1. Proprietary & Confidential. © 2014 NMSDC All rights reserved. Centers of Excellence A Business Module Approach

2. Centers of Excellence Definition Centers of Excellence are Regional Business Modules that serve to enhance Corporate minority business development through knowledge sharing and excellence in implementing NMSDC best practices.

3. NMSDC COE Business Module Defined A program for corporations which seek to strengthen/launch their minority supplier development activities The COE is composed of a network of regional groups of 8-10 corporations called “business modules” that have committed to significantly increase procurement from minority firms by implementing minority business development best practices from the National Minority Supplier Development Council, Inc. ® Each business module recruits 16-20 MBEs that match forecasted needs Corporations agree to mentor MBEs by providing access to internal corporate resources Business Module cycle is 18-24 months in duration Registration fee for corporations Participation does not guarantee an MBE a contract Capacity Building Activity Best Practices ModuleLeaderCorporation MBEs MBEs BuyingEntitiesBuyingEntities Regional Business Module NMSDC Centers of Excellence Regional Business Module Best Practice Performance Data

4. MEETING RULES OF CONDUCT Respect, Courtesy, and Professionalism must be Observed Share Responsibility Criticize Only Ideas Not People Question & Participate (when appropriate) Attend All Meetings Be On Time to Meetings Complete Assignments On Time Listen Constructively

5. COE Benefits Enhance Corporation’s minority business development process –Through structured environment, drive use of NMSDC best practices –Enhance understanding within the firm to support resource needs Provides increased business opportunities for both Corporate members and MBEs through learning from each other’s competitive strengths MBEs obtain an “insider’s perspective” on ways to conduct business with the Corporate Module members Expand impact of NMSDC and Regional Council network by advancing minority business development excellence

6. COE Methodology Identify opportunities Nominate MBEs based on forecast of opportunities Want at least two corporations with same opportunity Corporation can identify MBE and be integral part of their growth Lower risk by using NMSDC certified MBEs Self assessments

7. COE Corporate Member Responsibilities Designate a manager responsible for the execution and goals of this initiative Committed, active participation for at least 24 months Offer technical and mentoring assistance in at least one developmental area, such as legal, HR, engineering, quality, technical and management training Establish a Supplier Diversity process which includes NMSDC Best Practices Establish goals to increase the purchases with minority suppliers Provide forecasts of purchasing requirements

8. COE Corporate Member Responsibilities (cont’d) Identify business opportunities that accelerate minority business development, e.g., –Direct sourcing –Minority supplier merger/acquisitions of majority firms or spinoffs –Consolidation of tactical suppliers under lead minority supplier –Outsourcing of non-core or core operations to minority suppliers –Minority supplier joint ventures/strategic alliances Include MBE Module participants in all bidding opportunities where they can be reasonably expected to have the capability of providing the required products and services

9. Capacity Building Definition (Used in NMSDC Centers of Excellence Program) Developing an organization’s skills and capabilities, such as, leadership, finance, quality, management, technology, and providing access to information and knowledge, in order to build the organization’s effectiveness and sustainability

10. Capacity Building Examples Each corporate business module participant will offer capacity building in at least one developmental area Examples of Capacity Building Developmental Activities Quality Training Executive Education Proposal/RFX Development Financial Assistance Bonding Support Business Planning HR Management Project Management Strategic Selling Technical Assistance Engineering R & D Technology Transfer Partnerships/Strategic Alliances/JVs Branding

11. COE MBE Responsibilities Certification by NMSDC Regional Council CEO commits to attend all meetings Provide information necessary for the Corporate Module Members to assess their capability Fully evaluate the suggestions and assistance provided by the Corporate Module Members MBE’s CFO or other executive personnel may be requested to attend specific module activities Make every effort to meet or exceed the needs, both short- and long-term, of the Corporate Module Members in areas of quality, delivery and pricing Participation in COE does not guarantee an MBE a contract

12. COE Council Responsibilities National Council –Plan COE vision, strategies, and goals to achieve desired outcomes –Develop policies and procedures of COE –Establish regional business modules –Provide technical assistance and central repository –Ensure consistent deployment and issues resolution –Share learnings to update programs and services of NMSDC for mutual benefit Regional Council –Act as Host or facilitate securing meeting location(s) –Record and distribute proceedings of Module Meetings –Recommend pool of MBEs with qualifications to participate in Module –Consult regularly with NMSDC Centers of Excellence manager regarding progress of ongoing Module activities

13. COE Module Leader Responsibilities Implement policies and procedures of COE Coordinate meeting schedule and lead meetings Facilitate discussion during module meetings Support module activities and manage accountability of the group Collect and record results (financial and non-financial) of module Serve as liaison to review progress and issues with NMSDC Centers of Excellence manager

