Northrop Grumman Corporation Connecting the Dots in Supply Chain USBLN National Conference September 30, 2014 Tizoc Loza Corporate Manager Small Business Initiatives Global Supplier Diversity Programs

Connecting the Dots in Supplier Diversity From Compliance to Alignment With Business Objectives Enhances Market Penetration Value Add Innovative Technology Critical for New Wins Strengthens Supply Chain Agile Receive Incentives A Diverse Supply Base Creates a Competitive Advantage

What is the Connection? Connecting the Dots Internal Marketing Budget Must Overcome Negative Myths, Stereotypes & Perceptions Budget Buy In from Very Top World Class Diversity Program Must Have a Budget to Manage Program, Outreach, Staffing, Travel, Advertising, Giveaways, Incentives Executive Support is Crucial, Allows for Visibility and Flow Down to Mid Management Awareness and Training Anyone Who Influences Buying Decisions Connecting the Dots

Internal Marketing Communicating the Positive Aspects of the Program Demonstrate the Impact to Bottom Line Provide Amount of Award Fee Received on Contracts Mentor-Protégé Dollars Indian Incentive Dollars Positive External Press Highlight Positive Small Business Success Stories Successful Teaming Relationships Meet and Exceed External Customer Requirements List All Awards and Recognition Ask Executive Management to Accept Creates Additional Focus on Program Highlights Your Company’s Community/Customer Involvement Supports “Outstanding Corporate Citizen” Concept Communication at All Levels is Crucial 27% 12% 12% 10% 8% 8% 8% 5% <2% = 100% Communicating the Positive Aspects of the Program Helps to Overcome Stereotypes

Be Careful to Manage the Budget and be ACCOUNTABLE Must Have Annual Dept. Budget Develop Budget Plan which Aligns with Company Objectives Budget Should Be Sufficient to: Hire Staff Necessary to Manage Program Support Advertising Requirements and Perform Strategic Outreach Travel Giveaways Exhibit Material Trade Shows Congressional Activities, Etc. Be Careful to Manage the Budget and be ACCOUNTABLE

Awareness and Training Supply Chain Program Management Contracts Marketing Engineering Engage Every Organization that can have an impact on Supplier Diversity Business Development/ Government Relations Quality Collaboration is Key to Success

Buy-in from the Very Top Executive Ownership is Crucial Tie Objectives to Executive Vision and Mission CEO Should Communicate Major Diversity Initiatives All GSDP Diversity Initiatives Should be included in an Annual Operating Plan which: Should be a Flow Down Requirement across Entire Enterprise Should be a Part of Company Business Objectives Should be Monitored and Accountable at the Executive Level Program Should be Monitored Frequently by Business or Sector Unit Implement and Track Corrective Actions Executive Buy-in is key!

Be a More Effective Change Leader Assess Current State Identify a Champion (One or More) Develop and Plan Your Strategy Elements: Business Case, Strategy, Processes, Metrics, Implementation Plan Ensure this Strategy is Anchored in the Corporation’s Culture and is in Sync with Overall Corporate Objectives Share Business Case and Strategy with your Champions You and your Champions Socialize the Business Case and Strategy to Change Agents within the Company This may take Time, may receive Push-back, Remain Focused You must be Relentless and Committed in your Focus to move Strategy Forward Be Prepared for Questions Celebrate all Wins and Share the Good News Obtain Buy-in For Implementation Create an Appreciation of How Supplier Diversity Benefits the overall Organization!

Be a More Effective Change Leader - Summary Each Company has a Distinct Culture, Know yours, Study it, Know where your Gaps are Learn to Maneuver thru the Maze Learn how to change a “No” to a “Yes” Track Successes AND Failures Correct Failures as soon as possible Develop Relationships W/Groups who Influence/Impact your success Become a Member of Internal Councils, Awareness is Key to keep the Program Sold KC-30 Tanker (Refueling the B2) Be Prepared to Lead!

GSDP / Government Relations Contact Information Tizoc S. Loza Corporate Manager GSDP / Government Relations Phone: 703.280.4073 tizoc.loza@ngc.com