Why economist Wendy Smith went from trading floor to DEI work

Article content

Diversity, equity and inclusion (DEI) has become a touchstone for some, and a buzzword for others.

Whether looking to DEI to help with attracting and retaining talent at family offices or operating companies, or through the interest of rising generations in purposeful investing, DEI is on the minds of many of Canada’s enterprising families.

Canadian Family Offices spoke with Wendy Smith, managing partner at DEI consultancy Advanced Inclusion in Toronto, is an economist who worked for several years on the trading floors of several Canadian Big 5 banks. Smith then ran the first global DEI office for a Canadian wholesale bank, and in both those roles, ‘saw a lot of opportunities for improvement in the culture.’

At Advanced Inclusion, Smith takes that experience to now share those years of lessons and mistakes with clients.

What are some things clients need to think about when it comes to DEI?

First, it’s crucial for clients to recognize that DEI (diversity, equity, and inclusion) is a business initiative. Creating a more diverse and inclusive workplace is not merely a nice-to-have element confined to HR. It should seamlessly integrate into every aspect of the business.

Research consistently shows that the most productive teams are ones that are diverse and where every perspective is valued.

Second, we encourage our clients to adopt a holistic approach to DEI. We like to say that the objective is to make DEI an integral part of the firm’s DNA. For example, when examining the employee experience, we encourage clients to consider the entire spectrum: the three R’s – Recruitment, Retention, and Rewards of employees.

Lastly, we always advise our clients to start small. Often, we witness firms enthusiastically embracing a multitude of DEI initiatives, only to exhaust their resources and momentum within six months or a year. It’s more effective to begin with one or two highly impactful, measurable, and visible initiatives that align with the long-term strategy. This approach not only builds credibility, confidence, and trust in the strategy but also naturally generates momentum over time.

What are trends that you’re seeing?

There are a few encouraging trends we’re seeing in this space.

There is a widening discussion of diversity, beyond gender identity and race. Other attributes, such as accessibility, age, and neurodiversity, are being recognized.

Implementing data-driven and evidence-based strategies to measure and improve DEI outcomes, such as hiring, retention, promotion and pay equity, remains critically important.

What gets measured, gets done.

What we have seen recently is more emphasis on cultural change: developing an environment of psychological safety, where everyone feels they belong, and their voices are heard.

Currently, in some spaces, we are witnessing pushback against the principles of diversity, equity, and inclusion. Some argue that these infringe upon personal freedoms or that they simply have gone too far.

First and foremost, DEI is not merely a passing trend or a social ideology; it’s a reflection of our evolving society and best business practices. A diverse workplace benefits from a broader range of perspectives, experiences, and talents, which can lead to more innovative solutions and economic growth.

Furthermore, the pushback against DEI often stems from a lack of understanding or fears about what these initiatives entail. By addressing concerns and taking a myth-busters approach, we can build bridges between opposing viewpoints and foster a more inclusive and empathetic business environment and investment community.

Embracing DEI is not about exclusion but about creating an environment where everyone, regardless of their background or identity, can thrive. DEI is not an add-on and does not sit outside a business. As long as there are people, DEI will be important.

What are issues of concern that you think should be considered by clients?

On the flip side of looking at DEI from a positive business lens, clients should recognize the risk of inaction. In this current environment, firms do not have the luxury of being reactive, they must be proactive. We have seen social media being used as a very powerful tool for those who feel firms aren’t moving quickly enough along their DEI journey. And from all kinds of stakeholders: from employees and customers alike.

Artificial Intelligence (AI) is rapidly changing the world in which we operate and can help with many time-consuming tasks around human resources. But it is important to recognize that AI algorithms are written by humans, and all of us have biases. So if AI is being used to help in making people-type decisions, it is important to be alert and consider what biases might be showing up in the AI outputs.

Have you seen any changes in approaching this topic?

After doing advocacy work in this field for over 30 years, I think the greatest development has been the transformation in the discussion to include everyone in this conversation.

Using the example of gender inclusion: Too often in the past, women made the mistake of forming groups made up of only their gender identity, to discuss issues they were facing. I was admittedly part of these groups and really benefitted from the support they provided. It was a comfortable space. But we did not include men in the conversation. It’s not a big surprise, then, that we made little progress toward equity. How were men to become allies if they were not even aware of the issues, and all the research that we avidly shared amongst ourselves?

Now discussions around gender equality welcome everyone, and in particular, men – who are very often the culture carriers and decision-makers. And we are finally making real progress.

I firmly believe the only way we can come to real solutions, providing opportunities for all of us to succeed, is by involving all stakeholders. Too often it seems we discount others’ opinions, or, particularly in the DEI space, we cloud the discussion with ‘correct’ language and terms. The result is that key allies might not feel comfortable voicing their opinions, and instead, they shy away from these important discussions.

I am encouraged to see more folks empowered to join the discussion, curious to learn more and to be part of the solution.

How did you come to focus on DEI?

I consider myself very lucky to be able to follow my passion for ‘growing the good’ in business.
But this certainly was not in my plans when I started my career – far from it.

For most of my career, I worked on the trading floors of several Canadian Big 5 banks, advising institutional clients globally on fixed-income products.

I really enjoyed the fast pace and intellectual challenge of the business, and I thrived in that environment.

But in the course of over 20 years, I saw a lot of opportunities for improvement in the culture. And I made my thoughts on the subject well-known.

So, when I was offered the opportunity to make real change, in founding and running the first global DEI office for a Canadian wholesale bank, I jumped at it, and have never looked back.

I ran that office for over six years, giving me the opportunity to learn so much: celebrating our many wins, and perhaps, more importantly, learning to recognize mistakes along the way. I now have the opportunity to share these learnings with our clients every day.

Learning more about DEI has been a lifelong passion, as it is for many of us. I have taken many formal courses on inclusion, and the experiences of specific underrepresented groups. And I have met with thought leaders worldwide on the subject. But the best learnings have come from the countless discussions with individuals experiencing bias and discrimination, and being so impressed with how they overcome all the obstacles to thrive.

I also have formal training as an executive coach, which helps me in providing DEI-informed coaching conversations with our clients.

Responses have been lightly edited for clarity and length.

Please visit here to see information about our standards of journalistic excellence.