Small Business Resources

Change Agility: What it is and why it matters

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Hello and welcome.

(Visual Description: Scott Stearsman, Head of Small Business Banking, Truist

Truist Small Business Banking Webinar

“Change Agility: What it is and why it matters”

With guests Latonya Croney and Terri Bradly)

Scott: My name is Scott Stearsman, Head of Small business Banking at Truist. And I'd like to welcome you to today's conversation on change agility for small businesses and why it matters to you. I'm excited about today's conversation because we all know change is inevitable and it seems many of us find ourselves navigating change more and more over the last few years.

 We've been challenged with the pandemic and the resulting supply chain issues. And today, many of us are experiencing concerns about the economy, among many other things. I'm excited to dig in and talk about what it means to lead through change, the impact change can have on our mind and body and resources to effectively work through these responses. Joining me today in the discussion are LaTonya Croney and Terri Bradley.

Let me start by introducing Latanya Croney, Senior Vice President and Director of Leadership Development Programs at the Truist Leadership Institute.

(Visual Description: Latanya Croney, SVP & Director of Leadership Development Programs, Truist Leadership Institute)

She contributed to the strategic direction of Truist Leadership Institute and oversees the Leadership Development Team, which facilitates curriculum for Truist leaders at all levels corporate clients and philanthropic partners, ranging from emerging leaders to executive professionals. Terri Bradley is the founder and CEO of Brown Toybox, a company dedicated to black children, seeing themselves positively represented in every space, starting with a toy box and toy aisle.

(Visual Description: Terri Bradly, CEO and Founder, Brown Toy Box)

Terri is on a mission to disrupt the billion dollar toy industry by creating a brand that reflects the world we live in today. Before I turn it over to LaTonya to get us started in our discussion, I wanted to provide Terri a few minutes just to talk about your business and how you got here. You started in corporate America like us today.

You were brave enough to make the transition to be a small business owner. And just tell us about your business and how you made that transition.

Terri: Yes, Scott, so I never intended to be a small business owner. It was never on my roadmap at all. So I think what happened was I got to a place where I really was just looking for my purpose, right?

I was an executive. I had small children, married all these things that some personal life transitions. And in those personal life transitions, I really just started thinking, what is your purpose? What should you be doing? And I just heard a small voice said, Look at your life. Right? And so I looked at all the different things that had really made me who I was. Right. And part of that was, you know, who my mom was very important. My mom made sure that we had toys around us that represented us, that we had images around us that represented us. And at the same time, I kept hearing about this leaky pipeline and STEM right. And I thought, what could I do? What part?

How can I be a part of that change right? If there's a leaky pipeline in STEM? I know it's not an intelligence issue. It's an access and opportunity issue. So I thought, you know, be the change that you seek. Right. And I thought as a mom of four young kids, I can do something that can help kids be able to see themselves positively represented.

So, I started going down this rabbit hole of, you know, how do you how do you become a toymaker? Right. And I was just off to the races.

Scott: I love that. Be the change that you seek. That is powerful and so representative. What we're going to talk about today and our discussion. I also love that you started with purpose.

That means so much. And you hear that from our small business owners all the time that they got into it because it was their purpose and their passion. And you saw an opportunity that aligned to your purpose and you went after it. So that's terrific. We're going to talk much more about that in today's conversation. So, Latonya, I'll hand it over to you and let's dig in.

Latanya: Awesome. Well, Terri, its nice to meet you. Scott, thank you for having me. Let's go.

(Visual Description: This content does not constitute legal, tax, accounting, financial, or investment advice. You're encouraged to consult with competent legal, tax, accounting. financial, or investment professionals based on your specific circumstances. We don't make any warranties as to accuracy or completeness of this information.

We don't endorse any third-party companies, products, or services described here. And we take no liability for your use of this information.

©2022 Truist Leadership Institute. All rights reserved. truistleadershipinstitute.com

Truist Leadership Institute

V4 Productions)

So, Scott, you already framed the conversation on what we're going to talk about in terms of change, agility, what it is and why it matters. So let's just start with the definition of leadership.

Leadership is the art and science of creating an environment that inspires employees to implement critical strategies consistent with an organization’s beliefs and values.

