2008 Best in Class: Supplier Diversity - for profit
Supplier diversity continues to be a strategic part of KeyCorp’s overall corporate strategy. In 2001, Key formalized its inclusion business strategy, seamlessly integrating supplier diversity into its entire procurement process and every line of business. This dedication has resulted in Key’s 2008 national spend of $85 million with minority suppliers and $24 million with minority suppliers in Northeast Ohio. This is the second consecutive year that Key has won this award. Effective strategies include:
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Key tracks metrics supporting the success of its supplier diversity strategy, including; d iversity as percentage of total spend and total revenue; n umber of diverse suppliers and their revenue growth; d iverse-supplier-development metrics; and recognitions received for supplier-diversity success from outside organizations
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The supplier diversity team attends Corporate Sourcing and Line of Business meetings to receive information on upcoming business opportunities, existing supplier relationships and information necessary to offer constructive feedback to Key suppliers. Attendance at supplier business presentations and contract reviews offers additional opportunities to provide feedback and support.
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CEO Henry Meyer has supplier diversity on his Corporate Scorecard, which is reviewed annually by the Board of Directors.
Key has developed an internal Capacity Building subcommittee with the goal of collectively building capacity within minority- and women-owned businesses (M/WBEs) across Key’s footprint through providing business resources and opportunities.
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Key has developed a Supplier Diversity Advisory Council (SDAC) composed of KeyBank senior leadership. The SDAC meets quarterly to e nsure that Key’s inclusion strategy receives attention, guidance, and encouragement from senior executives; s erve as advocates and liaisons identifying barriers to supplier diversity execution, and ensuring the success of program initiatives; s hare supplier diversity best practices; c hampion and assist M/WBEs in navigating Key while gaining access to potential business opportunities; and i ncrease business capacity and opportunities or M/WBE companies within each Line of Business.
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Key has a Tier II SDAC sub-committee focused solely on Tier II spending and reporting. Second tier language is incorporated into each applicable contract. As part of Key’s 2008 Integrated Branch Strategy, majority construction suppliers were encouraged to accept a 20 percent M/WBE goal (30 percent stretch).
"Despite the current economic downturn, diversity at Key continues to be aligned with our overall corporate strategy. We fundamentally believe that inclusion in our workplace, supplier base, and community outreach, is every Key employee's responsibility. This core value helps us create sustainable relationships. Relationships that support our reinvestment in the community and support our attempt to create an inclusive and collaborative environment that helps our businesses and communities grow and prosper."
Henry L. Meyer III, c
hairman and CEO, KeyCorp