MARCH 13, 2012CMEDI CORPORATE SESSION

 • Establishing goals

• Driving Supplier Diversity goals through the enterprise/organization

• Identifying opportunities

• Rewarding/incenting buyers 

SAMPLE GOAL SETTING WORKSHEET

• Process started in August each year – Completed by October• Back-up information to supplier level provided with worksheet• SD Leadership Team responsible for working with internal stakeholders to set• SD Team held option to push back• Minimum 10% increase strongly encouraged • Final review and approval by CPO

MBE % WBE % Co Base $Explanation if a decrease from

prior year MBE $ MBE % WBE $ WBE % MWBE $ MWBE % Co Base $

INFO TECHNOLGIESHARDWARE 4,894,524 2.3% 209,317 0.1% 5,103,841 2.4% 216,726,230 SOFTWARE 46,840,508 28.3% 21,881,820 13.2% 68,722,328 41.5% 165,687,950 PROF SVCS 96,058,482 12.6% 13,905,892 1.8% 109,964,374 14.5% 759,801,484

TOTAL INFO TECHNOLOGIES 147,793,514 12.9% 35,997,029 3.2% 183,790,543 16.1% 1,142,215,664

BUILDING INFRASTRUCTUREENERGY 70,074 0.1% 3,781 0.0% 73,855 0.1% 96,284,946 CONSTRUCTION 35,032,283 5.7% 62,059,239 10.1% 97,091,522 15.8% 615,507,169 FACILITIES 15,602,308 3.3% 41,408,500 8.8% 57,010,808 12.2% 467,967,988

TOTAL BUILDING INFRASTRUCTURE 50,704,665 4.3% 103,471,520 8.8% 154,176,185 13.1% 1,179,760,103

THIRD PARTY LEASINGTHIRD PARTY LEASING 177,940 0.3% 496,932 0.9% 674,872 1.2% 56,834,922

MARKETINGTELEMARKETING 931,701 0.1% 49,586,726 7.0% 50,518,427 7.2% 704,355,022 ADVERTISING 32,521,486 5.6% 1,278,456 0.2% 33,799,942 5.8% 585,856,676 PRINT/DIRECT MAIL 4,857,461 3.6% 12,350,499 9.0% 17,207,960 12.6% 136,706,849

TOTAL MARKETING 38,310,648 2.7% 63,215,681 4.4% 101,526,329 7.1% 1,426,918,547

ADMINISTRATIVE SUPPLIES 1,865,781 3.2% 552,684 0.9% 2,418,465 4.1% 58,794,927

TEAM

January - August 20xx20xx GOALS

All

numbers

are fictional

DRIVING GOALS

Exec commitment,

Policy,

3 Year Strategy

PPG

VP Award

-All buyers – full day SD training

- High percentage of GP Scorecard

Training – 1 day for all;

