Supplier Diversity Program. Building a Community of Diverse Suppliers

Transcription

1 Supplier Diversity Program Building a Community of Diverse Suppliers

2 1The marketplace is the driving force behind everything we do. 2 Our primary measures of success are customer satisfaction and shareholder value. 3 We are sensitive to the needs of all employees and to the communities in which we operate. 2

3 Overview These three basic principles underscore IBM s ongoing commitment to diversity in its workforce, customer base and supply chain. Building and maintaining a community of diverse suppliers increases IBM s opportunity to hear new ideas, apply different approaches, and gain access to additional solutions that respond to customer needs. Such collaboration helps IBM deliver innovation, quality products, and world-class service to a growing global marketplace characterized by an eclectic array of cultures in near and far-reaching populations. IBM s commitment to diverse suppliers is demonstrated by its rich corporate history. Founded in 1968, as IBM s Minority Supplier Development Program, over the last three decades, IBM has placed billions of dollars of business with its diverse suppliers. In 2000, IBM became the first Information Technology company to purchase more than $1 billion with diverse businesses and proudly joined the ranks of Business News USA s Billion Dollar Roundtable. In 2005, we surpassed $2 billion in expenditures with diverse businesses. IBM s supplier diversity program expands purchasing opportunities for businesses owned and operated by minorities, women, gay and lesbian, and veteran owned and operated businesses. This program increases opportunities for non-profit organizations that employ people with disabilities and for small businesses located in historically underutilized business zones (HUBZones). IBM s commitment to supplier diversity is an initiative pursued with vigilance and zeal; it is part of IBM s heritage, business plan, and future. For additional information on the information contained within this brochure, please contact Global Procurement s Program Director for Global Supplier Diversity: Michael K. Robinson mkrobins@us.ibm.com 3

4 Affiliations Corporate Leadership Since 1974 IBM has actively participated in the National Minority Supplier Development Council (NMSDC) and its regional councils. Other organizations which IBM actively participates in are: the Women s Business Enterprise National Council (WBENC), the National Association of Women Business Owners (NAWBO), the Native American Business Alliance (NABA), the National Society of American Indians (NSAI), the American Indian Association (AIA), the UIDA Business Services, the U.S. Hispanic Chamber of Commerce (USHCC), and the U.S. Pan Asian American Chamber of Commerce (USPAAC), and the National Gay and Lesbian Chamber of Commerce (NGLCC). IBM s Chairman and Chief Executive Officer states in corporate Policy Letter 137B:...The policy of the IBM Corporation is to provide diverse businesses the opportunity to participate in all areas of IBM s marketing, procurement, and contracting activities...this policy applies to all areas of expenditures, whether for products or services. Action should be taken by all IBM organizations to ensure that this policy is implemented and that there are programs which ensure IBM s performance against this commitment. IBM s Program Director for Global Supplier Diversity, Michael K. Robinson has corporate responsibility for implementing supplier diversity programs and measuring the success and growth of these programs for African Americans, Asian Americans, Native Americans, Hispanic Americans, Eskimos, Native Hawaiians, women, veterans, persons with disabilities, and GLBT, owned businesses. IBM's Supplier Diversity Program spans the globe by promoting the utilization of diverse suppliers in every country where IBM operates. At the same time, IBM adheres to the local laws and regulations regarding the implementation of global supplier diversity objectives. 4

5 Resources Strategy IBM recognizes a diverse supplier base is integral to its corporate objectives and strategic imperatives solidifying the connection between customer satisfaction and winning in the marketplace. An important element of IBM s Global Procurement organization is its Global Supplier Diversity department. This department provides functional guidance and support to all business units and ensures commonality of purpose and direction toward reaching supplier diversity goals. Attainment of supplier diversity goals are a personal performance measurement for employees across procurement. IBM s Global Supplier Diversity initiatives create business opportunities for diverse suppliers in all areas of IBM s procurement. These initiatives are centrally driven with the support of all business units and geographic locations. Procurement commodity teams, diversity program managers, site/commodity team diversity advocates, community relations managers, market development executives and technical teams support the overall effort. Together all these individuals ensure the successful implementation of IBM s supplier diversity strategy. IBM invests significantly in its supplier diversity initiatives each year. Funding is made available for outreach event sponsorship and attendance, scholarship programs, mentor/protégé programs, support of Historically Black Colleges and Universities, and equipment loans. 5

