Pascale Legros, Supplier Diversity Champion / Canada

Nancy Minchillo, Supplier Diversity Manager

Date: 02/21/2012

HP Global Supplier Diversity

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contained herein is subject to change without notice.

© Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

CAMSC Corporate Forum HP Global Supplier Diversity – Best Practices for Canada

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Nick Gunn

Vice President, Global Procurement, HP

Globalization will continue. Frequency of change, primarily driven by

technology, will continue to accelerate. Customers, (both internal and

external), will continue to demand innovative ideas to solve problems

and meet challenges of both globalization and accelerated technology.

Generally, MBE’s wishing to source to a multinational like HP will

find it hard to compete on the basis of scale - Corporations will

look to large strategic partners for greater value in pricing,

geographic reach, and scale.

Generally, MBE’s will find it equally difficult to compete on the

basis of cost- Small businesses are challenged to compete with the

pricing, geographic reach and scale of large strategic suppliers.

Consider forming strategic alliances with other MBE’s, particularly

for global opportunities.

MBE’s are frequently in a better position to compete on the basis of

INNOVATION – Innovation is something new or different being

introduced; introducing a new method or way –

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Brian Tippens

Director, Procurement Sustainability and Innovation

Global Procurement, HP

There is no global supplier diversity “cookie cutter-method”

for implementation. It is a mistake for companies to believe

they can be successful by simply adopting a “copy exactly”

approach and transporting the companies’ U.S. supplier

diversity tools, processes, and policies into non-U.S. locations.

While some process and policy consistency is required,

supplier diversity programs must be adapted to reflect the

cultural and societal norms of the geographies in which they

are implemented.

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CAMSC Corporate Forum HP Global Supplier Diversity- How it all started in Canada before 2008

Implementation date: 2005 Owners: GSCS Canada/Public Sector Business Unit Nbr of Program in place: 1 Executive Sponsor: EDS Canadian Leadership Team (CLT) Drivers:

Revenue Enablement Social Responsibility

Scope: Aboriginal, Minority and Women Owned Businesses Scale: Canada (and US)

Implementation date: 1958 Implementation date Canada: 2005 Owners: Global Procurement, Supply Chain and Logistic Nbr of Program in place: 3 Executive Sponsor: HP Executive Team, VP Global Procurement, GP Director of Global Supplier Diversity Drivers: Compliance Corporate Social Responsibility, Competition Scope: Country specific Scope Canada: Aboriginal, Minority and Women Owned Businesses Scale: Global (various country)

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CAMSC Corporate Forum

Program Goals: Increase diversity spend Increase RFP participation and/or Teaming Agreement

Diversity Supplier Database/List: Yes Reporting Capabilities: Yes Full Time Employee allocation:

½ FTE – Program Management 15-30% - Sourcing Team

Yr Performance goals establish/FTE: Yes Annual Budget Allocation: < 15K -20K Communication strategy:

GSCS Canada team update EDS Canada communication Bi-annually meetings/informal communications to PS accounts.

Partners: CAMSC

Program Goals: Increase diversity spend Increase RFP participation

Diversity Supplier Database/List: Yes Reporting Capabilities: Yes Full Time Employee allocation:

1 FTE – Program Management 15-30% - Diversity Champion

YR Performance goals establish/FTE: Yes Annual Budget Allocation: >150K Communication strategy:

Diversity Portal Meeting with HP CLT Corporate Citizenship Report

Partners: CAMSC

HP Global Supplier Diversity - How it all started in Canada before 2008

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CAMSC Corporate Forum

Define, Develop, Implement a Supplier Diversity Program:

Leverage best practices

Drive supplier diversity innovation and elevate performance

Enhance brand, visibility, and recognition of thought-leadership

Enable access to revenue and advance commitment to global citizenship

through global supplier diversity and procurement sustainability programs

Use the methodology known as “Plan-Do-Check-Act” (PDCA)

HP Global Supplier Diversity – The NEW and INTEGRATED program

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CAMSC Corporate Forum

Plan: Establish the objectives and the processes necessary to deliver results in

accordance with customer requirements and organizational policies.

1. Obtain commitment and funding from CEO and Executive Leadership

2. Define Mission and Drivers

3. Establish a dedicated team and provide training

4. Develop goals and strategies

5. Establish key relationships with Global/Local business councils

6. Establish a communication plan

Plan

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HP Shared Values

Global Citizenship

We fulfill our responsibility to society by being an economic, intellectual and social asset to each country and community where we do business.

CAMSC Corporate Forum 1. Clear Commitment

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HP Global Supplier Diversity History “Good citizenship is good business.”– HP Corporate Objective – 1958 HP established a Small Business Program

– 1968 HP and seven other major corporations established the first Minority Business Programs in the U.S.

