Supplier Diversity John Gonzalez Deputy Chief Sourcing Officer September 24, 2014
Agenda What is Supplier Diversity? Why Supplier Diversity? Huntington s Commitment to Inclusion Supplier Diversity as a part of Sourcing Strategy Creating an Inclusive Supplier Base Benchmark Data Diversity Program Progression Discussion/Q & A 2
What is Supplier Diversity? Processes, systems and strategies that promote access to business opportunity without the barriers created by historical or present conditions derived from race, gender and/or other relevant categories.
What is Supplier Diversity?: Compliance Program to Strategic Imperative Increased size and purchasing power of US minority population forcing shift away from compliance-driven programs. Corporations starting to incorporate supplier diversity programs to support sales, gain access to new markets, and survive changing economy. New market dynamic customers consider company s diversity track record when purchasing. Ongoing success of Supplier Diversity relies on fusing to corporate culture and DNA.
Why Supplier Diversity? Competitive/Inclusive bidding process to drive savings Revenue generation Supports our brand Community Development & Investment (aligned to CRA) Local and National Recognition Supplier Development, Management, and Progression 5
Corporate Commitment 6
Supplier Diversity Manager Marlon Moore is the Vice President of Supplier Diversity for Huntington Bank. His primary function is the execution of their corporate supplier diversity strategy, the goal of which is to promote economic development and inclusion by creating and expanding business relationships with minority, women, veteran, LBGT, and disable owned companies. Marlon started with Huntington bank in 2012 when their spend with diverse companies was 5.5%. Through strategic relationship building and execution, Huntington is pleased to report that as of Q2 2014, its total procurement with diverse companies is 13.4% which bests the national average of 8-9%. Marlon is a doctoral candidate at the Chicago School of Professional Psychology and brings to the community a very diverse level of professional and speaking experiences. Through it all, Marlon strives to give back to the community. He serves on the Board of Directors for the Black Professionals Association Charitable Foundation (BPACF), Cleveland NAACP, the South Central Ohio Minority Supplier Development Council (SCOMSDC), the Ohio Minority Business Advisory Council, and the Diversity Center of Northeast Ohio. 7
Inclusion Overview Inclusion Strategic Themes Talent Optimization Skills Development Community & Customer Engagement Supplier Diversity Accountability Metrics & Measures Lead the development of an Inclusive Workforce that reflects the customers we serve and the communities in which we operate. Enable the creation of Culturally Competent leaders and colleagues. Guide the creation of an inclusive culture to Fully Leverage our diverse talent and cultural intelligence to win with our customers & communities. Drive Economic Inclusion in our supply chain and in the communities we serve. Ensure continual improvement in Outcomes, Progress & Perception of inclusion at Huntington. Business Driver Inclusion is an enabler of high performance 8
Corporate Sourcing Increasing savings expectations means doing things differently and better, continuously improving Savings Risk Maintaining a strong culture of risk management is critical from segment ownership to sourcing and 3PRM process governance Brand Promise Achieving 14% supplier diversity spend in 2014 Requires game change ideas in addition to keeping the pipeline full with RFP s Resource Optimization Supplier Diversity Resource optimization ensuring the highest and best use of every resource is crucial to our success Brand Promise to our segments streamlining the process, acting with a sense of urgency and providing value to the deal. Every role in sourcing is critical to these priorities 9
Creating an Inclusive Supplier Base Sourcing Project Stages Is there any potential impact to diverse spend? Have diverse suppliers been considered/incl uded in the RFP? Have 2 nd Tier conversations been held with non-diverse suppliers? Data Gathering RFx Creation RFx Live RFx Analysis Savings / Award Validation Complete Contracting Project Stages Has supplier diversity been informed of selected diverse business? Validate Legal Form Draft Contract Legal Review Review, Revise, Negotiate Purchase Requisition Routing Savings / Award Validation Complete When appropriate, does contract have 2 nd Tier language? CAF Routing 10
Economic Inclusion Business Council Come together with Huntington colleagues to share best practices and replicate successful strategies. Advocate and serve as a liaison within business segment. Support annual goal setting process (w/sourcing manager). Engage team members for subcommittees as necessary. Be prepared to report out during quarterly meetings (segment efforts and subcommittee progress). 11
Supplier profile form I encourage you to register as a supplier on our site using the link below. https://www.huntington.com/us/supplier.htm 12
Huntington Supplier Diversity Progress Achieve 14% spend with diverse business enterprises by 2014, through first and second tier relationships Tier 1 diverse spend Tier 2 16.0% 14.0% 12.0% Hired Supplier Diversity Manager July 2012 13.4% (YTD) 10.0% 8.0% 9.8% 6.0% 4.0% 2.0% 6.4% 5.5% 0.0% 2010 2011 2012 2013 2014 13
Creating an inclusive supplier base - Examples Evolv (MBE) Livehealthier (WBE) Mainline (VOB) Managed Print Services, break-fix, etc. Our wellness vendor, Live Healthier, offers colleagues access to expert assistance in lifestyle management and disease management via phone and online coaching sessions. A technology supplier that provides professional services and is a business partner for hardware purchases and support. 14
Benchmark Data *Characteristics of Top Supplier Diversity Programs Average 14.5% Tier I spend Mandate Tier II (average 4.6%) Average 5 employees in the supplier diversity department Tie procurement-management compensation to diversity goals Mentor suppliers and offer financial education and assistance Diversity Inc. Top 10 (2014) No. 1: AT&T No. 2: Wyndham Worldwide No. 3: WellPoint No. 4: Ernst & Young No. 5: Hilton Worldwide No. 6: KPMG No. 7: Marriott International No. 8: Keycorp No. 9: Accenture No. 10: Abbott *as listed by Diversity Inc. Magazine diversityinc.top10 supplier diversity/ 15
Diversity Program Progression 16
DISCUSSION/Q &A Thank you! 17