Thank You, Richard Chacon
When someone important in your life pivots for something new, you take notice. And when that someone retires from the activity of calendars packed with meetings, weekly business travel, speaking engagements across the country, and two mobile phones because one is not enough, you really take notice.
My first encounter with Richard solidified my notion that he was one of the folx who hold important positions and who truly cared about matching the right small businesses with Union Bank – those that had the capacity to support a Fortune 100 company, had the business savvy to hold space with corporate colleagues, and provided a stellar product or service. No small task, but Richard had an eye for that type of small business and entrepreneur and once he found them, he did everything he could to support them.
How do I know? Because he did that for me in 1997 when I started my first company, and again when I co-founded my second firm in 2012.
We recently sat down for coffee and I asked him a few questions.
How did you land in the work of supplier diversity?
During my employment with Pacific Telephone, I was promoted from Customer Service Representative to Warehouse Supervisor, and ultimately to Supplier Diversity Manager servicing the Southern California area. In my role as Warehouse Supervisor, I frequently interacted with suppliers that provided telephone equipment. Other than those interactions, I had no other formal supplier diversity training because it didn’t exist.
Why did you decide to build your career in supplier diversity? What's gotten you out of bed excited about what the day holds?
I experienced racism for the first time during my senior year of high school. I was on a dinner date with my Black girlfriend. Our waitress refused to serve us, and I didn’t understand why. My girlfriend knew and she explained why we were not being served. That incident followed me over the next ten years in the U.S. Army, where I witnessed racism to the extreme.
From day one in this work, I’ve focused on assisting BIPOC-, women-, veteran-owned businesses as well as those owned by people with disabilities, in the challenges they face in building wealth for themselves, their families and their communities.
Over the following 48 years, I was employed by six major corporations focusing on their supplier diversity initiatives. During that time, each morning when I got out of bed, I attempted to assist at least one company in growing their business.
ENTREPRENEURS
On too many occasions to count, you have keynoted at entrepreneurial events. What are the top 3 messages you share with them as they pursue financially beneficial relationships with corporations?
First, know the strengths and weaknesses of their companies and of themselves as leaders. To be competitive and to continue to grow, you must understand and address your weaknesses with short- and long-term solutions and promote your strengths.
Second, understand the corporate risk assessment process. The due diligence process used by many corporations to assess potential suppliers can include:
Financial risk
Reputational risk
Cybersecurity risk
Operational risk
Regulatory and compliance risk
Third, nail your 30-second elevator pitch. Sadly, the supplier diversity advocates you meet at a networking events are typically a one-person operation with limited time to interview you.
Can you share a story of a "win" where you advocated for a diverse supplier, and you were able to get them engaged with your organization?
Twenty-two years ago, I met a Black female entrepreneur that so impressed me in our first meeting that my company offered her a scholarship to attend the Management Development for Entrepreneurs program, at the Anderson School of Management program at UCLA. She graduated, signed a small regional contract which grew to a state-wide relationship with our company, eventually leading to a national presence in her field. She joined our Community Advisory Board and her firm’s client portfolio includes several Fortune 500 Corporations.
What are the traits that you look for in entrepreneurs that indicate the best chance for their success?
Do they provide a solution that corporations are looking to source?
Are they cost competitive which means within an acceptable price point compared to their competition? Never low-ball to get the contract.
Can they meet our risk assessment criteria?
Do they have at least three years of positive business results?
"It’s important for entrepreneurs to join and participate in advocacy organizations. There is power in numbers and once there, network."
Many small businesses are truly too small to win a corporate contract. What advice do you share with them about other ways to advance their business goals?
I recommend that small businesses form alliances with other small businesses. This often extends the product/service offerings and expands production capacity. If forming an alliance isn’t an option, I suggest focusing on peer organizations as clients. The possibilities are nearly endless if the firm offers critical/necessary services.
Another way to grow is by considering sub-contracting with larger firms. This provides an entrée to larger contracts with larger companies, opportunities that may not otherwise be available.
What would you say to aspiring entrepreneurs about the path to success?
It’s important for entrepreneurs to join and participate in advocacy organizations. There is power in numbers and once there, network. This is their chance to bring new relationships to life. And don’t let networking stop there. Joining organizations specific to their product or service and seeking leadership roles gains visibility and earns trust.
