international association ofinternational association of

International Association ofInternational Association of Outsourcing Professionals

Chicago Chapter January 27, 2011

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Meeting Agenda3:30 p.m. – 3:45 p.m. Registration

3:45 p.m. – 4:00 p.m. Welcome and IntroductionsNeil S. Hirshman, P.C., COP, Kirkland & Ellis LLP

4:00 p.m. – 5:00 p.m. Shifting from Environmental Performance Management to Driving Business PerformanceMichael Nicholus, Global GS Environment Director, AccentureThis session will explore how companies increasingly report on Environmental Business Performance in response to customer demands, and should look to derive key business performance improvement from the effort. Accenture will describe the methods used to prioritize investment areas to both improve environment performance and business performance.

5:00 p.m. – 5:55 p.m. Aligned Values – Client and Provider Collaborate on CSR ProgramShuchita Singh, Vice President, Global Sourcing, Operations & Technology, Northern Trust; Marcy Harman, Vice President, Global Sourcing, Northern TrustThis session will give a case study of one buyer company's efforts to build a Corporate Social Responsibility assessment and monitoring framework. The purpose of the framework is to provide a consistent and repeatable method for measuring supplier's alignment with the buyer's social responsibility objectives. The buyer may use it to identify and address problem areas with an existing supplier or to recognize a supplier for their achievements. It may also be used as input to assess the fit of a new supplier.

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5:55 p.m. – 6:00 p.m. Meeting Wrap UpGary Yurkanin, Director, Kraft Foods

6:00 p.m. – 7:00 p.m. Networking ReceptionSponsored by Accenture

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Chicago Chapter

• Co-chairs– Jay Desai, Northern Trust – Neil Hirshman, Kirkland & Ellis LLP– Gary Yurkanin, Kraft Foods

• Organized geographically• Membership

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• Businesspersons, consultants and attorneys• Introduction of attendees

Chicago Chapter

• Quarterly meeting – Generally Jan., Apr., Jul., O tOct.

• Upcoming Meeting – April 21• Planning and Hosting Future Meetings

– Location and Reception Sponsor needed for April 21– Assistance in organizing welcome– Topics?

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– Topics?• Evaluation Forms

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Report on Chicago October 21 Meeting

• Held at Kirkland & Ellis LLP

• Presentation by Brian D. Smith, Partner & Managing Director, Financial Services, TPI and Ed Walsh, Senior Advisor, Financial Services, TPI -Maximizing the Value of Your Outsourcing Relationships

• Presentation by Scott Gilbert, Divisional Vice President, Accounting Operations, Sears Holdings and Don Brilz, BPO, Wipro - Case Study: “Value Leakage and How to Prevent It”

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• Networking reception sponsored by Hinduja

Shifting from Environmental Performance Management to Driving Business Performance

Michael NicholusGlobal GS Environment Director Accenture

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Global GS Environment Director, Accenture

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Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

From Measuring Environmental Performance Management to Driving Business Performance

January 2011

Accenture recognizes the challenges of climate change and is committed to measure, report on and reduce our environmental impact

• Global management consulting, technology services and outsourcing company with more than 204,000 people serving clients in over 120 countries

• Operations in 52 countries • Net revenues of US$21.6 billion for

the fiscal year ended Aug. 31, 2010• $7 billion supply chain• Achieved target to reduce carbon

emissions per employee 25% by FY2009 compared to FY07 baseline

• UN Global Compact Signatory• Environment Responsibility Policy• Stewardship is a core valueCopyright © 2011 Accenture All Rights Reserved.

Accenture at a Glance

• Global ISO14001 Certification• LEED, BREEAM, Green Star

Certifications in 8 offices globally• Carbon Disclosure Project (CDP)

score improved to 91, adding Accenture to Carbon Disclosure Leadership Index

• Ranked #75 on CRO’s 100 Best Corporate Citizens List in 2010

• Forrester Research Green IT Leader• Dow Jones Sustainability Index North

American Component since 2005• FTSE4Good since 2005 • 2008-09 Corporate Citizenship Report

Global Reporting Initiative (GRI)compliant

Awards & Recognition

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Copyright © 2011 Accenture All Rights Reserved.

We cultivate eco-efficient practices in our office portfolio to reduce energy use and cost of operations

• Workplace 2.0 & Sustainable Design: Re-thought the way we work and use office space to drive efficiency and innovation. Accenture’s Facilities & Services real estate strategy drives dense, highly utilized facilities, with leading edge “hotelling” and remote working practices. We use sustainable design principles in office renovations and have achieved green building certifications (LEED, BREEAM, Green Star 6) in select offices globally.