Terri, as I heard you talk about how you got into this business, I love creating an environment that inspires. That's what resonates with me with this definition. And as we think about change and agility and how it matters, why it matters and how to move through it. Creating that environment is paramount. So the next thing that we think about at Truist Leadership Institute is organizations don't change.

Now, here's where people start to attack me. They always say, Nope, they do. Organizations go through mergers. They go through different reorganizations. It's not the organization itself that changes. It's us as people within the organizations that implement and then decide upon these changes. So, yes, organizations have changed, but if not the organization itself, it is the people that change.

 And since it's us that are changing, we need to understand what is the impact of stress on our brains through that change. Because then you can start to become more agile. Three Mental States The Impact of Stress on the Brain. You've got the comfort zone, stretch zone, panic zone. And within each of these zones, one part of your brain is in the driver's seat.

So let's take a look at this first one. So in our brain, the attentional system is composed of three pieces. The first one is the neocortex. So think about you getting dressed this morning. Did you really go through the steps in your mind or did it just happen automatically? That's neocortex. That's your autopilot. Next is prefrontal cortex, where your executive function lies is how here how do you solve your problems?

How do you analyze, make decisions? And then it's that tricky limbic system where all of your emotions originate. So these three make up the attentional system. So let's take a look at each of the zones having this knowledge. So the comfort zone, it says it in the name, it's comfortable you going from your house to your office. It's comfortable.

You don't have to expend energy or time to think about it. So you can see in this photograph or this image, your neocortex is at play. It's the one that's driving all of that activity. If it's routine, you're in the comfort zone. If it's the skill, you already know, you're in the comfort zone. And so from here, there's one of two ways you can go outside of this. Stretch zone.

That's where the magic happens. Your prefrontal cortex is the most active part of your brain, and it gets to do what it loves to do, which is think, which is solve, which is analyze, which is concentrating and focusing on opportunity. But in order to get to the stretch zone, you have to be intentional, because most of the time when a change happens, you're in panic.

You're in the panic zone. And now your limbic system has hijacked every part of your brain. Think about that toddler. Okay. Now, Terri, you got the toys, right? So think about your toddler. That that target. They said I would love a lollipop. You say no. Now that toddler is on the ground kicking and screaming and tantrum. That's limbic.

And most of us, when we are faced with a change, we go to panic real easy. Because your brain is hard wired to see threats five times more often than an opportunity. So in order for us to get to leading through this stretch, having that change agility, we have to be intentional. All right. Talk to me. How do you feel about this?

This is a panic zone. What are your thoughts?

Scott: I love your thoughts here, because our own research says and shows that many women, small business owners are feeling higher levels of stress than they have in the past. And so in your own experience, how are you leading through that and managing through that, and how have you overcome that as a small business owner?

Terri: Yeah, I think a lot of small business owners right now are kind of in that panic zone. Right. But, you know, I know that I can't be strategic and I can't be thoughtful when I'm there. Right. I know that I always tell my team, you know, the comfort zone doesn't work either, right? Right. You don't grow in the comfort zone.

You become complacent. Right. And as a small business owner, you've got to be able to be agile and innovative. Right. So you've got to be able to grow. So that panic zone. Am I going to make payroll? Am I going to be able to get that inventory? But we live there, right? Sometimes. And that's just a that's just a reality for small business owners.

And so there's the self-talk that I have to do to kind of bring myself down from that, right? I look at the reality, I look at my wins, I look at some of those kind of things like, Hey, you've been here before. We're going to get through this, right? So it's that kind of talking myself out of that panic zone that really seems to be the thing that that helps me through it.

Latanya: I love that. That you have been here before. You have already won. You've already had that accomplishment. It's like your read my notes, but you'll see that come up as we get into the strategy. So thank you. Thank you. And to your point, small business owners are living in this state sometimes too long. And when that happens, there is an impact long term on your body.

Think about what happened during the pandemic, that chronic position of stress leads to hypertension. It leads to high weight gain. It leads to lack of sleep. And to your point, Terri, you cannot lead from this spot, but your body will feel the impacts long after the stressor is gone if you're not careful. So some stress is healthy. Some stress is good.

