Robert Johnson takes on the status quo, urges MBEs to think bigger

If nothing else, Robert Johnson is savvy. Best known for founding and crafting BET (Black Entertainment Television) in 1979, he perceived, ahead of the crowd, that the emerging prominence of urban style, music and culture would make good television. His 20/20 foresight paid big dividends when he sold BET to Viacom for $3 billion in 2000. Three years later, he put up $300 million to launch the Charlotte Bobcats, an NBA expansion team.

An empire his way

In addition to being majority owner of the Bobcats, Johnson reigns over Bethesda, Md.-based RLJ Companies, which owns or holds interest in a Toyota dealership and a slew of hospitality, film production, real estate, sports, financial and media companies.

Like most anyone who has built an empire, Johnson has a few opinions that sometimes spark controversy. During his keynote address at Toyota’s Opportunity Exchange luncheon, he eagerly shared his perceptions on the state of diversity in the 21st century. He first took issue with the requirement that a business be 51 percent minority-owned in order to be certified as minority-owned.

“It’s a political decision and an archaic rule. It only benefits the gatekeepers. It doesn’t benefit anyone else,” Johnson maintained, offering a reason for his viewpoint: “If a buyer says he needs a bigger MBE supplier, then that MBE must take on debt or sell equity, but selling equity means you go below 51 percent unless that equity is sold to another minority. Does that mean you’re not worthy all of a sudden? That extra capital will help you, but it gets you kicked out of the club!

“So why should we be locked into this 51-percent notion,” he continued. “It has no bearing economically. Question it.”

Then get back to work

Despite taking umbrage with the 51- percent rule, Johnson praised Toyota and other companies for developing and maintaining their diversity initiatives and asked, “Why should they do it? Why do we need a diversity conference in this country?”

He explained that, even after 200 years of being denied access to financial and educational opportunities in this country, minorities fell behind in access to money, education and opportunities.

“During the Oklahoma land rush, oil rights negotiations and land and timber rights talks, we weren’t at the table. We got left behind,” he said. “But then we won the right to vote, eat lunch at the counter and own a home. We achieved social-political rights, but not economic rights. And that’s why we need diversity initiatives in this country.

“It’s also because there are very talented African Americans,” Johnson said, addressing the Tier I representatives in the audience.

“Not all talent is found in the people you already do business with. Seek out new talent.” He then turned his attention to the MBEs. “If I’m a minority company,” Johnson said, “maybe I should look at merging with another minority company and then creating four sustainable growth companies, or become a Tier I company.

“MBEs, position yourselves to become prime suppliers,” he urged. “Knock down operating costs. It may mean that you can’t have huge paychecks for a while or a cousin on the payroll who doesn’t do anything.

“If we run our businesses so that we can compete against anyone, then we stop thinking of ourselves as needing a handout or even needing minority-owned certification,” Johnson said. “Don’t manage yourself as a minority business, but as a sustainable growth company. Eliminate the notion that you’re somehow less capable than anyone else. Change the politics of minority to the economics of opportunity.”