1. Leading Change

2. LEADING CHANGE There are costs and risks to a program of action, but they are far less than the long range risks and costs of comfortable inaction. John F. Kennedy There are costs and risks to a program of action, but they are far less than the long range risks and costs of comfortable inaction. John F. Kennedy

3. Peter E. Lohaus’s (PEL) Bio 1998 – Present – College Business and Management Instructor for: The Metropolitan State College of Denver; Johnson & Wells University; University of Phoenix. 1998 – Present – College Business and Management Instructor for: The Metropolitan State College of Denver; Johnson & Wells University; University of Phoenix. 1998-2000 – Chairman of the Board – Sefar America Inc. 1998-2000 – Chairman of the Board – Sefar America Inc. 1990-1998 – President and CEO – Sefar America Inc. 1990-1998 – President and CEO – Sefar America Inc. 1976-1990 – Vice President & General Manager of Coorstek(formerly Coors Ceramics Company) 1976-1990 – Vice President & General Manager of Coorstek(formerly Coors Ceramics Company) 1968-1990 – America Feldmehle Corporation, Rosenthal USA Ltd., Dow Chemical Corporation. 1968-1990 – America Feldmehle Corporation, Rosenthal USA Ltd., Dow Chemical Corporation. Education – MBA University of Minnesota, B.S. Business Administration – University of Berlin. Education – MBA University of Minnesota, B.S. Business Administration – University of Berlin.

4. PEL’s Reasons For Change Low Profitability Low Profitability Non-Risk Management Style Non-Risk Management Style Lack of Empowerment Lack of Empowerment Loss Growth Opportunities Loss Growth Opportunities Inadequate Use of Technology Inadequate Use of Technology Competitive Threats Competitive Threats

5. PEL’s Approach To Leading Change Management Assessment and Change Management Assessment and Change Employee Feedback Employee Feedback Customer Feedback Customer Feedback Communication of Vision and Urgency Communication of Vision and Urgency Performance Measurements Performance Measurements Reward System with Short Term Wins Reward System with Short Term Wins

6. Leadership Values Trust Trust Honesty Honesty Relationship Management Relationship Management Compassion Compassion Open Communication Open Communication Fairness Fairness Continuous Change Continuous Change

7. Beth R. Richards (BRR) Bio 2002 – Currently Vice President, Chief Administrative Officer at U.S. Trust Company of New York 2002 – Currently Vice President, Chief Administrative Officer at U.S. Trust Company of New York 2000-2001 – Vice President, Institutional Business Manager 2000-2001 – Vice President, Institutional Business Manager JP Morgan Fleming Asset Management JP Morgan Fleming Asset Management Chase Fleming Asset Management Chase Fleming Asset Management 1996-2000 – Chase Asset Management, Inc. 1996-2000 – Chase Asset Management, Inc. –The Portfolio Group Inc., (Subsidiary of Chase Manhattan Corp.) 1983-1996 – Senior Vice President, 1983-1996 – Senior Vice President, 1991-1996 – Chief Financial Officer and Director 1991-1996 – Chief Financial Officer and Director 1985-1991 – Controller 1985-1991 – Controller 1983-1985 – Operation Officer 1983-1985 – Operation Officer 1982-1983 – Senior Trust Investment Administrator – Chemical Bank Trust and Investment Division 1982-1983 – Senior Trust Investment Administrator – Chemical Bank Trust and Investment Division Education – MBA Boston University, B.S. Economics – Brooklyn College Education – MBA Boston University, B.S. Economics – Brooklyn College

8. BR’s Reasons For Change Management’s need for the data to run the business Management’s need for the data to run the business Lack of an effective data retrieval system Lack of an effective data retrieval system Inconsistency of data report across all Business Lines Inconsistency of data report across all Business Lines

9. BR’s Approach To Leading Change Communicated the Vision Communicated the Vision Created a Guiding Coalition Created a Guiding Coalition –Team worked with each business group to validate appropriate data elements Created a sense of urgency Created a sense of urgency –Demonstration Confronted her obstacles Confronted her obstacles –Constantly reinforce the need to keep the data current –Had to deal with the “We can’t do it attitude” –People were not happy having to do the extra work of validating reams and reams of documents

10. Leadership Values Lead by Example Lead by Example Open Communication Open Communication Honesty Honesty Trust Trust Motivating Others Motivating Others

11. Leadership Similarities Communication Communication Performance Data Performance Data Validated Reasons For Change Validated Reasons For Change Fairness Fairness Discipline When Needed Discipline When Needed Listening Listening

12. Leadership Differences BRR – Hands On Management BRR – Hands On Management PEL - Delegated to Executive Staff but would become more involved when necessary. PEL - Delegated to Executive Staff but would become more involved when necessary. BRR – Change focused on internal data management. BRR – Change focused on internal data management. PEL – Change focused on corporate culture and performance. PEL – Change focused on corporate culture and performance. BRR – Middle Management BRR – Middle Management PEL – Company President PEL – Company President

13. Conclusion Trust is very important when leading change Trust is very important when leading change –Trust will evolve through communication which consists of listening, talking, and respect for others Change will always take place and we need leaders to guide people through the change process Change will always take place and we need leaders to guide people through the change process Leaders will always need to make difficult decisions which can upset an organization’s operating balance Leaders will always need to make difficult decisions which can upset an organization’s operating balance Leaders need to motivate employees and make them go the extra mile Leaders need to motivate employees and make them go the extra mile Leaders have to make employees owner of the change Leaders have to make employees owner of the change “No one ever washes a rental car”