Aon Cornerstone Innovative Solutions
Nov 10, 2014
Aon Cornerstone Innovative Solutions
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ABOUT AON
Aon Corporation (NYSE: AOC) is the leading global provider of risk management, insurance and reinsurance brokerage and human capital consulting. For more information on Aon, log on to www.aon.com.
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PRIMARY OPERATING ENTITIES
Aon Corporation
Aon Risk Services Aon Benfield Aon Consulting
• Retail Brokerage• Captive Management• Affinity Programs• Select Personal Lines• Premium Finance• Claims Advocacy and Administration• Risk Assessment and Advisory
• Treaty reinsurance brokerage• Capital Markets• Financial Advisory• Analytics and Technical Services• Claims Management
• Employee Benefits• Human Resource Outsourcing• Compensation• Management Consulting• Communications• Strategic Human Resource Consulting
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AON - BEAUTY IN NUMBERS#1 Rated reinsurance intermediary, risk services broker, and human
capital consultant
37,000 Number of Aon colleagues around the world
500 Number of global offices
120 Number of countries in which Aon operates
$7.6B Total revenue generated by Aon in 2008
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BACKGROUND
Notes:1/Includes African American, Native American, Asian American and Hispanic AmericanSource: US Census Bureau
Minority Population/1
($M)
170% CAGR 11%
•US minority population set to grow 170% between 1995 and 2050
•In the last 10 years, corporate spend on minority-owned businesses in the NMSDC network has grown at a CAGR of 11%
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BACKGROUND
Source: US Census Bureau
• Between 1997 to 2002, revenues generated by African American-owned firms rose 25% to $88.8 billion.
• Between 1997 to 2002, revenues generated by Asian American-owned firms rose 24% to $326 billion.
• In 2002, revenues generated by American Indian / Alaska Native owned firms reached $26.9 billion.
• In 2002, revenues generated by Hispanic owned firms reached $220 billion.
• Revenue from minority-owned firms continues to increase over the years:
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BUSINESS CHALLENGES Diversity has become a significant component in the corporate strategies of
many companies.
More than filling a quota or checking a box – you want to establish partnerships with the best organizations that are prepared to deliver meaningful value to your business.
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Aon drives supplier diversity throughout its business by focusing on two major levers
Objective Plan Progress
Suppliers Provide diverse suppliers equal access to purchasing and sourcing opportunities
Continue to increase diverse spend year-over-year
Spend trending upwards due to integration throughout the sourcing and supplier management processes
Partners Drive new and existing business by providing innovative solutions delivered by or with diverse partners
Identify and recruit best-in-class diverse partners to deliver client solutions
Early one-off successes have lead to creation of several targeted partner recruiting programs (e.g. brokers and underwriters)
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Aon’s formal supplier diversity program maturing and has delivered strong results to date
“Supplier diversity community innovator”
“Expand program and drive results”
2009+
“Improve efficiency and influence”
2008
“Build a diverse foundation”
2006 - 2007
2005
First year of supplier diversity program
Focus on national supplier recruitment
Inventoried existing programs & suppliers
Developed initial opportunities shortlist
First Rainbow/PUSH supplier diversity presentation
Build out local peer and supplier network
All RFP’s reviewed for use of diverse vendors
First Rainbow/PUSH annual conference participation
Championed diversity as part of broad corporate restructuring
Industry first billable hour diversity tracking system
Driving diversity requirements with all large global vendors
All new contracts require tier two diversity tracking
Full engaged with NMSDC and continue to remain focused and active in the business diversity community
Strong community integration and expansion
Aon is recipient of 2009 Chicago United’s Bridge award
Continued refinement of the internal program along side increased effort to duplicate success through the diversity community
Aon first and only broker to participate in NMSDC
tradeshow
Aon participates on LaSalle Street Project
Panel
Aon’s utilization of Beeline in 2008
incorporated diverse spend of 33% ( of total
spend)
Aon to help lead supplier diversity initiative with all
major professional services firms
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The strategic sourcing process drives continuous improvement in delivering diversity and broader business goals
Cultivate
EvaluateMeasure
Assess
Assess Periodic reviews: Quarterly
and annual review of Tier I and II supply bases
Gaps assessment: Identify gaps in diverse coverage and targeted improvement opportunities
Leverage best tools: 3rd party database comprised of diverse suppliers from 300 public and private data sources
Cultivate Recruit: Actively seek and
recruit diverse suppliers Network: Coordinate with or