6 Implementation Training IBM utilizes several methods for providing supplier diversity training to its workforce. First, new employees receive an introduction to IBM s policies and practices concerning supplier diversity during mandatory new hire training. A supplier diversity course is available to the entire workforce through IBM s on-line Global Campus. Contracts are awarded to diverse suppliers to act as consultants and aid IBM with these course offerings by providing classes in multiple IBM locations. Program managers, business area managers, and procurement employees involved with IBM s Federal procurement activity are required to attend annual Small Business training. Finally, IBM employs use of web-based media to communicate its supplier diversity policies, practices and performance through its Intranet and Internet sites. and IBM s chief procurement officer. Upon agreement and acceptance of goals by all involved parties, the objectives are combined to form the corporate-wide IBM goal. Performance to established goals is then tracked on a monthly basis and is reviewed by first line through executive management levels. Diversity Advocates Meeting This 2-1/2 day session gathers together IBM procurement executives, diverse suppliers, invited presenters, and other guests. This event covers all aspects of IBM s diversity initiatives and includes training modules for both the IBM advocates and the suppliers. Goal Setting IBM Global Procurement requires U.S. purchasing managers and global commodity teams to submit strategies and objectives, in percentages and dollars, for purchases from diverse suppliers. The penetration level of each of the commodity teams is assessed based upon the availability of qualified suppliers. Plans are aggregated upward to senior purchasing executives for each purchasing location and commodity team. Goals are reported to and reviewed by the supplier diversity program director 6

7 Supplier Development IBM has a variety of business and technical resources dedicated to the development of its diverse suppliers. These programs include: Commercial Mentoring Program In 2003 IBM implemented a Commercial Mentoring Program. Currently, there are seven selected suppliers, each matched with IBM executives to be their mentor. Five of the suppliers are current suppliers with long term relationships but could still benefit from the nurturing of a mentoring relationship. Two companies are not currently suppliers to IBM, but are companies that have high potential. The mentoring program is intended to equip the suppliers to be better suppliers to IBM as well as arm them with tools to seek opportunities with other fortune 500 companies. Each relationship involves the Supplier Diversity Program Manager as well as the Commodity Advocate. Education IBM utilizes several educational programs designed to enhance and improve the business skills of diverse suppliers. These programs cover such subjects as quality, financial and management skills, strategic planning and technology. These businesses also participate in various procurement strategy and cost management courses at IBM with our procurement personnel. External Sponsored Mentor/Protégé Programs IBM presently has several mentor protégé programs. The first program began in 1997 with five protégé firms and is sponsored by the Defense Information System Agency (DISA). To date ten protégé firms have been served by IBM via this program. Examples of assistance provided through the mentor-protégé program include: Each new session begins with a one day session where each of the suppliers meet face to face with their Mentor, the IBM supplier diversity program manager responsible for the program, and the consultant. This consultant, a professor of management from one of America s top business schools facilitates our program via training which consists of the kick-off session, a 2-day retreat and finally a 1-day session within one year of the retreat to follow-up on the action items. Partnership Executive Program Business Developmental Assistance Needs Assessments Financial Services through IBM Global Finance 7

