SeaWorld is initiating a supplier diversity program based on community empowerment. The unique approach is focused on diverse supplier sustainability rather than just numbers.- By Sharon Ross
The theme of SeaWorld Parks & Entertainment is built on a blend of imagination and nature so it is not surprising that a company developing a new supplier diversity program has decided to take an imaginative approach. The strategy is to empower communities so that diverse suppliers achieve sustainability rather than just land business with the theme park company.
With seven theme parks and five water parks spread across the country, SeaWorld is gearing up to expand its diverse supplier base by developing a formal program. What sets this effort apart from others is that its focus is not on simply registering MWBEs but rather on empowering communities wherever the company operates in order to help suppliers achieve sustainability. This takes supplier diversity programs to the next level of accomplishment, and SeaWorld fully intends to assume a leadership position.
History Drives Change
Norbert Dean is the chief procurement officer for SeaWorld and is tasked with developing a supplier diversity program. To understand the challenges he faces, it is helpfulto know a little company history. SeaWorld once was owned by the Anheuser- Busch beer company, but the first SeaWorld opened in 1964, making it a 51-year old brand. Anheuser-Busch was purchased by InBev in 2008, and in 2009 the Blackstone Group bought the company. In 2012, SeaWorld executed an Initial Public Offering, and Blackstone reduced its stake which now stands at about 25 percent.
What does this have to do with developing a supplier diversity program? Dean explained the connection.
“Anheuser-Busch has a supplier diversity program, but it was built on the beer business and not on the theme park business. We have to establish a program specific to our company that we fully intend on being top tier,” he said.
What this means is that Dean is developing a program from the ground up for the company’s SeaWorld, Busch Gardens and Sesame Place brands. He is responsible for anything in the supply chain that includes sourcing, procurement, transportation and warehousing, and also for accounts payable, payroll and corporate real estate. His leadership responsibilities contribute to the unique strategy of developing community empowerment as the basis for the supplier diversity program.
The supplier diversity program is not yet fully implemented, but the work of defining the goals is in full swing. The metrics that will eventually be used to measure progress will provide real information about the impact the program is having on communities where SeaWorld operates.
“We will look at things like the overall spend in the company, but the spend will be broken down by specific community, by region, by diversity, by gender and so on,” Dean explained, adding that SeaWorld’s management wants to know if the company is having a truly positive impact on the community and is not simply counting dollars.
In fact, SeaWorld will be rolling out their new spend goals soon in addition to a corporate social responsibility platform. Along with these goals, the company will provide equal opportunities for bidding and developing successful partnership relationships. There are plenty of other opportunities, too, because running theme parks is similar to running mini-cities.
“The products and services we procure are diverse and include design services, construction services, entertainment, marketing, print, rides, maintenance, engineering, food and beverages, equipment handling, merchandise, and more,” he said. Each of these categories is seen as a possible area of supplier engagement.
Growing Toward Each Other
The expectation is that SeaWorld will develop a group of strategic suppliers who will grow with the company. The suppliers must understand how SeaWorld functions as a company, but SeaWorld will reciprocate by developing an understanding of how the supplier functions. In that way, both companies grow toward each other, and that is important to the strategy of community empowerment.
It is refreshing that SeaWorld recognizes a supplier diversity program needs nurturing. Simply establishing goals and defining policies and procedures is not enough.
“When you start out there is going to be a lot of hits and misses. As the program develops, it is important to sit down with suppliers and identify areas where we can work together to achieve better results. It is critical to regularly share information whether it is across the table or by using technology,” Dean said.
Challenging the Status Quo
The two biggest challenges that Dean faces during implementation of SeaWorld’s supplier diversity program are similar to what other companies face. They boil down to a need to challenge the status quo in order to bring in innovative suppliers capable of doing business with a large corporation.
The first challenge is getting SeaWorld’s managers who are used to working with particular suppliers to consider looking at new diverse suppliers that are untested. When managers are happy with current suppliers because they do a good job, it is difficult to convince them to consider others.
The second challenge concerns the suppliers. Suppliers bring needed goods and services to SeaWorld, but taking advantage of the opportunities is more complex than just ordering what is offered.
“Suppliers think they want to work with us and have something we need, but they discover the contract is larger than expected or meeting its requirements is more difficult than expected. They tend to falter under these circumstances,” Dean explained.
Suppliers need to think about what they are bringing to the table and what is needed to be successful.
Not a Norbert Dean Program
Though Dean is responsible for developing and implementing the supplier diversity program, he makes the point that it is not a Norbert Dean program. It is a SeaWorld Parks & Entertainment program. As such, it gets the highest level of support that begins with the CEO.
Engagement is a key goal in the Corporate Social Responsibility platform, and everyone is expected to reach for the goal.
“We are making a successful company supplier diversity program in which we strive to engage everybody who wants to be involved,” he said.
The work of the last several months is expected to bring big success to SeaWorld, suppliers and communities.
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