B2B, Pan Am Games and Diversity

This past week the 2015 Pan Am Games (to be held in Toronto) organizers announced that bidders for contracts for the games (from construction to concessions and everything in between) will be required to demonstrate that they will involve businesses and employees from traditionally under-represented ethnic communities. Read more about the story in the Globe and Mail here.

This isn't actually a new idea, although extending such a plan to all bidders is new. Following on the trend of such international events requiring bidders and contracts to be awarded with marks for environmental sustainability (such as those for the Vancouver Olympics) the trend of supporting "minorities" or other diverse groups is growing. The London Olympics has a diversity strategy when it comes to supply chain and now the next logical step is being taken by Toronto's Pan Am Games organizers.

But is this a good thing? Will the imposition of "quotas" on contract bidders actually support diversity or simply support less capable vendors/companies?

Ian Troop, CEO of the Toronto Pan Am Games made some comments addressing this which I found striking. He said,

We’re not showing any favouritism to anybody. We’re saying to employers, "Recognize the reality of the marketplace and community we live in... This is a level playing field and a meritocracy. The cream will rise to the top."

Hey, that sounds kind of familiar to me! As I have said many times before, "You should only hire the best candidate. But make sure you are looking at everyone". I am glad to see I am not the only one who thinks this way.

Diversity strategies aren't about doing what is "right" or what is "politically correct", they are about doing what is actually best from a pure business standpoint. Quotas aren't about promoting inferior candidates or in the Pan Am Games example inferior companies, past their competency. Quotas or requirements are about making sure that diverse candidates or organizations aren't being cut out of the process due to inherent biases in it. If all contracts are awarded and hires are made simply on the basis of who has done it before, who is best connected with my network or who I feel I personally relate to the most, you will be leaving large groups of possible candidates and companies out in the cold. The result of that being that what you are ending up with right now is inferior to what you could have.

Companies who "get it" when it comes to diversity already know this. It's why they are committed to a diversity strategy that embraces the full process, from employment branding, to candidate sourcing, to hiring and onboarding. But this story is about an even more immediate reward for companies still on the fence, namely that by increasing the diversity of your organization you can win more business.

As someone as familiar with the sales process as I am I can tell you that any advantage you have over your competition when it comes to selling your company is a good thing. The inverse is also true; lacking an advantage a competitor has can put you at a severe disadvantage. The growing amount of RFPs and bidding outlines with diversity as an integral component of the process mean that if you don't have a diversity strategy for your organization you're being left behind.