14. NMSDC BEST PRACTICES 1.Establish Corporate Policy and Top Corporate Management Support 2.Develop a Corporate Minority Supplier Development Plan 3.Establish Comprehensive Internal and External Communications 4.Identify Opportunities for MBEs in Strategic Sourcing and Supply Chain Management 5.Establish Comprehensive Minority Supplier Development Process 6.Establish Tracking, Reporting, and Goal Setting Mechanisms 7.Establish a Continuous Improvement Plan 8.Establish a Second Tier Program

15. Measures of Success-Ralph G. Moore & Associates (RGMA) Scale: Corporate Program Director Communications Plan Measurement of revenue contribution Mission critical joint ventures and strategic alliances Senior Management Leadership Tied to performance Objectives company-wide A “contact person” to answer phone calls No Tracking System No Materials No Trade Fairs No Budget No Outreach Level 4 Advanced Process Level 2 Basic Program Level 1 Beginning Program Level 3 Traditional Program Level 5 World Class Process Part-time diversity business coordinator Program Brochure Subcontracting Plans Limited Trade Fair Participation Compliance Driven No Ownership Visible Program Manager Some Program Collateral Materials Limited Program Tracking Local/National Diversity Business Organization Memberships Little Senior Management Involvement Outside Core Strategy Program Director Internal and External Identity Packages Measurement by business unit Diverse Vendors company-wide Involved Senior Management Tied to Procurement Objectives Infrastructure Elements Module Activity Moves Supplier Diversity Processes Forward

16. Measures of Success-Ralph G. Moore & Associates (RGMA) Scale: MBE Growth Strategy Leadership Marketing & Sales Customer Knowledge Customer Service Technology World-Class Business Partner Traditional Supplier Functional Area Advanced Suppliers Customer by Customer President, department managers President is top salesman supported by sales staff. Marketing strategy consists of generic website and standard brochure Limited President, staff respond to customer needs Local Area Network, website. Behind in customer technology implementation plan Develops long-term customer relationships CEO and Management Team Sales VP leads sales team. Advanced website Works with customer to solve supply chain problems Customer Service Team LAN, EDI and able to respond quickly to RFQs Acquisitions, JVs and strategic alliances. Researches industry trends; CEO, business unit presidents and board of directors Sales VP; Internal and External Identity Packages; On-line sales Understand industry solutions Resident Representative at Customer Site CIO, custom applications e- commerce ready Infrastructure Elements Module Activity Moves Supplier Diversity Processes Forward

17. Growth & Development General Business Acumen  Professionalism  How to Approach Fortune 500 Corporations  The Do’s and Don’ts  Strategy Planning  Your “Value Add”  Research  Networking  Leadership  Presentations  Business etiquette & behavior  The Right Ad  The Right Media  Mission  Branding  Marketing, Advertising, Public Relations, Collateral Material and Related Needs Marketing Advertising  The Process: Prospecting approach, pitch, close, follow up  The 2 Minute Pitch  Know your Audience and your audience’s customers Scope Mentoring Relationships cover one or more of the following components:

18. Growth & Development Technology & Technical Services Human Resources & Risk Management Globalization  Finance, Purchasing & Operations  Alliances, Partnering, JVs  Doing business abroad  Scalability  Capacity Building Methods  Business Plan  Financial Acumen  Mergers/Acquisitions  Personnel Management and Policies  Risk Management  Building Leases, etc.  Legal, insurance and other related professional areas  Systems and Servers  Reverse Auctions  Technology, hardware, software and related areas Scope cont.

19. COE Business Modules CAPACITY BUILDING –NMSDC BEST PRACTICES ASSESSMENT –MBE OPERATIONS AND NEEDS ASSESSMENT –LEARNING ACTIVITIES MENTORING –INFORMAL –ONE-ON-ONE –GROUP DEVELOPMENT PLANS ‒ CONTINUOUS IMPROVEMENT

20. Typical Business Module Schedule of Activities Months 2-4Month 1Months 7-12Months 3-6Months 13-24 Regional Council/Host Identification Corporate Module Member Identification Module Kickoff Corporate Best Practices Assessment Gap Analysis Commodity Needs Plan Development Identify MBE Participants Regional Council Orientation Session Corporate “Who We Are/What We Buy” Sessions Document Corporate-MBE purchases Document Corporate Member Resource Contributions MBE Capacity Assessments MBE Presentations Corporate Best Practices Review Corporate BP Development Plan Module Organization MBE Capacity Building MBE participation in Corporate Resource Contributions Advanced Program Development 2 nd Tier Program Development Program Tracking Systems Recognition Systems MBE Development Plan Minority Executive Education Leveraging Regional Council Programs Strategic Alliances Legitimate Minority JV Formation Financial Strategies Development MBE Participation in Strategic Sourcing Advance Program Tracking Systems Incentive Systems Revenue Contribution/Cost Savings/Dashboards MBE Financial Strategy Development Business Module Wrap-up New Business Module Launch Corporate/MBE Advance Strategy Development Corporate Program Development