Deloitte, Sask. band team up for Indigenous professional services firm R8dius

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This article was published 09/10/2024 (665 days ago), so information in it may no longer be current.

The idea of economic reconciliation likely has been brought closer to the forefront for some commercial enterprises in the wake of the provincial holiday marking the National Day for Truth and Reconciliation.

The desire on the part of companies to somehow engage in that way is one thing. Figuring out how to do it can be a tricky proposition, depending on what the enterprise is doing.

It was not so long ago large natural resource or energy projects built in or near traditional lands of First Nations formed “partnerships” with Indigenous entities to fulfill regulatory requirements for equity inclusion. However, some of those partnerships would come to be seen over time to be little more than performative.

As understanding has grown about Canadian society’s persecution of Indigenous people and the long-lasting impacts of the residential schools system, a deeper appreciation of the need for reconciliation is emerging.

In Manitoba, there are many companies, including small- and medium-sized ones, who sincerely want to participate in economic reconciliation in a meaningful way.

One of the best examples is the Indigenous pilot training program started by Exchange Income Corp., that now includes sites in Thompson and Rankin Inlet.

This week, a new majority-owned professional services firm was launched called R8dius. It is a partnership between Kitsaki Management Limited Partnership (the economic development arm of the Lac La Ronge Indian Band in northern Saskatchewan) and Deloitte Canada.

Kitsaki owns 51 per cent of the venture and would welcome additional Indigenous partners who would be able to buy in at the same valuation Kitsaki did.

R8dius will start out with a focus on tech services. It already has a trained team on staff, including specialists in SAP, the enterprise software to manage business operation and customer relations, and some paying customers.

Ron Hyggen, Kitsaki CEO and chairman of the R8dius board, said R8dius is committed to having at least one-third of its staff be Indigenous.

From Deloitte’s point of view, it wants to have a vehicle that can promote the development of more Indigenous people in the professional STEM (science, technology, engineering and mathematics) field.

Roland Labuhn, R8dius managing partner and a partner with Deloitte Canada, said while R8dius is by no means designed as a social enterprise, it can provide a vehicle for the company to play a role in the development of that expertise.

“We understand that by 2030, seven per cent of the Canadian workforce will be Indigenous,” Labuhn said. “We need to find ways not just at Deloitte, but in Canada, to find alternatives for these individuals.”

Hyggen said R8dius will charge competitive rates and Kitsaki and any new investors will certainly be looking for a return on their investments and maybe even some operational dividends.

As for Deloitte, it’s a bit of an unusual scenario in that R8dius will likely compete with it for some clients. “There is certainly some piece of this where Deloitte is forgoing revenue to see this business succeed,” Labuhn said.

In addition to providing a stable platform for the training and development of Indigenous professionals in the STEM field — something that is certainly not common in the Canadian landscape — R8dius is looking to create a national practice that will allow its clientele to engage with an Indigenous-owned business, regardless of the motivation they might have for doing so.

“There are many corporations, businesses, individuals who are looking for a solution like this, but there just has not been anything in the market yet,” said Hyggen. “We are happy to deliver it.”

While R8dius will leverage some Deloitte expertise especially in its early days, it is intended to operate as a stand-alone entity, with its own staff and board that will be controlled by its Indigenous members.

Labuhn said in addition to the STEM training and a real desire to be purposeful regarding its own economic reconciliation intentions, R8dius will also provide a commercial edge.

“We think there is a market that Deloitte would not be able to access because there are clients out there looking to work with Indigenous businesses,” he said. “So, there is a portion of this work that Deloitte could never win.”

This kind of partnership may not have been contemplated nor would the right pieces — or demand — have been in place even 10 years ago.

“Doing it alone is slow and difficult,” Hyggen said. “You can scale a lot faster with the right partners.”

Deloitte is not the kind of organization that would become part of an initiative that would mar its reputation for integrity and professionalism. Kitsaki has built its own impressive track record since 1981, so that it now owns or has a stake in more than a dozen businesses.

As Hyggen said: “They’re lucky to have us.”

martin.cash@freepress.mb.ca