But when it overrides everything and your limbic system is hijacking every thought that you have, your body will suffer. And the same can be said with your mind. Just as much as stress impacts your body, your mind can be impacted. And what I've learned as my in my time at the Leadership Institute is over time, the stress hormone of cortisol ends up damaging the neurons in your brain.

And when that happens, cognitive function is not possible. When that happens, your prefrontal cortex is not able to hit the driver seat. So you all respond to that. What about your mind? How does that impact you?

Terri: Well, for me, I think when it happens, you get in this almost depressive state, right? Right. Like I just when I'm in it, in it, I can't see my way out of it.

I have to take a moment. Right. Right. And do that self-talk. But when I'm deep in it, you're absolutely right. It does impact your mind. And you talk about how it impacts your body, like weight gain, no sleep, all those kind of things. I always know the state of my business based on the state of my body, Right?

So I've gained weight. I have not been sleeping all these different things. When things are better, you'll see a much more Slim Terri. Right. And that's okay. Right. And so I. I think you are dead on. And it really I think it really what you're saying and I'm sure that every small business owners like. Yes. Yes. Amen. Yes, absolutely.

Latanya: Okay. All right. So then let's unpack change. Let's unpack the two different dimensions of change, because most of us know about the event itself, that structural component of change. So can't make payroll. The pandemic shut down. Nobody's coming in. We're having to find clients. We're having to retain our employees in a different way because inflation's going up.

(Visual Description: Two Dimensions of Change

Structural Event

Processes / Systems / Functions

• Reporting Structure

• Processes and Resources

• Technology

• Reductions in Force/Layoffs

• Regulatory Requirements

• Merger/Acquisition

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So, the structural event is what most people think of when they think of a change. But the other dimension is the psychological response.

(Visual Description: Psychological Response

• The Process we go through to adjust to the new situation

• Emotions (fear, excitement, anxiety, suspense, disappointment

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©2022 Truist Leadership Institute. All rights reserved. truistleadershipinstitute.com)

How am I adjusting through the change? And so what most people often forget is that psychological emotional response. And unless you call it, you cannot go through it unless you call it you cannot get through it.

And so from the side of things, what I like to tell people is look at your beliefs. So let's go through a framework that we use at truest beliefs, behaviors, results, because I think this is what's going to be helpful here. Beliefs in our mind drives behaviors. Behaviors generate results, and then the results influence beliefs. It's a loop.

It's a loop. But what we are finding is conscious leaders understand that unless you unpack the beliefs, you can get behavioral change short term, but it won't be consistent or long term. The two have to align. You have to align the beliefs with what you see. But keep in mind what you see is not the belief. What you see is the behaviors, but beliefs, behaviors, results.

That's one of my favorite frameworks, and I would love to get your thoughts. What are you thinking? As I say, beliefs, behaviors, results.

Scott: Well, first thing comes to mind is the fact that you can influence your beliefs right from the beginning. And if you have that right at the front to say, my approach here is going to be different than maybe I would initially respond and have that positive impact on your beliefs really sets the tone for my behaviors.

Yes, If I come from a positive mindset that's going to influence my behaviors, those behaviors are going to drive results.

Yes, But question back at you would be what are some tangible way? So we say that, but it's easier said than done. Much the influence that possibly. What are some tangible ways small business owners can start from a positive standpoint? Are the things that they can do in practice to get there at the beginning?

Latanya: Okay. I want to pick up on what you said earlier Terri, is going back to what you have done. Remember, because I think when you're a small business owner, you're going at a pace that you oftentimes forget what your accomplishments are. So one of the tangible things I recommend is keeping a brag book. It doesn't have to be extensive. Just be something cute to put in your tote bag, your book, bag, but you’re writing down: what are your wins? It doesn't have to be huge. But on those days when you're far from center, you can go back and look at the tangible things you have done to remind yourself that it's in you. Maybe a little, maybe a little tucked deep now may need to be watered, may need to be invested in, but it's in you.

 And so that's one of my favorites. The other thing I would say is I have an accountability partner. His name is Daddy. And so on those days when I'm having a rough moment, he can pull me back to center quickly. But if he is not available, I have a recorded video of myself giving my pep talk that my daddy would love that.