• Apply SMART energy management principles: By developing a methodology of behaviors, infrastructure and SMART metering, we seek to increase energy efficiency in our offices.

• Global ISO 14001 Certification: Accenture holds a global ISO 14001 certification, which supports our efforts to measure and manage our operations efficiently in relation to the environment. Over 60 locations around the world are operating certified Environment Management Systems

• Server consolidation and virtualization: To reduce both electricity consumption and the need for space, Accenture has virtualized and consolidated its data centers around the world. In fiscal 2009, we ran a green data center study at many of our facilities across India. By studying the carbon emissions and costs of different temperature settings, we identified significant savings while maintaining performance levels. Going forward, we will use the results to design more-energy-efficient data centers for Accenture and our clients

• Renewable energy: Source over 10 percent of office electricity from renewable sources globally

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• Workplace 2.0 & Sustainable Design: Re-thought the way we work and use office space todrive efficiency and innovation. Accenture’s Facilities & Services real estate strategy drivesdense, highly utilized facilities, with leading edge “hotelling” and remote working practices.We use sustainable design principles in office renovations and have achieved green buildingcertifications (LEED, BREEAM, Green Star 6) in select offices globally.

• Apply SMART energy management principles: By developing a methodology of behaviors, infrastructure and SMART metering, we seek to increase energy efficiency in our offices.

•

At targeted sites, we use Remote Energy Monitoring to drive plant actions to gain efficiencies

By removing the “peaks” through refining plant systems, overallefficiency is improved and there is minimal operating tail to maintain the savings…

Before

After

Copyright © 2011 Accenture All Rights Reserved.5

Remote Energy Monitoring – actual efficiency data

11/Jan 18/Jan 25/Jan 1/Feb 8/Feb 15/Feb

Actions:Plant time adjustmentLighting adjustmentWater Pumps adjustmentIce machines time adjustment


Access to live meter data increases the speed to find the best reduction actions with the least resource management needed

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The next step after understanding our own performance is to look at the supply chain

Supplier Standards of Conduct – Documents our expectations• Aligns with CoBE, core values, UNGC Ten Principles• Included in supplier agreements effective January 2010• Ethics certification (training module) based on Supplier Standards of Conduct required for some suppliers

Supplier Screening – Assesses sustainable business practices; identifies ‘red flags’• Environment, financial, business continuity, ethics, labor, diversity, health & safety• To date have screened existing key global suppliers in Airlines & It categories; key NA Contractors• Global templates; off shore support• Adapting global methodology to local needs

Financial Assessment – Option for a ‘deeper dive’ into supplier’s financial viability• Sourcing professional requests supplier’s financial summary as part of sourcing process• Corporate Treasury completes ongoing ‘deep dive’ financial reviews of critical suppliers• Contract language has been strengthened

Data Privacy Assessment – Due diligence process to identify suppliers that require a deeper background screening• Suppliers who have access to Accenture or client confidential information• Initial primary target: Subcontractors; however, other suppliers can fit criteria, e.g., security companies• Data Privacy and Information Security training required for some suppliers

Business Continuity Assessment – Due diligence process to ensure key supplier preparedness• Sourcing process strengthened for critical sourcing events; contract language strengthened for critical suppliers • Critical supplier BC Plans & ongoing tests required and may be audited • Global Procurement BC Plan developed

Sustainable Procurement Metrics – Track and report progress internally & externally• Procurement operational reporting• Corporate Citizenship reporting 6


We evaluate our supply chain through our Code of Business Ethics. Key suppliers are also evaluated against the United Nations Global Compact Principles

• Does your organization have ISO14001 or equivalent global, regional or local certification (BS8555, EMAS)?

• If yes, does the certification cover the product or service being supplied to Accenture?

• Does your organization have an environmental policy?• If yes, is the policy available to the public?• Are you actively encouraging the improvement of environmental

performance within your supply base/key supplier relationships?• Please list your organization's top 3 environmental impacts as well as any

plans to reduce them• Do you measure and report on the significant environmental impacts of

your business? • Are there individuals within your organization who have specific

responsibilities for Environmental Management? • Has your company been charged with any violations of any environmental

regulations within the last five years?

