presented by: fernando j. hernandez microsoft supplier diversity director "building the...

Presented by:Presented by:

Fernando J. HernandezFernando J. Hernandez

Microsoft Supplier Diversity Microsoft Supplier Diversity DirectorDirector

"Building the Corporate Business case"

What is Strategic ?What is Strategic ?

• Revenue enablement • Innovation • Cost efficiency

Is SD aligned with the Is SD aligned with the Corporate Strategy? Corporate Strategy?

• Public Clients • F500 • Customer satisfaction• Demographic trends

Is SD Viewed as Is SD Viewed as Strategic? Strategic?

• Embraced at the “C” suite• Executive Champion

•Clearly defined goals & objectives • Human/Capital resources • Internal/External communication• Goal alignment (BU, Buyers, SD)• Key initiatives report (1Q - 4Q)• Strong contact language for second tier

AssessingAssessingSD and BusinessSD and BusinessAlignmentAlignment

Assessing SDAssessing SD

and Businessand Business

AlignmentAlignmentinin

CommunicationCommunication

practicespractices

Level 1Level 1Without Without

ProcessProcess(No Alignment)(No Alignment)

Level 2Level 2Beginning Beginning

ProcessProcess

Level 3Level 3Establishing Establishing

ProcessProcess

Level 4Level 4ImprovedImproved

ProcessProcess

Level 5Level 5OptimalOptimal

ProcessProcess(Complete(Complete

Alignment)Alignment)

Understanding ofUnderstanding of

business by SDbusiness by SD

SD SD managementmanagement

lacks lacks

understandingunderstanding

11 LimitedLimited

understanding byunderstanding by

SD managementSD management

22 Good Good understanding by understanding by SD managementSD management

33 Understanding Understanding encouraged encouraged among SD staffamong SD staff

44 Understanding Understanding required of all required of all SD staffSD staff

55

Understanding of Understanding of SD by businessSD by business

Managers lack Managers lack understandingunderstanding

11 Limited Limited understanding by understanding by managersmanagers

22 Good Good understanding by understanding by managersmanagers

33 Understanding Understanding encouraged encouraged among staffamong staff

44 Understanding Understanding required of staffrequired of staff

55

Organizational Organizational LearningLearning

Casual Casual conversation conversation and meetingsand meetings

11 Newsletters, Newsletters, reports, group e-reports, group e-mailmail

22 Training, Training, departmental departmental meetingsmeetings

33 Formal Formal methods methods sponsored by sponsored by senior senior managementmanagement

44 Learning Learning monitored for monitored for effectivenesseffectiveness

55

Style and ease of Style and ease of accessaccess

Business to SD Business to SD only; formalonly; formal

11 One-way, One-way, somewhat somewhat informalinformal

22 Two-way, formalTwo-way, formal 33 Two-way, Two-way, somewhat somewhat informalinformal

44 Two-way, Two-way, informal and informal and flexibleflexible

55

Leveraging Leveraging intellectual assetsintellectual assets

Ad-hocAd-hoc 11 Some structured Some structured sharing emergingsharing emerging

22 Structured around Structured around key processeskey processes

33 Formal sharing Formal sharing at all levelsat all levels

44 Formal sharing Formal sharing with partnerswith partners

55

SD-business SD-business liaison staffliaison staff

None or use None or use only as neededonly as needed

11 Primary SD-Primary SD-business linkbusiness link

22 Facilitate Facilitate knowledge knowledge transfertransfer

33 Facilitate Facilitate relationship-relationship-buildingbuilding

44 Building Building relationship relationship with partnerswith partners

55




MetricsMetrics




ProcessProcess


ProcessProcess


ProcessProcess




SD metricsSD metrics Technical onlyTechnical only 11 Technical, cost; Technical, cost; metrics rarely metrics rarely reviewedreviewed

