success of supplier diversity that is at this level of depth, there is a much better connection to business value.<\/p>\n<h5>Create a Structure for Evaluating the Supplier Diversity Program<\/h5>\n<p class=\"p1\">Define clear criteria to evaluate the merits of diverse supplier relationships and use them consistently. Using consistent standards can help to reduce bias. For example, create a supplier diversity partnership guide that can be used to objectively evaluate the organization\u2019s current program and the effectiveness of all current and prospective suppliers\u2019 relationships. WEConnect International has developed a tool that includes the following elements to guide program evaluation:<\/p>\n<ul>\n<li class=\"p2\">Policy Assessment<\/li>\n<li class=\"p2\">Planning<\/li>\n<li class=\"p2\">Processes and Standards<\/li>\n<li class=\"p2\">Measurement, Tracking and Reporting<\/li>\n<li class=\"p2\">Accountability<\/li>\n<\/ul>\n<h5>Be Mindful of Subtle Cues<\/h5>\n<p class=\"p1\">When meeting with diverse suppliers or attending recruiting events, be sure to be fully engaged. Invite diverse suppliers to events where all suppliers or partners are present including after-hours events. Be sure that communications who are sent to partners are also sent to diverse suppliers. This intentional inclusion will help to create higher levels of engagement with diverse suppliers and increase the likelihood of success.<\/p>\n<h5>Foster Awareness<\/h5>\n<p class=\"p1\">In day-to-day interactions, be sure to hold yourself\u2014and your colleagues\u2014 accountable. The key to identifying blind spots is to raise questions and opinions when key decisions are being made. For example, Google created a \u201cbias busting checklist\u201d to eliminate snap decisions and mitigate the consequences of unfair judgements. This same approach can be applied to interactions with diverse suppliers. When evaluating supplier diversity performance and putting together interventions to help build capacity, here are few questions or areas to address to identify blind spots in evaluation:<\/p>\n<ul>\n<li class=\"p2\">Consider concrete examples of performance throughout the evaluation period<\/li>\n<li class=\"p2\">Consider situational factors that affected performance (e.g. lacked access to resources or information)<\/li>\n<li class=\"p2\">Consider if rating would change if supplier was in different cultural group<\/li>\n<li class=\"p2\">Be an advocate for diverse suppliers in which you are invested<\/li>\n<\/ul>\n<h4 class=\"p1\">What Can Diverse Suppliers Do to Counteract Unconscious Bias?<\/h4>\n<p>While supplier diversity is increasing in importance for many organizations, diverse suppliers are continuing to experience challenges in getting connected to companies. In a recent report by CVM Solutions, diverse suppliers described challenges navigating portals and the application process required by many organizations. This creates resistance when trying to identify and pursue new opportunities. The report also highlighted the benefits that supplier diversity can deliver to partner organizations \u2013 workforce impact and interaction, supply chain impact, and ultimately increasing the diversity of the partner\u2019s workforce. The next installment of this series will highlight an organization that has counteracted unconscious bias to create success.<\/p>\n<p><a href=\"https:\/\/thediversitymovement.com\/library\/%20\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"alignnone size-large wp-image-8041 lazyload\" data-src=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A-1024x85.png\" alt=\"Display ad for TDM Library. Text says &quot;Find more content like this in TDM Library. Start my free trial&quot;\" width=\"1024\" height=\"85\" data-srcset=\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A-1024x85.png 1024w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A-600x50.png 600w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A-300x25.png 300w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A-768x64.png 768w, https:\/\/thediversitymovement.com\/wp-content\/uploads\/2023\/03\/TDM-Library-Footer-Ad-A.png 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/85;\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This article first appeared in American DBE Magazine&#8217;s Summer 2020 Issue (page 16). The impact of COVID-19 has fundamentally shifted the business landscape, causing growing uncertainty for most industries; and15<\/p>\n","protected":false},"author":2,"featured_media":1486,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,5],"tags":[69],"tdm_type":[92],"class_list":["post-1484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supplier-diversity","category-blogs","tag-bias","tdm_type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Addressing &amp; Managing Unconscious Bias | The Diversity Movement<\/title>\n<meta name=\"description\" content=\"Unconscious bias - also known as implicit bias - refers to the attitudes or stereotypes that affect understanding, actions &amp; decisions in an unconscious manner. 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This article provides 4 steps to better address and manage unconscious bias.\" \/>\n<meta property=\"og:url\" content=\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/\" \/>\n<meta property=\"og:site_name\" content=\"The Diversity Movement\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/thediversitymovement\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-20T18:31:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-12T22:00:27+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/live-diversitymovement.pantheonsite.io\/wp-content\/uploads\/2020\/08\/Screen-Shot-2020-08-20-at-2.27.18-PM.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1678\" \/>\n\t<meta property=\"og:image:height\" content=\"932\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Walk West\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Walk West\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/#article\",\"isPartOf\":{\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/\"},\"author\":{\"name\":\"Walk West\",\"@id\":\"https:\/\/thediversitymovement.com\/#\/schema\/person\/96226c18fc3fda99e138ea5726960e51\"},\"headline\":\"Addressing Unconscious Bias in Supplier Diversity\",\"datePublished\":\"2020-08-20T18:31:03+00:00\",\"dateModified\":\"2023-12-12T22:00:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/\"},\"wordCount\":1188,\"publisher\":{\"@id\":\"https:\/\/thediversitymovement.com\/#organization\"},\"image\":{\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2020\/08\/Screen-Shot-2020-08-20-at-2.27.18-PM.png\",\"keywords\":[\"Bias\"],\"articleSection\":[\"Supplier Diversity\",\"x Blogs\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/\",\"url\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/\",\"name\":\"Addressing & Managing Unconscious Bias | The Diversity Movement\",\"isPartOf\":{\"@id\":\"https:\/\/thediversitymovement.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/#primaryimage\"},\"image\":{\"@id\":\"http:\/\/live-diversitymovement.pantheonsite.io\/addressing-unconscious-bias-in-supplier-diversity\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/thediversitymovement.com\/wp-content\/uploads\/2020\/08\/Screen-Shot-2020-08-20-at-2.27.18-PM.png\",\"datePublished\":\"2020-08-20T18:31:03+00:00\",\"dateModified\":\"2023-12-12T22:00:27+00:00\",\"description\":\"Unconscious bias - also known as implicit bias - refers to the attitudes or stereotypes that affect understanding, actions & decisions in an unconscious manner. 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