going forward included in

SMP refresh training

Pipeline- Pipeline established

- Sustainability Plan established 3 years out

Sustainability

Plan

by Team

Results Reported Monthly

- SD part of annual Procurement/Stakeholder negotiations

- Results reported 5th day of each month

Part of

Procurement/

Stakeholder Agreement

DRIVING FROM THE TOP DOWN

4

Corporate Policy XX– Supplier Diversity

Executive Committee Supplier Diversity Commitment

4

TRAINING – DESIGNING SUPPLIER DIVERSITY INTO PROCUREMENT PROCESS

StrategyImplementation

and Improve

Specification Management

STAGE IDEFINE

STAGE IIGATHER/ANALYZE

STAGE IIISTRATEGY CREATION

STAGE IVSTRATEGY IMPLEMENT

STAGE VSUPPLIER

MANAGEMENT

STAGE VSUPPLIER

MANAGEMENT• Determine business

needs• Condition

stakeholders• Research market

potential-diverse suppliers

• Discuss diverse supplier opportunity with SMP team

• Identify constraints and restrictions

• Identify all potential suppliers -AQSCI

• Examine selection criteria to avoid bias

• Follow up with diverse suppliers to encourage participation

• Clearly defined metrics and evaluation criteria

• Require non diverse suppliers to be inclusive

• Negotiate aggressively with diverse suppliers

• Structured reviews

• Leverage internal and external resources

• Business partner participation and feedback on performance

• Supplier feedback on process

• Clear requirements• Marketplace

Drivers• SMP team and

stakeholders conditioned to include diversity

• SD team engaged to identify qualified diverse suppliers

• MWBE options identified

• AQSCI evaluation criteria examined

• SMP team aligned with diversity strategy

• Clearly defined inclusive sourcing options

• Aligned metrics/Project Plan

• Identified savings targets

• Tier 1 or Tier 2 plans in place

• Scheduled SMP team

• and Supplier reviews

• Joint score cards

• Improvement plans

• Contract monitoring

• Apply LRIG sourcing evaluation

• Evaluate 1st tier/ 2nd tier sourcing opportunities

• Evaluate creative approaches i.e. supplier partnerships, carve-outs, JV’s, SA’s

Act

iviti

esR

esul

ts

PIPELINE EXAMPLE

PIPELINE DEVELOPMENT

TEAM SUPPLIER E/CPRIOR YEAR

ACTUAL 3MXX 6MXX 9MXX 12MXX Actual Gap RemediationDBA ABC COMPANY HF 98,637,422DMA D COMPANY WF 13,630,602FBA F COMPANY WF 12,673,659FBB UGUESS COMPANY MG 8,830,714FGA IDONTKNOW COMPANY MG 7,796,508FGA WISH I KNEW COMPANY WF 5,931,519FGA GOTTA HAVE THIS COMPANY MG 5,281,185FGA RUNNING OUT OF NAMES WF 5,073,848FGA GLAD TOWARD THE END WF 4,996,934FGA AT LAST COMPANY WF 3,856,824FGA ONE MORE COMPANY WF 3,257,596

PROJECTED SPEND

- All diverse suppliers from prior year loaded into file- Each team projects current year spend- Actuals entered on quarterly basis- Gap calculated- Remediation plans created and executed

INCENTIVES

11% of bonus Spot Awards

Conferences/ Meal Tickets

Letters to Management

VP Award

$5k

ENSURING SUSTAINED RESULTS

TEAM SUPPLIER E/C DESCRIPTION XMXX High Level Sustainability PlanIBA CALIENTE CONSTRUCTION INC WF GENERAL CONTRACTORS 9,155,029 IBA H C OLSEN CONSTRUCTION CO INC HF GENERAL CONTRACTORS 5,514,535 IBA BELL MILL CONSTRUCTION CO INC WF GENERAL CONTRACTORS 5,273,205 IBA J R BOWMAN CONSTRUCTION CO INC WF GENERAL CONTRACTORS 3,913,111 IBA AZTEC CONSULTANTS INC HM GENERAL CONTRACTORS 3,384,060 IBC FORKERT ENGINEERING & SURVEYING INC WF ARCHITECT/ENGINEER SERVICES 8,732,084 IBC MANUEL BROS INC MG ARCHITECT/ENGINEER SERVICES 4,165,481 IBC LAND SERVICES INC WF ARCHITECT/ENGINEER SERVICES 3,798,983 IBE FONTENN CONSTRUCTION CO HG OUTSIDE PLANT CONSTRUCTION 3,096,156 IBX SCHWEIGER CONSTRUCTION CO INC WF DESIGN/CONSTR,TRANSFER SPLR 3,994,586 IED ARBEE ASSOCIATES WF AUTHORIZED FURNITURE DISTRIBUTORS 8,646,101 IFA CONSOLIDATED SERVICES INC WF JANITORIAL 32,000,000

• Each procurement category responsible to establish sustainability/growth plan for diverse suppliers representing 90% of spend. (Most categories had no more than 8 suppliers to develop plans for.)

• Mentoring• Training• Introduction to primes for SA/JV• Monitored by SD Team and SD Leadership Team• Reviewed by CPO and President