8 Special projects such as: Call Center Development, ISO 9000 Certification Preparation, Technical Education and training, Marketing Campaigns/ Lead Generation, Web Page Development, Customer Relationship Management. External Sponsored Joint Program In collaboration with the Tuck School of Business at Dartmouth College and the Women s Business Enterprise National Council, IBM has been the host of the Tuck/WBENC Executive Program since it s inception in The program takes place at our IBM Palisades, NY Executive Conference Center and features a full week of exciting classes, meaningful discussions, and networking opportunities. Since the idea for the program was the idea of an out of the box thinking IBMer, we have committed to being the host through 2010 at this time. Regional Town Meetings These one day sessions provide an interactive discussion between IBM procurement executives, managers, procurement personnel, and selected current and potential diverse suppliers. Supplier Facility Surveys In some instances IBM procurement engineers or quality control specialists conduct a facility survey to proactively identify areas needing improvement and assist, if needed, during a company s actual production run. Performance Feedback Procurement provides suppliers with timely feedback in order to recognize success and identify areas where additional effort is needed to meet our business needs. Equipment Loans IBM loans equipment to qualified diverse and small businesses which serves to increase their competitiveness for subcontracting opportunities. IBM Global Commercial Financing (IGCF) IGCF offers specialized financing programs for IBM suppliers. The relationship as an IBM supplier qualifies suppliers to take advantage of many financial service offerings. Specialized Small Business Investment Companies (SSBIC) These organizations, licensed and regulated by the SBA, provide equity and long-term financing, in addition to management assistance, to small business concerns owned by socially and economically disadvantaged individuals. 8

9 Global Expansion In 2003, IBM launched a Global Supplier Diversity outreach program. Our objective is to provide opportunities to diverse businesses where we operate around the globe. The program includes supplier education, development, and outreach events around the world, which is being developed by a team that includes representatives from Brazil, Canada, Europe, South Africa and the United States. IBM is a founding member of Integrare in Brazil, the Canadian Aboriginal and the Minority Supplier Council (CAMSC) in Canada, the East Midlands in the UK, and the Canadian Gay and Lesbian Chamber of Commerce. 9

10 University Involvement IBM Supported Scholarship Programs Diverse suppliers that demonstrate potential may participate in one of several IBM sponsored scholarship programs at the following institutions: Tuck Minority Business Executive Program, Dartmouth College University of Texas Community Minority Business Advancement program Kellogg Graduate School of Management, Northwestern University National Action Council for Minorities in Engineering (NACME) Spelman College Clark Atlanta University Diversity Campus Executive Program In this program IBM executives assist with broadening curricula in science, engineering and business for academic institutions where student populations are primarily minorities, women, and people with disabilities. 40 colleges and universities are currently participating. Faculty Loan Program IBM employees can be granted a one-year assignment (with full salary and benefits) to teach or perform administrative duties at colleges, universities, or related institutions. Since the inception of the program in 1971, over 1,000 employees have been loaned to 250 educational organizations. In the past four years, six employees were loaned to Historically Black Colleges or Universities. Those HBCUs are: Atlanta University Center Grambling State University Howard University 10

11 Recognition Following is a partial list of awards and recognition that IBM has received in recent years that closely align with our supplier diversity initiatives IBM was recognized by DiversityBusiness.Com as one of their Top Corporations 2005 IBM was recognized by DiversityBusiness.Com as one of their Top Corporations Michael Pagliaro was named Coordinator of the Year by the National Center for American Indian Economic Development. IBM was recognized by the Women's Business Enterprise National Council as one of their Top Corporations. IBM was recognized by Asian Enterprises as one of their Top Corporations IBM was recognized by the United Indian Development Agency as their Top Corporation Michael Pagliaro was named Coordinator of the Year by the National Center for American Indian Enterprise Development IBM received the Corporation of the Year Award from the Florida Minority Supplier Development Council Eileen Byme-Halczyn was named Buyer of the Year by the Florida Minority Supplier Development Council IBM was recognized by the Women s Business Enterprise Council as one of their Top Corporations IBM received the Frances Perkins Van Guard Award from the SBA Michael Pagliaro received the Advocate of the Year Award from the United Indian Development Agency Sherry Robison received the Shining Star Award from the Women s Business Development Center of PA/NJ/DE IBM received the Corporation of the Year Award from the Michigan Minority Supplier Development Council IBM received the Corporation of the Year Award from the New York and New Jersey Minority Supplier Development Council IBM received the National Corporation of the Year Award from the National Minority Supplier Development Council IBM was recognized by Asian Enterprises as one of their Top Corporations 11

