2008 Best in Class: Supplier Diversity - nonprofit/government
Cleveland Clinic is committed to being a diverse and inclusive organization. Considerable resources have been dedicated to building successful relationships with Northeast Ohio minority-owned businesses (MBEs).
Through policies, practices and clear staff accountability, Cleveland Clinic has demonstrated progress and success in the supplier diversity arena. Expenditures with minority vendors comprised 7.5 percent ($42 million of $559 million) of its national expenditures and 8.8 percent ($26 million of $295 million) of its regional spend. The respective national and regional averages for nonprofit and government participants in the Employers Survey on Diversity were 5.8 percent and 7.8 percent. Effective strategies include:
- The Clinic contributes to broad-based growth of minority-owned firms. MBEs that are ready in scope and scale to do business with the Clinic and MBEs that can grow to be larger vendors for the organization with mentoring and development. Cleveland Clinic uses internal programs, such as construction mentoring projects and training and development projects, and external resources such as those provided by the Commission on Economic Inclusion and its Minority Business Accelerator 2.5+ initiative, to achieve MBE growth.
- Staff attends multiple minority business events each year to meet qualified new businesses and connect them directly with appropriate decision makers at the Clinic.
- Cleveland Clinic holds two to three internal matchmakers per year to connect MBEs from a specific target spend area to supply chain managers and department staff looking for new vendors. The Clinic maintains an internal list of MBEs and requests specific lists of MBEs from area organizations for a specific opportunity.
- Two to three minority businesses are chosen annually for mentoring projects in the Division of Construction and Facilities. The mentees work with general contractors and receive ongoing feedback. Frequent updates are provided to the Office of Diversity to enhance relationship-building.
- The supply chain department provides assistance to minority vendors when needed during the bidding process and after a lost bid to increase the probability of success on the next opportunity.
- Request for Proposals (RFPs) and contracts have mandatory requirements for Tier 2 reporting. In construction, specific Tier 2 requirements include workforce goals and vendor goals. All major vendors are required to report Tier 2 spend.
“We are honored to be recognized for our efforts to increase opportunities for Cleveland’s many suppliers. Each year we have set increasingly aggressive goals and expanded programming for local, minority and female vendors. By accepting this award, we maintain our commitment to the health and economic well-being of the this community.”
Delos “Toby” Cosgrove, M.D., president and CEO, Cleveland Clinic