22 Review, act on Review, act on technical, ROI technical, ROI metricsmetrics

33 Also measure Also measure effectivenesseffectiveness

44 Also measure Also measure business ops, business ops, HR, partnersHR, partners

55

Business metrics`Business metrics` SD investments SD investments measured rarely, measured rarely, if everif ever

11 Cost/unit; rarely Cost/unit; rarely reviewedreviewed

22 Review, act on Review, act on ROI, costROI, cost

33 Also measure Also measure customer valuecustomer value

44 Balanced Balanced scorecard, scorecard, includes partnersincludes partners

55

Link between SD Link between SD and business and business metricsmetrics

Value of SD Value of SD investments investments rarely measuredrarely measured

11 Business, SD Business, SD metrics not linkedmetrics not linked

22 Business, SD Business, SD metrics becoming metrics becoming linkedlinked

33 Formally linked; Formally linked; reviewed and reviewed and acted uponacted upon

44 Balanced Balanced scorecard, scorecard, includes partnersincludes partners

55

Service level Service level agreementsagreements

Use sporadicallyUse sporadically 11 With units for With units for technology technology performanceperformance

22 With units; With units; becoming becoming enterprise wideenterprise wide

33 Enterprise wideEnterprise wide 44 Includes Includes partnerspartners

55

BenchmarkingBenchmarking Seldom or neverSeldom or never 11 Sometimes Sometimes benchmark benchmark informallyinformally

22 May benchmark May benchmark formally, seldom formally, seldom actact

33 Routinely Routinely benchmark, benchmark, usually actusually act

44 Routinely Routinely benchmark, act benchmark, act and measure and measure resultsresults

55

Formally assess Formally assess SD investmentsSD investments

Don’t assessDon’t assess 11 Only when there’s Only when there’s a problema problem

