Chevron GPO-I Local Business Development (LBD) Program Strategy & Execution

Abstract

Chevron’s foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment, and benefit the communities. Chevron believes investing in basic human needs, education and training is important strategic resources for future development. Local businesses also are vitally important to strengthening communities, promoting greater economic and social stability. It will reflect our commitment to partnership, sustainability and capacity building. By supporting small and local company/cooperative, we develop new and cost-effective solutions that fuel our mutual growth. Chevron\'s investments in local businesses contribute to the overall development and prosperity of the communities, expand our supplier network, and demonstrate our commitment to diversity where we live and work. Based on that, Chevron GPO-I have implemented the Local Business Development(LBD) Program in Darajat field since 2007 and Salak field since 2008. The objective of this paper is to share our experience in developing local partners’ capabilities, frame work of study, work process, training program, coaching & counseling, monitoring and performance evaluation. The paper will elaborate our LBD program background & introduction, LBD program Vision/Mission/Objective, empiric studies & concepts, Framework & Program development workflow, Training program (soft skill & hard skill), coaching & counseling, time schedule, budgeting, and LBD program guideline (including Basic principles of LBD program, LBD Vendor definition, LBD project criteria, targeted area, local vendor administration requirement, LBD project scope of work, LBD bidding process flow, monitoring, scorecard, performance, etc). The paper is also completed with some graphic illustrations associated with Chevron GPO-I’s spending budget/expenditures to LBD Vendor and photos of LBD Vendor’s activities/projects. Despite all the challenges, we identify great opportunities to work on. But, we need more focus, support and commitment among all of stake holders to pursuit a more effective LBD Program implementation.