One thing I remember from my college psychology class was the concept of cognitive dissonance. If I recall correctly, it is when there is a contradiction between what a person believes or desires their behavior to be, and what their actual behavior is. This dissonance results in frustration and stress. Last week, I spoke about the common question I hear from MBEs who are seeking to do business with corporate members. I also know that there is cognitive dissonance when it comes to our corporate community. Corporation members by their nature are large organizations with diverse goals made up of individuals with diverse agendas. Well run corporations have alignment of the organization's goals and those of the people who manage them. Supplier diversity in well managed companies is aligned with the primary goal of shareholder wealth maximization. But at the tactical level, buyers who are judged on their ability to buy at the lowest possible cost given a quality constraint tend to be extremely risk adverse decision makers and sometimes view increasing opportunities as increasing the probability of a problem of one type or another. This creates the potential for organizational cognitive dissonance. I hear this complaint from MBEs who ask does XYZ corporation walk the walk as well as talk the talk. I am convinced that our best companies and our best supplier diversity managers work tirelessly and often without appreciation, inside or outside their companies, pushing their companies in ways that the goals and aspirations of minority suppliers are in sync with the primary goal of shareholder wealth maximization. So as frustrating as corporate members get with our MBEs on the issue of their value proposition; MBEs get similarly frustrated with corporations in their struggle to resolve their internal cognitive dissonance. I believe the solution to the corporate dissonance problem is for corporations to communicate as clearly as possible to MBEs what, if any, are the real opportunities are for MBEs. To communicate clearly with MBEs in a timely fashion when they call or request information about opportunities. For corporations to encourage MBEs to get larger in order to meet their requirements, by acquisition, merger or through joint ventures. And, for corporations to educate their large suppliers to also participate by increasing opportunities for MBEs. Only by doing these things can we bring corporate members' actions closer to their ideals. I have a couch in my office and welcome new patients.
February 22, 2010
