Diversity Works for London Home

A dynamic supply base is an integral part of Lehman Brothers' commitment to diversity and the firm is dedicated to the initiative as part of its efforts to engage with the most entrepreneurial and innovative businesses in the global marketplace. The European Supplier Diversity Initiative was formalised in early 2006.

Lehman Brothers believes that attracting and retaining the best suppliers from the widest pool of talent is a key driver for future business success. Its European Supplier Diversity Initiative seeks to achieve the following:

  • Raise awareness amongst its supplier base;
  • Broaden its supplier base; and
  • Effectively identify diverse suppliers, both current and prospective.

Lehman Brothers recognised the need to establish the level of diversity among its existing supplier base and in June 2006 launched a series of Supplier Diversity Breakfast Briefings. At these sessions senior leaders speak about the firm’s commitment to diversity in all aspects of the business, including the strategic procurement of goods and services. The sessions offer suppliers the opportunity to network with members of the team who are responsible for the procurement of goods and services across Europe.

The briefing sessions are organised by the procurement area, allowing the supplier relationship managers within Lehman Brothers to also become involved. Following each briefing session, a questionnaire is sent to suppliers covering topics such as ownership, demographics, diversity policies, and general company information.

The submissions enable the firm to understand more about the diversity of its supplier base, as well as to better understand the diversity-related efforts of suppliers. The questionnaire results are used to further develop the supplier diversity processes and procedures already in place throughout Lehman Brothers and to identify mentoring opportunities with suppliers. These mentoring activities can include a review of current diversity policies, working to establish consortiums, or referrals to third-party organisations that are able to provide specific business guidance.

Impact

  • The supplier questionnaire response rates demonstrated that nearly two-thirds of the suppliers in these procurement areas are SMEs.
  • Additionally, suppliers self-identified as diverse on the basis of ethnicity, gender, disability and sexual orientation, highlighting that the firm already does business with many diverse-owned businesses.
  • The results of the questionnaire highlights areas for further opportunity, where the firm’s supply base is not as diverse as in other areas. This allows Lehman Brothers to review internal processes to ensure that there are no unnecessary barriers for small businesses.
  • By engaging with supplier relationship managers in the business through the Breakfast Briefing Series, internal awareness was raised of the importance of supplier diversity and the benefits of working with SME and diverse businesses.