Small business

In the ever-changing world of buying things for the government, supporting diversity in suppliers is not just something you have to do; it’s a promise to include everyone and boost the economy. Jonathan R. Butler, Director, Prince George’s County, Maryland, Office of Central Services, recently shared with SAP Executive Think Tank Community members his view and experience on this topic!  He talked about the strategies they used to be successful in making sure they work with a diverse group of suppliers. Let’s look at the important ideas and actions that helped Prince George’s County go beyond their goals and set new standards.

Prince George’s County, a big area next to Washington, DC, had a hard time in the past meeting goals for working with diverse suppliers. Even though they had a mix of people and a busy business community, they were consistently not meeting the targets they were supposed to.

The Six-Step Plan:

1. Making Rules:

The project team together with partners did a big study for eight years (2010-2018) to find out where there were problems in the utilization of certain business classifications. Then, they used this info to make new laws so that 50% of the county’s small businesses could take part, and they made it easier for businesses to get help with bonding.

2. Using Technology to Help:

Today it is almost impossible to do a successful project without automation!  So, the team set up an online system for certification and following the rules. This made it 60% faster for small and minority businesses to get certified. For the procurement process, Prince George’s County started using the Strategic Purchasing and Efficient Evaluation Domain (SPEED)  based on the SAP Ariba  Platform, and it got rid of 99% of the old way of doing things with paper.

3. Bringing Opportunities Together:

Another digital innovation was a platform called the Green Book. This connects small and minority businesses directly with opportunities to work with the county.

4. Getting Stronger:

A big part of any project – is education and Jonathan with his team decided to launch the Mentor-Protégé Program with 26 approved Protégés, 17 approved Mentors, and 10 approved Mentor-Protégé Teams. Here experienced businesses helped smaller ones get better at money, technology, and doing good work.

5. Smart Buying for Diversity:

Proper planning is one of the reasons for success! So, in this project, Prince George’s County set up plans for buying hundreds of things from diverse suppliers at the main contracting level.

At the same time, programs for quick construction jobs were started, making it easier and faster for diverse suppliers to get involved. As a result – prime contract awards placed with County-based small and minority businesses increased by 100%

6. Reaching Out:

My opinion is that any project will be not 100% successful without good communication and PR.  I remember a funny lesson from my marketing professor at university. She told to us, that if the husband would like to present flowers to his wife, he has to talk about the present in advance for a couple of days, then present flowers and after two–three days remind her about the present again. As a result – the husband will triple the effect using one positive moment only!

So, what I like in Prince George’s County’s project, is that the team did a huge job with communication! They organized over 100 events, like meetings, webinars, expos, and workshops, all aimed at small and minority businesses.

The Results

The strategies the team used had great results. In the year 2022, spending with small businesses went up to 38.2%, which is more than the 30% goal. Spending with minority businesses reached 31%, beating the 20% goal. This was a big improvement over the past four years, showing that taking clear and strong steps works well in supplier diversity.

In the end, Jonathan Butler summarised his and his team’s experience with the next tips:

– Make rules based on good studies.

– Use technology to make things easier.

– Bring together opportunities for small and minority businesses.

– Help businesses get better through mentor programs.

– Use smart strategies for buying things.

– Organize events to reach out to small and minority businesses.

Prince George’s County shows us that if you mean it and take strong actions, you can make a big change in working with diverse suppliers. As organizations deal with changes in how they buy things for the government, following these strategies can lead to a stronger, more inclusive business community and boost the region’s economy.