participate in major local and national diverse supplier development organizations and trade shows
Enable: Provide tool for diverse suppliers to register at Aon.com for inclusion in sourcing candidate pool
Evaluate Include: Diverse suppliers
included, when identified, in all new or renewal opportunities considered by Aon Strategic Sourcing
Prefer: When diverse suppliers cannot be identified, non-diverse suppliers with comparable supplier diversity programs are preferred
Inspect: Strategic Sourcing reviews non-diverse vendors’ supplier diversity programs for conformance and performance
Measure Quarterly vendor reporting:
Quarterly conformance reporting is required on Tier 2 sourcing expenditures by non-diverse suppliers managed by Strategic Sourcing
Annual performance audit: Annual audit performed by Strategic Sourcing evaluating supplier diversity expenditures across business units
Senior leadership involvement: Report includes details on supplier certification/classification and is reviewed by Aon officers
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Minority-owned
Small business
Woman owned
Other diverse businesses
Total =
Veteran owned
% total opportunity spend8.1% 9.0%
16.2%
Diverse spend increased appx. 7% over the last year
All categories increased or maintained existing levels
Diverse spending levels increased despite strong headwind from ongoing corporate restructuring efforts (the Aon 2007 restructuring plan and Aon Benfield restructuring)
Aon has made steady progress in improving diverse spend following a major corporate restructuring in 2006
Source – CVM minority sourcing identification analysis, Aon global sourcing team financial data
Aon’s target is 150% of the common 10-12% diverse spend goal for professional services firms
4.0% 4.5%5.1%
2.6%3.0%
7.2%
0.8%
1.1%
2.7%
0.4%0.1%
0.1%
0.3%
0.3%
1.1%
2006 2007 2008
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Aon drives supplier diversity throughout its business by focusing on two major levers
Objective Plan Progress
Suppliers Provide diverse suppliers equal access to purchasing and sourcing opportunities
Continue to increase diverse spend year-over-year
Spend trending upwards due to integration throughout the sourcing and supplier management processes
Partners Drive new and existing business by providing innovative solutions delivered by or with diverse partners
Identify and recruit best-in-class diverse partners to deliver client solutions
Early one-off successes have lead to creation of several targeted partner recruiting programs (e.g. brokers and underwriters)
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WHAT WE DO Aon Cornerstone’s institutional approach provides organizations with
distinctive client value through adaptive solutions that serve their cultural needs. We:
• Effectively combine Aon’s unmatched global risk and human capital resources and expertise with the MBE’s deep knowledge of cultural needs
• Create an established infrastructure to work with qualified MBEs, ensuring you are working with the top firms in the industry to achieve your diversity goals and supplier diversity spend objectives
• Provide formal training and mentoring programs for certified MBE partners and carriers to deliver the highest value for your organization
• Support the development of MBEs with the global resources and knowledge of Aon
• Provides unique distribution systems, products and services that can be adapted to meet your specific cultural needs
• Positions and markets diverse business solutions as an innovative and value added competitive multi-industry differentiator
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INSTITUTIONAL APPROACH – ADAPTIVE SOLUTIONS – CULTURAL KNOWLEDGEAon Cornerstone’s institutional approach provides organizations with distinctive client value through
adaptive solutions that serve their cultural needs
Aon Cornerstone brings together the global risk and human capital resources of Aon with the culture knowledge and experience of top MBEs to deliver distinctive value for clients
WHAT WE DO
INSTITUTIONAL APPROACHADAPTIVE SOLUTIONS & CULTURAL KNOWLEDGE
• Effectively combines Aon’s unmatched global risk and human capital resources and expertise, with the MBE’s deep knowledge of cultural needs
• Creates an established infrastructure to work with qualified MBEs, ensuring you are working with the top firms in the industry
• Provides formal training and mentoring programs for certified minority business enterprise partners and carriers to deliver the highest value for your organization
• Aon Cornerstone, delivers the best value add solutions with the best diverse partnerships in the industry
• Supports the development of MBEs in delivering value to clients by surrounding the MBEs with the global resources and knowledge of Aon
• Provides unique distribution systems, products and services that can be adapted to meet your specific cultural needs
• Your Aon Cornerstone solution starts with a detailed assessment and understanding of your cultural needs in order to increase your ability to achieve your diversity goals and supplier diversity spend objectives
• Building valuable, long term relationships with MBEs and acting as a mentor to ensure their development
• Position and market diverse business solutions as an innovative and value added competitive multi-industry differentiators
IN SUMMARRY:
HOW WE DO IT
PROOF POINTS