1. 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

2. 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

3. 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

4. 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% % % % % % 8% 5% <2% = 100%
Communicating the Positive Aspects of the Program
Helps to Overcome Stereotypes

5. 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

6. 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

7. 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!

8. 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!

9. 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!

10. GSDP / Government Relations
Contact Information
Tizoc S. Loza
Corporate Manager
GSDP / Government Relations
Phone: