presented by: fernando j. hernandez microsoft supplier diversity director
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"Building the Corporate Business case". Presented by: Fernando J. Hernandez Microsoft Supplier Diversity Director. What is Strategic ?. Revenue enablement Innovation Cost efficiency. Is SD aligned with the Corporate Strategy?. Public Clients F500 Customer satisfaction - PowerPoint PPT PresentationTRANSCRIPT
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
Assessing SDAssessing SD
and Businessand Business
AlignmentAlignmentinin
MetricsMetrics
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)
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
Assessing SDAssessing SD
and Businessand Business
AlignmentAlignmentinin
GovernanceGovernance
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)
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
Assessing SDAssessing SD
and Businessand Business
AlignmentAlignmentinin
PartnershipsPartnerships
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)
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
Assessing SDAssessing SD
and Businessand Business
AlignmentAlignmentinin
Human Human ResourcesResources
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)
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
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