22 Becoming a Becoming a routine routine occurrenceoccurrence

33 Routinely Routinely assess and act assess and act on findingson findings

44 Routinely Routinely assess, act and assess, act and measure resultsmeasure results

55

Continuous Continuous improvement improvement practicespractices

NoneNone 11 Few; Few; effectiveness not effectiveness not measuredmeasured

22 Few, staring to Few, staring to measure measure effectivenesseffectiveness

33 Many, Many, frequently frequently measure measure effectivenesseffectiveness

44 Practices and Practices and measures well-measures well-establishedestablished

55




GovernanceGovernance

practicespractices




ProcessProcess


ProcessProcess


ProcessProcess




Formal business Formal business strategy planningstrategy planning

Not done, or Not done, or done as neededdone as needed

11 At unit functional At unit functional level…slight SD level…slight SD inputinput

22 Some SD input and Some SD input and cross-functional cross-functional planningplanning

33 At unit and At unit and enterprise, with enterprise, with SDSD

44 With SD and With SD and partnerspartners

55

Formal SD Formal SD strategy planningstrategy planning

Not done, or Not done, or done as neededdone as needed

11 At unit functional At unit functional level…light level…light business inputbusiness input

22 Some bus. Input Some bus. Input and cross-and cross-functional planningfunctional planning

33 At unit and At unit and enterprise, with enterprise, with businessbusiness

44 With partnersWith partners 55

Organizational Organizational structurestructure

Centralized or Centralized or decentralizeddecentralized

11 Central/Decentral Central/Decentral some co-locationsome co-location

22 Central/Decentral Central/Decentral or federalor federal

33 FederalFederal 44 FederalFederal 55

Reporting Reporting relationshipsrelationships

Junior SD Junior SD manager report manager report to HRto HR

11 SD Director to HRSD Director to HR 22 SD Director to CPOSD Director to CPO 33 SD Director to SD Director to CFOCFO

44 SD Director to SD Director to CEOCEO

55

How SD is How SD is budgetedbudgeted

Cost center, Cost center, spending is spending is unpredictableunpredictable

11 Cost center by Cost center by unitunit

22 Some projects Some projects treated as treated as investmentsinvestments

33 SD treated as SD treated as investmentinvestment

44 Profit centerProfit center 55

Rationale for SD Rationale for SD spendingspending

Reduce costsReduce costs 11 Productivity, Productivity, efficiencyefficiency

22 Also a process Also a process enablerenabler

33 Process driver, Process driver, strategy strategy enablerenabler

44 Competitive Competitive advantage, advantage, profitprofit

55

Senior level SD Senior level SD Steering Steering CommitteeCommittee

Don’t haveDon’t have 11 Meet informally as Meet informally as neededneeded

22 Formal committees Formal committees meet regularlymeet regularly

33 Proven to be Proven to be effectiveeffective

44 Also includes Also includes external external partnerspartners

55

How Projects are How Projects are PrioritizedPrioritized

React to React to business or SD business or SD needneed

11 Determined by SD Determined by SD functionfunction

22 Determined by Determined by business functionbusiness function

33 Mutually Mutually determineddetermined

44 Partners’ Partners’ priorities are priorities are consideredconsidered

55




PartnershipsPartnerships

practicespractices




ProcessProcess


ProcessProcess


ProcessProcess




Business Business perception of SDperception of SD

Cost of doing Cost of doing businessbusiness

11 Becoming an Becoming an assetasset

22 Enables future Enables future business activitybusiness activity

33 Drives future Drives future business business activityactivity

44 Partner with Partner with business in business in creating valuecreating value

55

SD’s role in SD’s role in strategic business strategic business planningplanning

Not involvedNot involved 11 Enables business Enables business processesprocesses

22 Drives business Drives business processesprocesses

33 Enables or Enables or drives business drives business strategystrategy

44 SD, business SD, business adapt quickly to adapt quickly to changechange

55

Shared risks and Shared risks and rewardsrewards

SD takes all the SD takes all the risks, receives risks, receives no rewardsno rewards

11 Sd takes most Sd takes most risks with little risks with little rewardreward

22 SD, business start SD, business start sharing risks, sharing risks, rewardsrewards

33 Risks, rewards Risks, rewards always sharedalways shared

44 Managers Managers incented to incented to take riskstake risks

55

Managing the SD Managing the SD business business relationshiprelationship

SD-business SD-business relationship relationship isn’t managedisn’t managed

11 Managed on ad Managed on ad hoc basishoc basis

22 Processes exist Processes exist but not always but not always followedfollowed

33 Processes Processes exist and exist and complied withcomplied with

44 Processes are Processes are continuously continuously improvedimproved

55

Relationship/trust Relationship/trust stylestyle

Conflict and Conflict and mistrustmistrust

11 Transactional Transactional relationshiprelationship

22 SD becoming a SD becoming a valued service valued service providerprovider

33 Long-term Long-term partnershippartnership

44 Partner, trusted Partner, trusted vendor of SD vendor of SD servicesservices

55

Business Business sponsors/ sponsors/ championschampions

Usually noneUsually none 11 Often have a Often have a senior SD senior SD sponsor/championsponsor/champion

22 SD and business SD and business sponsor/champion sponsor/champion at unit levelat unit level

33 Business Business sponsor/sponsor/

champion at champion at corporate levelcorporate level

44 CEO is the CEO is the business business sponsor/sponsor/

championchampion

55




Human Human ResourcesResources

practicespractices




ProcessProcess


ProcessProcess


ProcessProcess




Innovative, Innovative, entrepreneurial entrepreneurial environmentenvironment

DiscouragedDiscouraged 11 Somewhat Somewhat encouraged at encouraged at unit levelunit level

22 Strongly Strongly encouraged at encouraged at unit levelunit level

33 Also at Also at corporate levelcorporate level

44 Also with Also with partnerspartners

55

Key SD HR Key SD HR decisions made decisions made by:by:

Top business Top business and SD and SD management at management at corporatecorporate

