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Aon Cornerstone Innovative Solutions

Aon Cornerstone Innovative Solutions ABOUT AON

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Page 1: Aon Cornerstone Innovative Solutions ABOUT AON

Aon Cornerstone Innovative Solutions

Page 2: Aon Cornerstone Innovative Solutions ABOUT AON

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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.

Page 3: Aon Cornerstone Innovative Solutions ABOUT AON

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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

Page 4: Aon Cornerstone Innovative Solutions ABOUT AON

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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

Page 5: Aon Cornerstone Innovative Solutions ABOUT AON

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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)

Page 9: Aon Cornerstone Innovative Solutions ABOUT AON

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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

Page 12: Aon Cornerstone Innovative Solutions ABOUT AON

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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)

Page 13: Aon Cornerstone Innovative Solutions ABOUT AON

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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