Fall 2008 issue of Horizons

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

RubinBrown has been working with the Penn Traffic Co. as it has embarked on a turn-around venture. Penn Traffic is a billion-dollar grocery retailer and distributor. Its CFO summarizes his leadership methodology in the following comments:

The tone of an organization starts with its leadership. Those leaders who embrace the idea that change is not an option but an opportunity drive focused organizations that make the most of those opportunities and, as a result, ensure success in the future. RubinBrown Internal Audit’s business process transformation methodology assists dynamic organizational leaders in their efforts to successfully lead their teams to achieve strategic objectives of the organization.

“In my mind, there are three key ingredients for driving change effectively. First, a leader must lead change through example by embracing the change, not defending the status quo, while also allowing their team to experience learning from failure as well

Questions? Contact:

Steve Newstead, CPA, FLMI Partner-in-Charge Internal Audit Services Group 314.290.3325 steve.newstead@rubinbrown.com or Cathy Behnen, CPA, CIA Partner Internal Audit Services Group 314.290.3204 cathy.behnen@rubinbrown.com

as success. Second, it is absolutely critical to have complete honesty and integrity in your communication of change. That does not mean you make promises you cannot keep, but rather make sure people clearly understand why change is needed, what the expected benefit will be and how long it might take. Third, a leader of change must be willing to challenge and manage resistance to change. If you head into change thinking people will simply change because of your title or authority, you are sadly mistaken. Head into change knowing there will be pockets of resistance, and it is your job as a leader to knock down those barriers in the most efficient manner possible - some easy, some difficult. At the end of the day, change should drive improvement. If that is not a pillar for driving the change you are contemplating, it is probably not worth the effort or resources.” Tod Nestor Senior Vice President and Chief Financial Officer The Penn Traffic Co.

12 ◆ fall 2008 issue