11 Same, with Same, with emerging emerging functional functional influenceinfluence

22 Top business and Top business and unit management; unit management; SD advisesSD advises

33 Top business Top business and SD and SD management management across firmacross firm

44 Top Top management management across firm and across firm and partnerspartners

55

Change readinessChange readiness Tend to resist Tend to resist changechange

11 Change readiness Change readiness programs programs emergingemerging

22 Programs in place Programs in place at functional levelat functional level

33 Programs in Programs in place at place at corporate levelcorporate level

44 Also proactive Also proactive and anticipate and anticipate changechange

55

Career crossover Career crossover opportunitiesopportunities

Job transfers Job transfers rarely occurrarely occur

11 Occasionally Occasionally occur within unitoccur within unit

22 Regularly occur Regularly occur for unit for unit managementmanagement

33 Regularly occur Regularly occur at all unit levelsat all unit levels

44 Also at corporate Also at corporate levellevel

55

Cross-functional Cross-functional training and job training and job rotationrotation

No opportunitiesNo opportunities 11 Decided by unitsDecided by units 22 Formal programs Formal programs run by all unitsrun by all units

33 Also across Also across enterpriseenterprise

44 Also with Also with partnerspartners

55

Social interactionSocial interaction Minimal SD-Minimal SD-business business interactioninteraction

