#FISPA2016 Leading in an Ever Changing Environment? Jerry James Jerry James & Associates Principal/CEO

#FISPA2016 “The things we fear most in organizations— fluctuations, disturbances, imbalances—need not be signs of impending disorder that will destroy us. Instead, fluctuations are the primary source of creativity.” Margaret Wheatley, author, consultant

#FISPA2016 Quotable Moments “If you don’t know where you are going, you’ll probably end up somewhere else.”-Yogi Berra “ Don’t think there are no crocodiles because the water is calm.” -Malayan Proverb “Even if you are on the right track, you’ll still get run over if you just sit there.” -Will Rogers

#FISPA2016 External Factors Regulatory/Legislative Capital Market Technology

#FISPA2016 Industry Tipping Points= Change 1975 Carter Phone decision – CPE 1984 Divestiture- long distance 1996 Telecom Act- local competition 1990’s explosion of the Internet Dot Com collapse --reemergence Wireless explosion –Smartphones/APPs/Data Mega Mergers- Consolidation –LECs/Cable Explosion of social media-OTT video Multiple devices- Cloud Cybersecurity Open Internet

#FISPA2016 Market Changes... Competitive forces at work Wireless, VOIP, Triple-Play, BB Wi-Fi, Video, OTT Threat to Copper-”Last Mile” – high demand for fiber Demand for more capacity/faster data speeds Downward trend in pricing Content cost- multiple access methods Vendor Commoditization Customer Expectations with single product provider almost non-existent Multiple devices to be served Supply of Capital Investment returning- economy in flux Venture market normalizing slowly – favor asset based – diverse revenues Mergers/acquisitions – “need to get bigger” vs organic growth

#FISPA2016 Evident Truths Customer experience/expectations drives innovation and productivity, but not always profits Technology is constantly moving to a smaller footprint and faster speeds which creates more demand for increased bandwidth and access points People are getting more connected with multiple devices and functions which impact the network/security The more your company is focused on centers of customer excellence, the stronger your performance will be.

#FISPA2016 Role of a Leader To recognize growth/change To manage change – keep customer focus To adapt your leadership style to the life cycle of your organization and the changing environment. To develop others to lead To create and protect the corporate culture Protect the Brand

#FISPA2016 Strategic to Service

#FISPA2016 Focused on Execution

#FISPA2016 Grande Value Statement We will individually and as a Team Work cooperatively delivering what we said we would. Be honest and truthful showing respect for others. Be easy to do business with internally and externally. Serve our customers and communities with passion and commitment. Have fun!

#FISPA2016 Have you said or heard this? “ You can tell right away if a company really appreciates your business or just thinks you are an annoyance.” -Customer “… our “silver bullet” is the power of who we are and how we treat our customers.” Bill Morrow, former CEO, Grande Communications

#FISPA2016 Do your employees ride for the Brand?

#FISPA2016 Spend time “on” the business as well as “in” the business Anticipate – Expect the unexpected Have a plan to respond Reallocation of resources Communicate to your team Communicate to your shareholders Focus on your strengths Challenges are opportunities

#FISPA2016 THANK YOU Jerry James Jerry James & Associates Principal/CEO