12 2004 Theo Fletcher, VP Import Compliance Office received the President s Award from the Central South Texas Minority Business Council. IBM received the Corporation of the Year Award from the Central South Texas Minority Business Council. IBM was recognized by Asian Enterprise as one of their Top Companies for Asian Americans IBM was recognized by Div2000 as one of their Top Corporations IBM was named #3 on DiversityInc. magazine s Top 10 supplier diversity list IBM was honored at the Div2002.com Multicultural Awards Ceremony as the top U.S. company for business opportunities for women and minority owned firms. IBM received the National Corporation of the Year Award from the Florida Regional Minority Business Council. I. Javette Jenkins and Tom Trotter were recognized by the Women s Business Enterprise National Council with their 2003 Applause Award. IBM received the Corporation of the Year Award from the Florida Minority Supplier Development Council. IBM received the Corporation of the Year Award from the Women s Business Enterprise National Council IBM received the Corporation of the Year Award from the Women s Business Development Center of PA/NJ/DE Javette Jenkins received the TrailBlazer Award from the Black Business Professional Entrepreneurs IBM received the 2004 Department of Defense Mentor Protege, Nunn-Perry Award, sponsored by the Defense Information System Agency (DISA) IBM was recognized by the Women s Business Enterprise Alliance (Houston) as one of the Top 25 Corporate Champions in supporting women business owners. IBM was recognized with the Corporation of the Year Award by Race for Success, Inc. for demonstrating outstanding leadership and commitment to diversity and minority business development. I. Javette Jenkins received the Celebrating Business Women of Color Award from the Maryland/District of Columbia Minority Supplier Development Council. 12

13 Business Community Demonstration of IBM s commitment to the diverse supplier community is evidenced through our participation on several diversity boards. A sample of this participation includes: John Paterson Vice President, Chief Procurement Officer Vice-Chairperson, Board of Directors, National Minority Supplier Development Council Chairperson, NMSDC Executive Committee Theo Fletcher VP Supply Chain Compliance, Security and Diversity Board of Governors National Center for Asia- Pacific Economic Cooperation (APEC) Business Alliance for Customs Modernization (BACM) Howard University Supply Chain Management Advisory Board Amos Tuck School of Business Minority Business Executive Program Advisory Board Michael Robinson Program Director, Global Supplier Diversity Board Member, Diversity Information Resources Board Member, Women s Business Enterprise National Council Board Member, Women Presidents Educational Organization, N.Y. Member, N.Y. Department Minority Business Services MWBE Procurement Alliance Assistant to NMSDC Executive Committee Chair Board Member, Charlotte Mecklenburg Black Chamber of Commerce Hector Granda Procurement Director, BTO Procurement Delivery Procurement Advisory Board U.S. Hispanic Chamber of Commerce Tom Trotter Senior Operations Executive, Corporate Community Relations North America Vice-Chairperson, Dallas/Ft. Worth Minority Business Development Council Vice-Chairperson, Women s Business Council Southwest Irwin Drucker Program Director, Gay and Lesbian Supplier Relations Corporate Advisory Council, National Gay and Lesbian Chamber of Commerce Ann Fuller Certification Administrator Certification Committee of the Women Presidents Education Organization Board of Directors of the Connecticut Minority Supplier Development Council Charlie Arroyo Contract Administrator Board of Directors, Central/South Texas Minority Business Council 13

14 Contact Information Sherry Robison Program Manager, Supplier Diversity Advisory Board, Women s Business Enterprise Council of Pennsylvania, New Jersey and Delaware For more information, contact our Supplier Diversity team at: ibm.com/procurement On the left navigation bar: How to become a supplier Supplier diversity Michael Pagliaro Supplier Diversity Program Manager Board of Directors and Resource Board, National Center for American Indian Enterprise Development Resource Board, UIDA Business Services On the right navigation bar: Supplier diversity contact list William F. Page Buyer Vice Chair, Carolinas Minority Supplier Development Council 14

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