11 Strictly a Strictly a business-only business-only relationshiprelationship

22 Trust and Trust and confidence is confidence is startingstarting

33 Trust and Trust and confidence confidence achievedachieved

44 Attained with Attained with customers and customers and partnerspartners

55

Attract and retain Attract and retain top talenttop talent

No retention No retention program; poor program; poor recruitingrecruiting

11 Sd hiring focused Sd hiring focused on technical skillson technical skills

22 Business focus; Business focus; retention programretention program

33 Formal Formal program for program for hiring and hiring and retainingretaining

44 Effective Effective program for program for hiring and hiring and retainingretaining

55

Practice Categories Practices

1 Understanding of business by SD 1 1.5 2 2.5 3 3.5 4 4.5 5

2 Understanding of SD by business 1 1.5 2 2.5 3 3.5 4 4.5 5

3 Organizational Learning 1 1.5 2 2.5 3 3.5 4 4.5 5

4 Style and ease of access 1 1.5 2 2.5 3 3.5 4 4.5 5

5 Leveraging intellectual assets 1 1.5 2 2.5 3 3.5 4 4.5 5

6 SD-business liaison staff 1 1.5 2 2.5 3 3.5 4 4.5 5

7 SD metrics 1 1.5 2 2.5 3 3.5 4 4.5 5

8 Business metrics 1 1.5 2 2.5 3 3.5 4 4.5 5

9 Link between SD and business metrics 1 1.5 2 2.5 3 3.5 4 4.5 5

10 Service level agreements 1 1.5 2 2.5 3 3.5 4 4.5 5

11 Benchmarking 1 1.5 2 2.5 3 3.5 4 4.5 5

12 Formally assess SD investments 1 1.5 2 2.5 3 3.5 4 4.5 5

13 Continuous improvement practices 1 1.5 2 2.5 3 3.5 4 4.5 5

14 Formal business strategy planning 1 1.5 2 2.5 3 3.5 4 4.5 5

15 Formal SD strategy planning 1 1.5 2 2.5 3 3.5 4 4.5 5

16 Organizational structure 1 1.5 2 2.5 3 3.5 4 4.5 5

17 Reporting relationships 1 1.5 2 2.5 3 3.5 4 4.5 5

18 How SD is budgeted 1 1.5 2 2.5 3 3.5 4 4.5 5

19 Rationale for SD spending 1 1.5 2 2.5 3 3.5 4 4.5 5

20 Senior Level SD Steering Committee 1 1.5 2 2.5 3 3.5 4 4.5 5

21 How Projects are Prioritized 1 1.5 2 2.5 3 3.5 4 4.5 5

22 Business perception of SD 1 1.5 2 2.5 3 3.5 4 4.5 5

23 SD's role in strategic business planning 1 1.5 2 2.5 3 3.5 4 4.5 5

24 Shared risks and rewards 1 1.5 2 2.5 3 3.5 4 4.5 5

25 Managing the SD-business relationship 1 1.5 2 2.5 3 3.5 4 4.5 5

26 Relationship/trust style 1 1.5 2 2.5 3 3.5 4 4.5 5

27 Business sponsors/champions 1 1.5 2 2.5 3 3.5 4 4.5 5

28 Innovative, entrepreneurial environment 1 1.5 2 2.5 3 3.5 4 4.5 5

29 Key SD HR decisions made by: 1 1.5 2 2.5 3 3.5 4 4.5 5

30 Change readiness 1 1.5 2 2.5 3 3.5 4 4.5 5

31 Career corssover opportunities 1 1.5 2 2.5 3 3.5 4 4.5 5

32 Cross-functional training and job rotation 1 1.5 2 2.5 3 3.5 4 4.5 5

33 Social interaction 1 1.5 2 2.5 3 3.5 4 4.5 5

34 Attract and retain top talent 1 1.5 2 2.5 3 3.5 4 4.5 5

Communication

Metrics

Tally Sheet

Averaged ScoresAverage Category

HumanResources

Governance

Partnership

Your

Alignment

Score

Strategic Strategic AlignmentAlignmentMaturityMaturitySummarySummary

•Initial/Ad-Hoc process

•Committed process

•Established focused process

•Improved/ managed process

•Optimized process

Level 2

Level 1

Level 3

Level 4

Level 5

•COMMUNICATIONS: Business/SD lack understanding•COMPETENCY/VALUE: Some technical measurements•GOVERNANCE: No formal process, cost center, reactive priorities •PARTNERSHIP: Conflict; SD a cost of doing business•SKILLS: SD takes risk, little reward; Technical training

•COMMUNICATIONS: Limited business/SD understanding •COMPETENCY/VALUE: Functional cost efficiency•GOVERNANCE: Tactical at Functional level, occasional responsive•PARTNERSHIP: SD emerging as an asset; Process enabler•SKILLS: Differs across functional organizations

•COMMUNICATIONS: Good understanding; Emerging relaxed•COMPETENCY/VALUE: Some cost effectiveness; Dashboard established•GOVERNANCE: Relevant process across the organization•PARTNERSHIP: SD seen as an asset; Process driver; Conflict seen as creative•SKILLS: Emerging value service provider; Balanced tech & business hiring

•COMMUNICATIONS: Informal, pervasive•COMPETENCY/VALUE: Extended to external partners•GOVERNANCE: Integrated across the org & partners•PARTNERSHIP: SD-business co-adaptive/improvisational•SKILLS: Education/careers/rewards across the organization

•COMMUNICATIONS: Bonding, unified•COMPETENCY/VALUE: Cost effective; Some partner value; Dashboard managed•GOVERNANCE: Managed across the organization•PARTNERSHIP: SD enables/drives business strategy•SKILLS: Shared risk & rewards

Contact InformationContact Information

Fernando HernandezFernando Hernandez

Microsoft Supplier Diversity DirectorMicrosoft Supplier Diversity Director

[email protected]

mailto:[email protected]

What we buyWhat we buyTelecom

Servers

Marketing & Events

Data Management

Temp Staffing

Content

Marketing & Events

Temp Staffing

Application Development

Localization

Marketing & Events

Consulting

Channel Sales Promotions

Call Center Services

Marketing & Events

Consulting

Temp Staffing

Localization

Manufacturing Services

Electronic Components

Marketing & Events

Engineering Services

Freight

Marketing & Events

Application Development

Temp Staffing

Marketing & Events

Consulting

Temp Staffing

Manufacturing Services

presented by: fernando j. hernandez microsoft supplier diversity director "building the...

Documents