BMO Financial Group is leading the way in expanding Canada’s awareness of supplier diversity

From filling in certification forms for her own family’s business to developing new programming creating a supplier diversity initiative for Chicago’s largest south-side employer, KC Mosley, who heads up BMO Financial Group’s Office of Supplier Diversity Procurements & Strategic Sourcing, has cut her teeth on developing successful supplier diversity experiences. As BMO Financial Group grows its own in-house programming and its spheres of influence, her experience is not only helping the Bank navigate a strategic course to success with supplier diversity in Canada, but also contribute to the increase of overall supplier diversity competence within the corporate marketplace.

“It’s been very clear since the beginning that in Canada there are differences, and that to be successful in Canada we have to capitalize on what is uniquely Canadian,” Mosley states. Though the Bank has a thriving diversity program in the US, the organisation is not trying to simply export their US programs. Instead, they are working with the diversity culture in Canada to create supplier diversity programming that generates a continuous improvement culture for partner suppliers and the bottom line.

Appreciating Canada’s Unique Diversity Culture

There is no doubt that the diversity culture in Canada is unique. Known as a multi-cultural nation, Canada uses human rights legislation as its platform for workplace diversity and supplier diversity alike. Companies have to self-disclose minority status, and quotas or mandates for getting contracts do not exist.

While programming for aboriginals is not new -- for years the federal government has had a program for aboriginal suppliers – expanding the concept for the inclusion of other visible minorities and women is still in its infancy.

As a result, supplier diversity programming for aboriginal firms and visible minorities is a relatively new concept. In particular, some of the Tier 2 programming that is robust in the States is almost completely absent in Canada.

While BMO operates on both sides of the border and sometimes uses firms from one country to supply needs in another, the bank’s goal is to find the best suppliers regardless of where those businesses are headquartered. Thus the framework for BMO’s supplier diversity program is based around an expanded classification of diverse suppliers in order to broaden the pool it has access to.

Making Strategic Choices

To help manage these differences and provide for strong growth in the diversity space, BMO has been very strategic. “What causes us to stand out in a leadership role in the Canadian landscape is that we are building an infrastructure and set of practices that are integral to our sourcing process and our strategy is based on our overall corporate objectives,” states Mosley. “As the bank that wants to define great customer experience, it’s imperative that we remain sensitive to and cognizant of how we work with the businesses in the various communities we serve, even though we may implement our best practices differently between the US and Canada depending upon local ways of doing business and the emerging maturity of the supplier movement overall.”

As an example, Mosley references BMO’s status as the first company in Canada to utilize supplier diversity questions in their RFP. Building on that, BMO included an offer to provide more information, opening the door for additional opportunities to explore supplier diversity with potential partners.

The company also makes a point of using National Minority Supplier Development Council (NMSDC) best practices as a foundation for its strategic implementation throughout the organization. BMO tracks metrics for its programs individually for each goal, trains and communicates internally and externally on supplier diversity issues, and is an active networker and mentor in the diversity space in Canada. The goal is continuous improvement on its programs, which the company considers to be works-in-progress.

Spreading the Word

Another endeavour is spreading the word about the power and potential of supplier diversity programming in Canada. Compared to the mindset in its US operations, BMO is primarily driven by focusing on the makeup of the workforce. Having advanced workforce diversity initiatives are widespread, but the notion of the diversity of business ownership has not been part of the discussion until recently. In fact, the idea of diverse ownership often comes as a real “ah ha.” As a result, many diverse suppliers fly under the radar, and many opportunities are missed.

To help get the word out, BMO participates in a number of public platforms for diversity. The bank is a founding board member of WEConnect Canada and an active member of the Canadian Aboriginal and Minority Supplier Council (CAMSC), where Mosley sits on the Education Committee Board.

“As a leader in this arena, we feel a sense of responsibility, and we gladly provide support when called upon. We are very excited about having a leadership position and continue to strive in that regard, says Mosley.

Finding the Right Partners for the Future

The component of diversity programming that can’t be overlooked is finding the right partners and the right value proposition. “We believe that our approach to supplier diversity is effective because it demonstrates that we get the best quality, that we’re getting a fair price, and that we’re doing it in a way that strengthens our supply chain,” says Mosley. The right partners bring creativity, innovation, and the ability to make a difference in the bottom line.

Although BMO doesn’t have a formal mentoring program for businesses, the bank does help to develop its diverse suppliers further with consultative insights, and by introducing suppliers to other areas of the bank. “BMO as a corporation has been very good to deal with relative to other large corporations in our experience,” states Michael Low, President of Symbiotic Group, Inc. “It is clear that in addition to a high level of executive awareness about supplier diversity there is also commitment.”

BMO’s nascent mentoring program presently focuses around business acumen, in terms of sharing information about the internal processes and what is required to meet the bank’s needs. Leonard Jean-Pierre, President of Team Recruiter, says that BMO has been critical in the growth and development of his organization. “ In 2010 we experienced 275% growth and BMO/Harris played a critical contribution in that increase,” notes Jean-Pierre.

“We’re providing the kind of support that helps to begin to level the playing field by sharing more inside information about how to do business with us,” says Mosley. There are also programs from outside the diversity space that the bank offers to help Canadian businesses succeed, such as its proprietary Business Coach Series that helps owners operate their businesses more effectively.

Mosley is a strong proponent of certification because she believes it can be a critical tool both in helping organizations identify diverse suppliers and just as importantly in providing diverse businesses with access to corporate supply chains. Certification databases supplied through advocacy organizations are generally the first to stop for corporations looking for diverse suppliers. However, she acknowledges that, in Canada, it is a challenge to get companies to come forward and disclose their diverse ownership. “As much as this [concept of supplier diversity] is a call to Corporate Canada to hopefully become engaged and understand more, it should also be a call to diverse businesses to find out more about certification,” added Mosley.

Until then, BMO will continue its effort to get the message out about the business imperative that is supplier diversity. “We were not the first to step up in terms of getting involved in the Canadian supplier diversity initiative but when we became engaged we did that strategically, enthusiastically and on a very substantive way and then we used that leadership position to encourage and to engage others,” states Mosley. As the message continues to spread, more Canadian companies can experience all of the benefits of multicultural and gender inclusion in the supply chain.