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In addition to analyzing our suppliers, when it comes to buildings we rent, we also score the product provided…

Excerpt from our Building Evaluation Toolkit…

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Does the building have a green building certification, e.g., LEED, BREEAM?

YES / NO

Direct metering or sub-metering for electricity consumption YES / NOComprehensive occupant recycling program including paper, glass, plastics, cardboard, metals, batteries, fluorescent light bulbs.

YES / NO

Energy efficient building, i.e., energy efficient transformers, energy efficient HVAC systems.

YES / NO

Landlord will allow us to directly purchase electric power for our floors if we choose

YES / NO

Secure bicycle storage and changing rooms/shower facilities available.

YES / NO

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Transparency and accountability are priorities for Accenture – we have set and published environmental goals in our Corporate Citizenship Report

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FY2012 Targets

• Review the environmental, social and ethical business practices of global suppliers representing at least 70 percent of our procurement spending in key categories.

• Reduce carbon emissions per employee by 40% for FY2012 compared to our FY2007 baseline

To view or download our report go to: www.accenture.com/corporatecitizenship

Copyright © 2011 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Questions

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Aligned Values – Client and ProviderAligned Values Client and Provider Collaborate on CSR Program

Shuchita Singh, Vice President, Global Sourcing, Operations & Technology, Northern Trust

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Marcy Harman, Vice President, Global Sourcing, Northern Trust

The International Association of O t i P f i l ®Outsourcing Professionals®(IAOP®)

Global Standard-Setting Organization and Advocate for the Outsourcing Profession

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Addressing the challenges that come with greater levels of outsourcing is going to take a new breed of outsourcing professional.

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Global Membership-Based Organization for Customers, Providers and AdvisorsProviders and Advisors

Only Professional Quality Standard for the Field of Outsourcing

Proven Track Record of Delivering Value – 85% of Customer Members Credit IAOP for Improved Outsourcing Outcomes

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IAOP® is the largest and fastest growing network of outsourcing professionals in the world

100+ Founding & Corporate Members, including:Abbott Laboratories, Accenture, ACS, Aditya Birla Minacs, Aegis, Allstate Insurance, Alsbridge, American Express, ANDI, Anthem BCBS (Wellpoint), Apple Inc, Applied Materials, Assurant, Astek, Atlantic Canada Atlantique, AT&T, ASTRA, Astrazeneca, Avasant Global Sourcing,

Most of the World’s Top Organizations are Leveraging IAOP’s Programs and Services

Baker & McKenzie, Bancolombia, Belcan Corporation, Best Buy Company, BeyondCore, BizPlus, Blazent, Bleum, Blue Cross/Blue Shield of Florida, Blue Shield of California, Booz & Company, Boston University, Business Catalyst International, Cal State Fullerton, Cambridge Assessment, Capgemini, Capital One, Carnegie Mellon University, Cassidy Turley, CB Richard Ellis, Chinasoft International, Chris Disher & Associates, Chrysler, Cinteger LLC, Compass America, Inc, Computer Associates, Copenhagen Business School, CORFO (Chile), Colliers International, CPA Global, Deloitte Consulting LLP, Delve Group, Diebold, Discover Financial, Disney Institute, DNL Global, Duke Energy, Duke University, Enlighta, Entergy, EquaSiis/EquaTerra, Everest, Expense Management Solutions, Expedia, Express Scripts Inc, FaskenMartineau DuMoulin LLP, Firstsource, Foley & Lardner, GASSCOM/E.Services Africa, General Motors, Genmab, Genpact, GorrissenFederspiel, GSOS, Hinduja Global Solutions (HTMT), HBC, Hexaware Technologies, hiSoft Technology International Limited, Honeywell, Hospira, HOV Services, IDA Singapore, Information Technology Association of Jordan, Infosys, Innodata Isogen, Insigma Hengtian Software, Intel, Intetics, ISS A/S, Janeeva, Janus Associates, J & J Consumer Group, John Hancock Financial Services, Kelly OCG (BPO), Kenobi SRL, Kenya ICT, Kirkland & Ellis LLP, Kraft Foods, Liberty Mutual, Liveops, Marsh & McLennan Co, Mayer Brown LLP, Microsoft, Missouri Partnership, Morgan Stanley, Morrison & Foerster LLP, Mphasis, Multimedia Development Corp. (MdeC), Neusoft Corporation, Nordea Bank, North Dakota Dept. of Commerce, Northern Trust, Objectiva, Océ Business Services, Oracle, Orange Business Systems, Ordina, Ortho-McNeil Janssen, PCCW Solutions, PepsiCo, PETCO, Pfizer Inc, Pillsbury Winthrop Shaw Pittman, Pratt & Whitney/UTC, Pretium Partners, PricewaterhouseCoopers ProBarranquilla Procter & Gamble Procurisource Prudential Qantas Airlines Quint Wellington Redwood

