1. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Leading During Change Daniel F. Jennings Ph.D., PE Andrew Rader Professor of Industrial Distribution Texas A&M University

2. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 2 Leading During Change Managing the Business Addressing People Needs

3. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 3 Leading During Change If leaders fail to establish an effective balance between business and people priorities, then: Organizational culture is destabilized Trust is eroded Fear and skepticism are generated

4. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 4 Leading During Change Leaders must create and sustain an environment of trust How ?

5. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 5 Leading During Change Leaders must be comfortable with the tension of change. Leaders need to be adept with the twelve competencies of change* depicted in the following slide. Interestingly, these competencies appear to be contradictory. * Adapted from Kerry Banker & Michael Wakefield, “ Leading with Authenticity in Times of Transition” (CCL Press,2005); Micheal Useem, “Upward Bound: How Business Leaders Reached their Summit”( Crown Publishing,2003); John Kotter, “Leading Change” (Harvard Business School Press, 1996).

6. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 6 Coping with transitionCapitalizing on strengths About Right UnderdoneOverdone Going against the grain Realistic patience Being empathetic Realism and openness Trusting others Catalyzing change Sense of urgency Being tough Optimism Self-reliance TRUST

7. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 7 Balance #1 : Catalyzing Change / Coping with Transition Catalyzing change – Champion the initiative – Consistently promote the cause – Encourage others to follow Coping with transition – Recognize the personal and emotional elements of change – Address these elements

8. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 8 Balance #2 : Sense of Urgency / Realistic Patience Sense of urgency – Take action – Move fast – Accelerate the pace of change for everyone Realistic patience – Know when to slow down so that people can cope and adapt – Know how to slow down

9. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 9 Balance #3 : Being Tough / Being Empathetic Being tough – Make difficult decisions with little hesitation or second- guessing Being empathetic – Consider the perspectives of others – Understand the impact of your actions and decisions

10. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 10 Balance #4 : Optimism / Realism and Openness Optimism – See the positive potential of any challenge – Convey that optimism to others Realism and openness – Don’t shy away from difficulties – Speak candidly about the true situation – Admit personal mistakes

11. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 11 Balance #5 : Self-Reliance / Trusting Others Self-reliance – Be confident in your own skills and abilities – Be willing to tackle new challenges as they arise Trusting others – Be comfortable with others doing their part – Stay open to the input and support of others

12. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution 12 Balance #6 : Capitalizing on Strengths / Going Against the Grain Capitalizing on strengths – Know your individual strengths – Know your organizational strengths – Apply these strengths to new situations Going against the grain – Over relying on past strengths can lead to behaviors that don’t work in new situations – Be willing to learn and try new things – Be willing to leave your comfort zone

13. © 2005 Thomas and Joan Read Center IDIS – 444 Ethics and Leadership in Industrial Distribution Daniel F. Jennings, Ph.D., P.E. Texas A&M University 3367 TAMU College Station, TX 77843-3367 Phone: (979) 845-4984 Fax: (979) 845-4980 djennings@tamu.edu © 2007 TAMU