91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California NAEP Innovators Forum Sandy Hicks, CPPB Chair, NAEP Innovators Forum & Past President NAEP AVP & CPO University of Colorado Doreen Murner Chief Executive Officer NAEP Sponsors: SciQuest & Huron Consulting Group

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 2 The Path to the Innovators Forum Started planning for the Innovators Forum in 2010 Recognized that the role of procurement has changed and is much more strategic o “This decade ( ) has witnessed first-hand the broad transformation of the procurement function from a tactical back-office department to a strategic function that can deliver strategic value across a wide-range of areas and is worthy of a C- level leader.” Aberdeen Group, November 2009, The CFO’s View of Procurement

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 3 Why did we want to do this? Gain perspectives from different areas and functions of higher education Continue to learn from each other and exchange ideas Provide insight to key strategic issues so that other institutions can benefit Deliver key knowledge and insights back to NAEP members

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 4 Who was involved Procurement Professionals o John Mayes, Yale University o Bill Cooper, Stanford University o Tom Kaloupek, Virginia Tech o Jim Hine, University of California San Francisco o John Riley, Arizona State University o Carol Barnhill, Arkansas State University o Mike Hardiman, University of Wisconsin o Rosey Murton, University of Illinois o Bruce Cherrin, University of New Mexico o Jack Zencheck, Yeshiva University o Joyce Haney, Penn State University

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 5 Business Officer o Trudy Pound Curtis, York University HR o Andy Brantley, CEO CUPA-HR APPA o Lander Medlin, CEO APPA AASCU o Dan Hurley, Policy Director, AASCU Huron Consulting Group o Derek Smith & Scott Hess SciQuest o Max Leisten, Dan Traub, Kristen Hoffman

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 6 Our Purpose NAEP Innovators Forum February 22-23, 2012 Miami, FL “The purpose of the forum is to engage in a discussion and analysis of the major issues impacting the educational institution and to better inform institutional stakeholders on alternative ways to approach these challenging issues.”

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 7 Objectives Engage a broad range of thought leaders in developing a better understanding of the challenges and intensity of change in higher education in the future Position our organizations with other associations in the higher education community as an invaluable contributor to the educational process Create a greater understanding of the educational marketplace, its future challenges and opportunities Establish a long term collaborative relationship with NAEP and its key volunteer officers Share the investment in intellectual capital

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 8 Objectives To identify and understand the key issues facing higher education today and over the next five years To document the magnitude of those issues and their impact across an institution To develop recommendations that provide institutions with information and a starting point for addressing these issues To gather our collective feedback and insight as a starting point for building a white paper that will be distributed through the NAEP

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 9 Shift Happens 2010

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 10 Critical Procurement Issues Purpose o To guide the conversations at your institutions o To provide a framework so you can impact your institution’s strategy and response to these issues Questions for Consideration o What issues do you feel are the most important to address? o Which issues will have the biggest impact on your institution or higher education? o Prioritize and define critical procurement issues

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 11 Top 8 Critical Procurement Issues Communicating ROI and Procurement’s Value Proposition o Procurement must be managed like a business o Use ROI to market procurement’s value o Target messaging to customers Manage Cost Savings and Revenue Generation o Procurement to take credit for initiatives o Continue to find “new” revenue opportunities

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 12 Leverage Technology o Eliminate non-value o Improve customer satisfaction o Utilization of spend analytics; generate metrics o Continuous improvement o Understand change management Strategic Plan o Institutional mission alignment o Demonstrate alignment o Scope of services

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Supply Chain o Manage supply chain & TCO o Institutionalize supplier diversity o Explore capital & operating projects o Knowledgeable about all sourcing spend Tactical to Strategic o Establish institutional alignment o Develop clear roles & responsibilities o Move from “what we do” to “what we add” o Spend management vs. transactional management o Develop internal policy & priorities

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Engage Users o Lead the change o Focus on the customer o Relationship management o Look outside of procurement Prepare Staff o Procurement needs skill set necessary to support “new” normal o Expand skills to remain competitive o Ongoing certifications, continuous learning o Engage HR o Become knowledge resource in other areas

91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California 15 What’s Next? What is happening next o Develop draft of White Paper (Late April) o Review White Paper (May/June) o Finalize White Paper Editing (July/August) o Publish White Paper (end of 2012)