Supplier Diversity Barbara Frankel SVP, Executive Editor July 21, 2015 1
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2015 DiversityInc Top 50 Companies for Diversity 4 1. Novartis Pharmaceuticals Corporation 2. Kaiser Permanente 3. PricewaterhouseCoopers 4. EY 5. Sodexo 6. MasterCard 7. AT&T 8. Prudential Financial 9. Johnson & Johnson 10. Procter & Gamble 11. Wells Fargo 12. Deloitte 13. Marriott International 14. Abbott 15. Accenture 16. Merck & Co. 17. Cox Communications 18. KPMG 19. General Mills 20. ADP 21. Cummins 22. IBM 23. Anthem 24. Eli Lilly and Company 25. Target 26. Kellogg Company 27. New York Life 28. BASF 29. Wyndham Worldwide 30. Comcast NBCUniversal 31. Dell 32. Aetna 33. Allstate Insurance Company 34. The Walt Disney Company 35. Northrop Grumman 36. Toyota Motor North America 37. TIAA-CREF 38. Colgate-Palmolive 39. TD Bank 40. Intentionally Left Blank 41. Time Warner 42. Nielsen 43. Monsanto 44. AbbVie 45. Kraft Foods 46. MassMutual Financial Group 47. Hilton Worldwide 48. Rockwell Collins 49. KeyCorp 50. Verizon Communications DiversityInc. Reproduction Prohibited.
Supplier-Diversity History 5 Started by President Nixon in 1969 as Executive Order Initially only for MBEs (Minority-Owned Business Enterprises) WBEs (Women-Owned Business Enterprises) added later Today includes businesses owned by LGBT people, people with disabilities and veterans with disabilities Early industry adaptors auto, telecom Biggest Historic Issues Certification Connecting to business case DiversityInc. Reproduction Prohibited.
Main Benefits of Supplier Diversity 6 Increased innovation and different solutions Also cited as benefit of more diverse workplace Building branding, reputation in diverse communities Building community wealth Helping small business grow Many suppliers are also customers DiversityInc. Reproduction Prohibited.
Supplier Diversity 7 % of Procurement Spent With Tier- I: 5.83% 5.39% 3.96% 3.15% MBE WBE Top 10 Top 50 DiversityInc. Reproduction Prohibited.
Supplier-Diversity Best Practices 8 Reports to Procurement Department (93% of Top 50) Diversity Department in frequent communication Adheres to company s business goals Procurement compensation linked to supplier-diversity goals (88% of Top 50) Verify authenticity of data (86% of Top 50) Use certified vendors only (WBENC, USLBN, National Gay and Lesbian Chamber of Commerce), scrub data DiversityInc. Reproduction Prohibited.
Supplier Diversity 9 % of Procurement Spent With Tier- II: 1.92% 1.9% 1.57% 1.33% MBE WBE Top 10 Top 50 DiversityInc. Reproduction Prohibited.
Supplier Diversity - Leading and Managing Successful Change Dr. L. Jay Burks Senior Manager, Supplier Diversity Comcast
Agenda Comcast NBCUniversal Overview Diversity & Inclusion Initiatives Supplier Diversity Program Overview Supplier Diversity Best Practices Cummings and Worley Change Model M.A.N.A.G.E. Your Supply Chain and Increase Opportunities for Diverse Vendors 2
Uniquely positioned at the intersection of media and technology Comcast Cable XFINITY TV XFINITY Internet Cable Networks XFINITY Voice XFINITY Home Comcast-Spectacor Other 3 *Minority interest and/or non-controlling interest. Slide is not comprehensive of all Comcast NBCUniversal assets Updated: July 14, 2015 Broadcast Digital & Other Film Parks
Diversity & Inclusion at Comcast NBCUniversal 4
Diverse Supplier Spend Results Spent over $2 billion with diverse vendors in 2014, an increase of 57.6% YOY and 127.3% over four years Spending with minority-owned businesses (MBEs) increased 87.0% YOY and 246.9% over four years Spending with women-owned businesses (WBEs) increased 106.0% YOY and 133.3% over four years $ in millions $2,000 $1,500 2010 2013 2014 $1,000 $500 $0 $902 $1,301 $2,050 $414 $768 $1,436 $499 $565 $1,164 Total Diverse MBE WBE 14
Supplier Diversity Best Practices 15
Five Dimensions of Change Leadership Motivating Change Creating readiness for change Overcoming resistance to change Creating a Vision Mission Valued outcomes Valued conditions Midpoint goals Developing Political Support Assessing change agent power Identifying key stakeholders Influencing stakeholders Effective Change Management Managing the Transition Activity planning Commitment planning Management structures 16 Sustaining Momentum Providing resources for change Building a support system for change agents Reinforcing new behaviors Cummings/Worley Essentials of Organization Development and Change
Motivating Change Overcoming Resistance to Change Changing consumer demographic Changing business owner demographic Business to consumer landscape Integral to revenue growth 17
Creating a Vision Valued Outcomes Diversity within our supply chain gives our company a competitive edge, helps inspire innovation and offers us invaluable insights into the interests and needs of our customers. Chief Procurement Officer, Comcast NBCUniversal - Peter Kiriacoulacos 18
Developing Political Support Identifying and Influencing Key Stakeholders External Joint Diversity Advisory Council Internal Diversity Council External Constituent Groups Hosted National Women s Business Council (NWBC) supplier diversity event in March 2015 19
Managing the Transition Management Structure and Activity Planning Develop ownership strategies Direct access to senior leadership Strong communications team Knowledge of data analytics comcast.com/diversityreport 20
Sustaining Momentum Providing Resources for Change Leverage solutions that utilize entire business Create awareness and change agents Celebrate successes Generate excitement 21
M.A.N.A.G.E. Your Supply Chain Increase Opportunities for Diverse Vendors Motivate Advocate Navigate Allocate Generate Evaluate 13
How we are developing the fundamentals of a sustainable Supplier Diversity Tier Two Program & Determining the Who, What, When & How that is right for us
It s all about business Understanding the business case Creating our business case
Scope Inviting suppliers to participate How often Software system Incentivization 1. Recognition/Awards 2. Supplier Measurement Systems
Supplier Measurement System
Communications Internal Dashboard SMS Annual Shoutout Annual supplier meetings Supplier Diversity Advisory Council External Million Dollar Club Sojourner Truth Award D&I Annual Report CSR Report
How deep to dive? Kellogg Requirements Diverse supplier name Category of diversity Certification number Issuing agency (NGLCC, NMSDC, NVSDC, WBENC, USBLN, etc.) Dollars spend Indirect & Direct We also ask Membership in a certifying agency? If yes, which? Attendance at a supplier diversity event? If yes, which? Diversity spend percentage of total spend
Next steps Launch new software Create compatible dashboard Update website to include educational library Continue alignment with procurement
Thank you! Stay in Touch: SupplierDiversity@Kellogg.com
2015 Web Seminar Schedule 32 Sept. 8 Hispanic Heritage Month Cultural Competency Sept. 22 Mentoring and Sponsorship/High Potentials Oct. 6 -- Disability Awareness Cultural Competency Oct. 13 Diversity Councils Nov. 3 Diversity Metrics Nov. 10 Religion in the Workplace Please contact customer service at webseminars@diversityinc.com DiversityInc. Reproduction Prohibited.
Thank You for Attending the Web Seminar 33 You will receive a follow-up e-mail from us containing the link to download this presentation for future reference The presentation will be available later this week Questions? Call (973) 494-0506 DiversityInc. Reproduction Prohibited.