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PricewaterhouseCoopers, ProBarranquilla, Procter & Gamble, Procurisource, Prudential, Qantas Airlines, Quint Wellington Redwood, ResourcePro, Rio Tinto, Roche, RR Donnelley, RTM Consulting LLC, Rural Sourcing, Salmat, SAP AG, Sears Holdings, Service Corporation Intl, Singtel Optus (Australia), Sitel, SPi Technologies, State Farm Insurance, Staywell Health Mgmt,Symantec, SymphonyIRI, Systems Plus,(SPS), TEKsystems, TeleTech, Thompson & Knight LLP, Thomson Legal & Regulatory, TransUnion Interactive, TPI, Trellis, Univ of Missouri, Univ of Salerno, VanceInfo, Vantage Partners, Vertex Business Services, Verve, Visa, Vodafone, Washington Gas, Whirlpool, Wipro Technologies, WNS Global Services, Xceed, Xchanging, Xi’anSoftware Development,Yahoo and Zensar!

1000+ Professional Members ● 110,000+ Affiliate Members

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IAOP Structure and Programs

Strategic Advisory Board, Regional Advisory Boards & Outsourcing Standards BoardResearch, Training, Services, Advocacy & Outreach CommitteesGeographic, Industry, Topical Chaptersg p y p pOnline Member Directory, IAOPNetwork & Customer-only IAOPNetworkThe Outsourcing World Summit®Regional Summits - part of the Outsourcing World Summit Conference SeriesTopical Forums as part of the Outsourcing Leadership SeriesIAOP Member of the Year AwardsOutsourcing Hall of Fame AwardsGEO - IAOP’s Global Excellence in Outsourcing AwardIAOP Knowledge Center (Firmbuilder.com®)Certified Outsourcing Professional® (COP) Program (Attending a chapter meeting earns COP’ 1 CEH t d tifi ti )

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COP’s 1 CEH towards recertification)Outsourcing Professional Certification Framework (OPCF) includes COP and COS families of certificationsThe Global Outsourcing 100 ® Program (The Global Outsourcing 100 list and sub lists, World’s Best Outsourcing Advisors)Outsourcing Professional Code of Ethics

COP Master Class – North America Bundle SpecialLimited seats available at this price!

If you are a Professional Member of IAOP and have attended any IAOP Chapter Meeting in the past 12 months, you may purchase any COP Master Class Bundle seat in any North America public class at the

special price of $3,500. Contact [email protected] for registration details.

-----------------------------------------------------------------------------New!

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Online Governance WorkshopGovernance or other IAOP chapter attendees take $100 off using

Promo Code POJS100 at www.iaop-cop.com

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Start 2011 off with Professional Membership in IAOP

H b thi ki b t j i i IAOP f i lHave you been thinking about joining IAOP as a professional Member? Don’t delay any longer! Sign up for Professional

Membership before March 15 and save $75 on your membership.To sign up, simply go to www.iaop.org/PMregistration and register using

the offer code ‘IAOP-PM-NEW11’. Remember, once you’ve joined, you are eligible for member pricing when registering for the 2011

Outsourcing World Summit – a considerable discount!

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Outsourcing World Summit a considerable discount! Don’t delay – join today and start 2011 off right!

* Offer available with full-price memberships

Other IAOP Upcoming Dates of Interest

2011 Outsourcing World SummitFebruary 21-23, 2011 – Indian Wells, California

2011 Latin America Outsourcing SummitMay 26-27, 2011 – Cartegena, Colombia

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With more than 110 000 members and affiliatesWith more than 110,000 members and affiliates worldwide, IAOP® is leading the effort to transform the world of business through outsourcing.

If you are not already a member, you can begin taking immediate advantage of IAOP’s programs and

i b i t i

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services by going to www.iaop.org.

Contact

Jay DesaiNorthern Trustj d4@ [email protected]+1 (312) 444-3460

Neil S. HirshmanKirkland & Ellis [email protected]+1 (312) 862-2493

www.IAOP.org

Gary YurkaninKraft [email protected]+1 (847) 646-0751

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Networking ReceptionSponsored by Accenture

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