Finally, it’s important to know that once they’ve made their pitch to a potential client, make sure to follow-up. They are likely one of many firms vying for the attention of buyers. Following up is a solid business development process. However, understand that a “no response” may be a silent “no” so don’t become a stalker. If they run into the potential client again, a gentle reminder of who they are and their recent correspondence is good.
CERTIFICATION ORGANIZATIONS
Over the years, you've served on a number of Boards that certify small businesses in their pursuit of corporate contracts. Why has this been important for you?
Many corporations require that small businesses be certified so if in fact a firm meets a specific need of a corporate client, they are better prepared to commence a relationship. However, if firms don’t meet the corporation’s requirements, the certification can be used for marketing purposes.
Serving on the Boards of these organizations allows me a seat at the table where important decisions are made and where new initiatives are ratified that ultimately aid in advancing small businesses.
Finally, working with peers and peer institutions helps ensure the understanding of opportunities and challenges in achieving our organization’s supplier diversity goals. It’s also a place where professionals who are newer to the field can benefit from those of us who have been here for a longer period of time.
"If you're interested in succeeding in the field of supplier diversity, find a mentor, stay connected, learn best practices, and find allies inside your organization."
SUPPLIER DIVERSITY
What are some of the challenges facing supplier diversity professionals in achieving stated goals of increasing the use of BIPOC-, women-, veteran-owned businesses as well as those owned by people with disabilities?
With myriad challenges facing executive management teams, gaining the attention and sustained commitment from them can be problematic. Also, the partnership with an organization’s purchasing department is critical to successful execution. Their buy-in and collaboration in setting goals is foundational to supplier diversity initiatives. Finally, resource allocation – people, budget and technology – can hinder progress.
Describe the collaboration needed among supplier diversity professionals to address disparities in the ecosystem of vendor-supplier relationships?
There are contenders and pretenders. Collaborate with the contenders and hope that the pretenders find their way.
What would you say to someone who is interested in entering the field of supplier diversity?
Find a supplier diversity mentor and stay connected. Learn best practices from them which will help generate new and innovative ways to advance the work.
Inside your organization, find allies who will endorse the need for a stated and sustained commitment from leadership. The struggle is real and a network of allies from across the organization will aid in their success.
MENTORING
You have coached and mentored business owners for many years. I count myself as one. What gets you excited about this role and what challenges you in it?
Unfortunately, many of the challenges I was faced with, along with diverse businesses, 48 years ago still exist. Overcoming those challenges is the ultimate rush.
My passion is in minimizing these challenges with fact-based solutions. Success can be measured in many ways and helping business owners grow and prosper is why I’ve done this work for so long. Watching entrepreneurs gain a better grasp on how to lead their organizations and gain skills that they don’t have lets me know that the efforts I’ve made are showing up in increased revenue, innovation, and financial sustainability.
LOOKING FORWARD
As you look back over your body of work and influence, what are some of the things that make you most proud?
I am proud of the many ways that I’ve educated colleagues on the merits, and unfortunately, the need for a supplier diversity initiative. We’ve come a long way yet have a long way to go to reach the levels of equity deserved by all entrepreneurs seeking to build businesses that support their families, communities and beyond.
I’m proud of increasing the sponsorship level in support of the Anderson School Management Development for Entrepreneurs (MDE) program at UCLA. This program works to strategically identify and address the gaps in the products and services participating suppliers provide.
I’m hearing education as a theme as I answer this question! So let me end with my pride in establishing and implementing a curriculum for a small business growth initiative that continues to demonstrate positive results. There are many growth improvement initiatives for suppliers with greater than $1 million in revenue. Very few can be found for small businesses with less than $1 million in revenue.
What would you like your peers in supplier diversity to remember most about you?
I was a contender, never a pretender and I will always remain a resource to and for them.
"I will never stop giving back."
What's next for you?
Faced with the challenges of a world that should not need supplier diversity initiatives, I will continue to be an advocate for all suppliers, regardless of who they are. I will never stop giving back.
Richard, may retirement give back to you in the same generous way that you’ve given to the small business and supplier diversity community! We are grateful.