Bank of America – Supplier Diversity and Development CMEDI – Monthly MBE & Corporations Meeting

1. Bank of America – Supplier Diversity and DevelopmentCMEDI – Monthly MBE & Corporations Meeting Tuesday, March 13th 2012

2. Bank of America’s Supplier Diversity and Development Program About the Program… Supporting diverse businesses Bank of America’s formalized Supplier Diversity & Development program began in 1990 to accomplish two main objectives: • Ensure that diverse businesses are afforded maximum opportunity to participate in our competitive contracting and procurement processes. • Increase the amount of quality products and services we obtain from diverse businesses, including small and medium sized businesses with annual revenue less than $50 million. Diverse Businesses include: • Minority-owned businesses • Women-owned businesses • Disabled person-owned businesses • LGBT–owned small businesses • Veteran-owned small businesses • HUBZone small businesses • Small to medium sized businesses

3. Bank of America’s Supplier Diversity and Development Program CEO Public Commitment Spend $10B in 5 years with diverse, medium and small sized businesses Supplier Diversity and Development Supplier Contract Standards MANDATORY Functions responsible for ensuring that supplier diversity goals are included in supplier contracts

4. Bank of America’s Supplier Diversity and Development Program1. Establishing Supplier Diversity Goals Establishing and implementing supplier diversity contract goals are part of the Sourcing process Diversity Goals Defined Line of Business Sourcing/Vendor Management Supplier Diversity Sourcing / Business Process Owner Vendor Management Line of Business Key Stakeholder Roles and Responsibilities - • Supplier Diversity and Development • Partners with Sourcing / Vendor Management teams to assist in developing specific supplier diversity contract goals • Provides diverse suppliers for various RFPs / RFIs • Manages diverse supplier pipeline through Supplier Diversity Development Program • Audits the adherence to Supplier Diversity Contract Language Standard • Sourcing / Vendor Management • Consistently and objectively evaluates potential Vendor solutions through competitive Bidding process • Mitigates Vendor Risk and ensures that contracts provide for adequate oversight of Vendors by leveraging standard contract terms and conditions • Maximizes value and minimizes risk by leveraging established Vendor relationships • Ongoing management of Vendor relationships throughout the contractual lifecycle • Line of Business • Defines business need for product and/or service • Defines Key Performance Indicators and Goals

5. Bank of America’s Supplier Diversity and Development Program1. Establishing Supplier Diversity Goals Do’s and Don’ts of Establishing Supplier Diversity Contract Goals… • Do… • Understand the opportunity for diversity spend - Is the opportunity direct or indirect? • Understand the Prime Supplier’s current indirect spend in order to establish the appropriate baseline • Take every opportunity to develop strategic plans to grow your Prime Supplier’s indirect spend • Help suppliers focus on Middle Market opportunities to better prepare them to do business with you • Don’t… • Assume that everyone is on board - Be clear about the value proposition of having supplier diversity spend goals • Over engage if there isn’t an opportunity - Utilize Key Stakeholder’s time on impactful opportunities • Set arbitrary goals - Go for the biggest impact

6. Bank of America’s Supplier Diversity and Development Program1. Establishing Supplier Diversity Goals Managing Exceptions… Supplier Diversity Contract Exceptions

7. Bank of America’s Supplier Diversity and Development Program2. Driving Supplier Diversity Goals Through the Organization Critical Components to Driving Diversity Goals through the Organization… • Escalation Process – • Escalation path for not following policy should be clearly defined • Escalation should be considered early in the sourcing process • Escalation should remove roadblocks, not create them • Exceptions and escalations should be documented • Supplier Diversity & Development Program Alignment – • Program should be aligned to key stakeholder organizations responsible for executing supplier selection processes • Program processes should align and integrate with Sourcing processes • Supplier Diversity Standard – • Must be clear and concise • Should be mandatory • Must be openly communicated and effectively documented • Must be detailed enough to provide direction • Auditing and Reporting of Program – • Reporting diverse supplier spend is just one component of reporting • Reporting should include other key metrics that articulate the value of the program (i.e. - # of new contracts with supplier diversity goals, # of contracts renewed with supplier diversity goals) • Contracts should be audited to measure policy compliance, effectiveness and success

8. Bank of America’s Supplier Diversity and Development Program3. Finding Opportunities for Diverse Suppliers Knowing where to look and what to look for is important to finding opportunities…. • Spend • Understand the commodity spend • Develop a way to find where the gaps in spend are within a commodity for diverse suppliers • Risk • High risk commodities, services and/or processes that are outsourced, benefit by having a diverse supplier base • Development Opportunities • Engage Subject Matter Experts when developing supplier diversity strategies (I.E. – key risks, market landscape, supplier development, etc.) • Actively look for and commit to developing a diverse supplier pipeline for identified commodity categories • Identify both primary and secondary diverse suppliers • Make sure to educate decision makers about the opportunity

9. Bank of America’s Supplier Diversity and Development Program4. Incenting Sourcing / Vendor Management to drive supplier diversity The Supplier Diversity and Development Program makes it easier for Sourcing/Vendor Management to execute diversity goals… • Spell it Out • The Supplier Diversity and Development Program should be easy to understand and simple – remove the noise • Define roles and responsibilities • Act as a Consultant to Key Stakeholders • Listen to what Key Stakeholder have to say • Offer meaningful solutions • Executive Buy-in and Commitment • Bank of America’s $10B/5yrs public commitment • Drive Accountability • Establish a reporting process and mechanism • Develop and Implement audit processes and routines • Create a quality performance metric for Sourcing and Vendor Managers