– 1972 Minority Business Program formally institutionalized throughout all HP U.S. business units

– 1990 HP Women Business Program launched

– 1998 HP HUB Zone Program launched (Historically-Underutilized Business Zone)

– 1999 HP Disabled Veteran Business Program launched

– 2004 HP identified teams and expanded infrastructure to support international supplier diversity initiatives

– 2004 Supplier Diversity Program developed for the UK

– 2005-2006 Supplier Diversity Programs developed for Canada, France, Germany, and South Africa

– 2007 HP Supplier Diversity Mentor-Protégé Program launched

– 2008 HP Acquired EDS; includes USPS Small Business Liaison Office and DoD Mentor-Protégé Program

– 2009 Supplier Diversity Program established NGLCC corporate sponsorship

– 2010 Supplier Diversity Programs developed for Australia and China

– 2011 Expanded relationship with WEConnect International in Australia, Canada, China, UK

CAMSC Corporate Forum

Global Supplier Diversity Mission

Compliance

Corporate Social Responsibility

Competition

It is required by US Federal , State & Municipal laws; & emerging laws outside of the US

It is an Integral component of HP’s commitment to global supply chain social responsibility & corporate citizenship

HP’s customers, partners and the consumer marketplace require it

Pro

gra

m D

rive

rs

Enable access to revenue by ensuring a globally inclusive supply base

CAMSC Industry Sector 2. Define Mission and Drivers

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Global Supplier Diversity Key Capabilities

1 2 3 4 Compliance & Risk Mitigation

Revenue Enablement

Outreach & Advocacy

Supplier Development

Public & Private Sector reporting and other compliance activities

Leverage HP’s Supplier Diversity leadership to win in the marketplace through account & deal support

External support of underrepresented businesses to enhance HP’s image & brand

Develop & grow our smaller under-represented suppliers into HP Strategic Suppliers

Tier 1 and Tier 2 Reporting Client diversity reporting Performance Reporting

Supplier Diversity Database Revenue Enablement

Host > 20 events/yr Sponsor > 25 local councils Attend > 30 Supplier Forums

Mentor-Protégé Program Capacity Building

CAMSC Corporate Forum 3. Establish goals and strategies Goals are established each year by the Global Procurement organization

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contained herein is subject to change without notice. Confidentiality label goes here

HP Supplier Diversity Mentor-Protégé Program Overview

Mission:

Foster long-term relationships between HP and select minority and woman owned suppliers, providing guidance and support to the protégé company to facilitate growth, development and increase opportunities to compete for additional business.

Value:

Expands strategic relationship between supplier, stakeholders, and constituents

Opens collaboration and sharing of key priorities and direction

Delivers Innovation Collaboration Initiatives, (ICI’s)

Establishes clear business and delivery objectives and measures progress

Share best practices and experiences from lessons learned

Provides visibility and participation in key events

Extends mentorship from Protégé to another “Mentee”

CAMSC Corporate Forum

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Primary emerging markets for minority and women business focus

CANADA

Primary NGOs – Canadian Aboriginal Minority Supplier Council WEConnect Canada In-country supplier diversity drivers – • Emerging government and corporate focus on SME, Aboriginal and Woman Economic Participation • Corporate memberships supports major HP enterprise accounts

CAMSC Corporate Forum

5. Establish key relationship with Global/Local business councils

Verify supplier certification of Aboriginal, Minority and Woman-owned businesses Facilitate the introduction of diverse suppliers Obtain and share ideas and best practices on Supplier Diversity programs to enable continuous improvement and innovation

HP Global Supplier Diversity Outside The Americas

IN EMEA

UNITED KINGDOM / EUROPE Primary NGO – Minority Supplier Development UK (MSD-UK) WEConnect Europe

Primary Drivers – • Emerging government and corporate focus for BAME/SME Economic Participation • Corporate membership supports major HP enterprise accounts

IN APJ AUSTRALIA / CHINA / INDIA

Primary NGOs – Australian Indigenous Minority Supplier Council (AIMSC) Minority Supplier Development China (MSD-China) WEConnect International (Australia, China, India) Primary drivers – • Emerging government focus on Indigenous Economic Participation and Prosperity • Corporate membership supports major HP enterprise accounts

CAMSC Corporate Forum

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HP Sponsored External Organizations

NMSDC & Regional Affiliates:

WBENC & US Affiliates:

Non – US Advocacy Orgs:

Other US National & Regional Advocacy Orgs:

Other Partnerships:

US Advocacy Orgs:

CAMSC Corporate Forum

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CAMSC Corporate Forum

Communicate and promote your Supplier Diversity program

internally and externally to enhance image and brand

Externally:

Provide Supplier Diversity Program overview via Global Citizenship report

Include mechanism for suppliers to know “how to do business with”

Seek opportunities to be featured in magazines, newsletters, blogs

Internally:

Provide a Supplier Diversity portal which includes:

Program Overview Award Recognition

FAQ – Sales Support Tools & Resources

Supplier Diversity ASL Program updates and success stories

Link to contact team Mentor-Protégé Program

Establish a Supplier Diversity communication strategy

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CAMSC Corporate Forum

Do: Implement the process

Check: Monitor and measure processes, products and

services against policies, objectives and requirements for

the product and service, and report the results

Act: Take action to continually improve performance

Do-Check-Act

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CAMSC Corporate Forum

1. Obtain commitment and funding from CEO and Executive Leadership

1. Corporate values and goals

2. Executive Sponsor

2. Define Mission and Drivers

1. Must be aligned to your Corporate values, goals and objectives

3. Establish a dedicated team and provide training

1. Time allocation to support supplier diversity programs

2. Dedicated Program Manager

4. Develop goals and strategies

1. Who, What and How

5. Establish key relationships with Global/Local business councils

6. Establish a communication plan

1. Provide internal and external visibility

Key Take-away

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HP Leadership Beyond The Portfolio

Corporation of the Year -

2011

Top 50 Companies for Multicultural

Business Opportunities 2011 - 2012

#5 Company for Supplier

Diversity 2011

Multi-million dollar spend with Hispanic-owned Businesses

2010 - 2011

MILLION DOLLAR CLUB

AWARD WINNER

#1 Company

for Supplier Diversity

2012

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Thank you

www.hp.com/go/supplierdiversity