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assMutual is in the midst of a five-year, $150 million effort to be more inclusive in the way it procures the goods and services we need to do business. Known as supplier diversity, it means providing equity and opportunity so that diverse-owned suppliers can benefit from our spending. At MassMutual, this approach to procurement is our way to have an outsized economic impact on diverse communities. Supplier diversity can drive solutions for issues such as economic justice, workforce training and sustainability. We often call it business inclusion, and we see it as an impactful way of leveling historically uneven playing fields. How then does a venerable company such as MassMutual achieve these goals? And, how do companies aspiring to drive societal change approach a process thats essential - yet holds the potential for mediocrity and complacency? It starts with leadership. Our approach in achieving such lofty goals is collaborative in every aspect. The goals are shared - as is the work necessary to achieve them. Weve deliberately sought out diverse voices from around the company to structure this unique program. And, we are sharing the successes together, reinvesting in bigger, better efforts that broaden our reach. Servant leadership is the key to this effort. We are fortunate that our efforts are visionary and illed with a genuine, human passion for creating good in the world. Following MassMutuals example, here are four key elements of servant leadership that have created a successful program for the company:
Articulate a Vision
When he set out to revamp company-wide purchasing, Will Porter, Head of Procurement, was challenged by his team to take his efforts to the next level. We created a vision that business inclusion could address several social needs at the same time. Not only that, but we determined that wed need processes in place to not only choose diverse suppliers, but help them compete for contracts, hold them accountable for their own diversity and nurture new relationships in underserved populations, Porter said.
Engage and Listen
With leadership on board, the next step was to pull together diverse voices from around the company to guide the effort. MassMutuals sup- plier diversity team not only committed to cre- ating a steering committee to drive its efforts, but was deliberate and strategic in approaching potential steering committee members. The usual diversity stakeholders - diversity, equity and inclusion (DEI) and environmental, social, governance (ESG) - are present, but so too are colleagues from brand marketing, affiliate and advisor relations, product development, internal portfolio investments and customer segmentation strategy. Weve all been tasked to help develop performance metrics. Our input is valued. Leadership listens and reacts and adjusts based on our input.
Collaborate at Every Turn
As we work together, our conversations often continue well beyond regular meetings. We seek each other out independently as ideas arise. Weve forged relationships with one another that help us in our primary roles. Our fellow committee member Liz Roberts, director of MassMutuals Catalyst Fund, an incubator that targets diverse-owned start-ups, perhaps put it best: Theres really a clarity of purpose in this group. Being a part of it has opened an entirely new network of possibility for us. For example, knowing [my steering committee colleague] down in Nashville creates an entirely new geographic area of opportunity. She has the contacts in diverse business communities there that help us greatly expand our reach.
Create Common Goals, Share Common Successes
Key to the success of the program has been establishing a line of sight to achieving $150 million in diverse spending and beyond. Were ensuring that supplier diversity is part of every business consideration. This clear goal creates a thousand little wins, which ultimately add up to create big change. One of the greatest rewards of this committee has been how it sparks conversation and facilitates an exchange of ideas far beyond our small circle. Even in previously siloed groups, theres an increase in dialogue around diversity issues. Nearly two years in were seeing important results. The first diverse business owners enrolled in our innovative Dartmouth and Stanford business leadership program graduated this summer. The companys spend with underrepresented diverse suppliers increased by 18% year- over-year. Were building relationships in communities that weve historically underserved. The supplier diversity team participated in more than two dozen diverse business group or council presentations across the country during the first quarter of 2022. Our initial outreach to diverse financial professionals has been overwhelmingly popular, attracting hundreds of interested participants. And, our efforts to certify womens business enterprises are seeing similarly high levels of interest.
Leading Where People Want to Go
MassMutual is leading business inclusion straight from the leadership playbook. The steering committee just happens to be nearly all female. This group of extraordinary professionals, led by visionary leaders with buy-in and collaboration from the very top of the company, is accomplishing great things. Weve done this in great part because our mission, goals and desires are authentic. Authenticity is key when undertaking a task such as this. Different skillsets and experiences expand our capabilities. They drive our excellence. And collaboration makes it all happen. The servant leadership of this committee is the right kind of leadership at the right moment for the right monumental task. It is purposefully diverse, allowing for new perspectives, differing points of view and increased creativity. Our collaborative approach, one in which everyone participates, opens doors and removes barriers. Much like our corporate goals, diversity and collaboration are creating opportunity. They are the key to our success. Through a shared vision; active, respectful dialogue; collaboration and a sense of mutually beneficial outcomes, we are creating the ideal conditions for lasting, impactful, real change to happen. And, its why the work accomplished with this group of extraordinary women is so very meaningful and fulfilling.
Wonhong Lee is the Head of Customer Segmentation Strategy & Development at MassMutual and one of two men serving on its mostly female supplier diversity steering committee.
Leading Where People Want to Go
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