And then that way, All girl. There it is. I see me. I see who I am in the lens of this video. So that recenter, you make it positive immediately. Yeah. And then third, your purpose. I love how we started our conversation. Purpose is huge and my purpose is to champion and create space for distinction and excellence.

I can't do that and pop off at the mouth. I can't do that and come in in a behavior that is not commensurate to somebody else knowing we are in this to win this. So that leads me to three strategies. Reframe, empower and model. We started with beliefs, and so the first strategy is to reframe what you believe.

Every day that I go from the office or from my house to the office, I say ten, I am statements on the drive. I reframe every negative thought I've ever had. Every negative thing that is in my head, whether I am magic, I am fire, I am unstoppable. That's what I'm saying. And so I can reframe getting back in touch with my beliefs quickly by articulating it out loud.

So any negative belief, any change that is perceived negative, you can reframe it. That's your choice. Second, empower, just like Terri said, you've already come through it. Don't discount your accomplishments. Take time to celebrate and encourage and empower everyone around you with the same message because you're going to have to model this. Everybody's watching. Everybody is watching.

And so if you show up negative, how do you think they're going to show up? So you've got to model it. So three very basic, not sexy strategies, but they are effective and imperative when we're intentional.

Scott: Love that. Yeah, it's great. How does that sound to you, Terri? As a small business owner, are these things that you can implement?

Terri: No, I think I definitely that all resonates with me so much. You know, I think that's so important in talking about those things because the small business, we don't really recount our wins. We just move on to the next thing. Exactly right. And so it really is important to kind of reflect back on that. But then also, I have a tribe of entrepreneurial friends that when I can't do it for myself, they speak life into me, right?

They help me dispel any limiting beliefs that I have. Right. I love. And so I call my girlfriends and they're like, Girl, do you know, do you remember when you did this? And you you started this with nothing. You started this at your dining room table, right? Yes. And so I'm like, I did do that. Right? And so yeah.

So I think everything you're saying is really is really resonating with me.

Latanya: Thank you. Of course. All right. Well, I'm going to leave you with a really good quote. This is one of my favorites. It is by Victor Frankel. When we are no longer able to change a situation, we are challenged to change ourselves. When we are no longer able to change a situation, we are challenged to change ourselves.

I hope that you recognize that all that is in your power is in your own hands. It already is. Everything that you need to be successful as a small business owner is already in you. Yeah, I love that quote. That's powerful.

Scott: So, Terri, taking that quote as an example, just from experience, has there been a challenge that you've had to personally overcome as a small business owner, that you've had to leverage that?

Terri: Yeah, absolutely. So you mentioned that at the beginning when you talk about supply chain crisis, right? Right. So at the end of 2022, we still couldn't get all of our inventory and then inventory started crashing into retailers. And so they canceled orders. Right. And so for a small business, it was crippling. And I was scared and I didn't know what I was going to do about my team and about business, all these different things.

And I had to just kind of take a pause, right. And get out of that panic zone. Right. And then really think, okay, what can we do? And then what I realized is that we needed to diversify our sales channels. Right. So. And saw that opportunity. Seize that opportunity. Started going after corporate partners who had CSR missions that aligned with our goals.

Right. Disrupting generational poverty through place them exposure, those kind of things. And so now that is a big core of our business. And we still have retail. So now we've been able to open up additional sales channels. So absolutely, yeah.

Scott: In that case, the adversity, yeah, created change which led to new revenue streams that I would have never thought of.

That's terrific. Yeah, absolutely powerful. But you got to lean into that change and be to the point change agility. Yes. And respond to it in the positive way and then create opportunity. Absolutely. Fantastic. Yeah. Yeah. Well, Latanya I've personally learned a ton from this conversation and discussion today. Terri, you've been amazing, sharing your personal experiences and I know inspired many of our small business owners that are out there today.

And look, our purpose here at Truist is to inspire and build better lives and communities. And we believe that in order to do that, we've got to start with the small business owner. How are they feeling? What's on their minds? How do we address the human behind that small business owner? And if you're a small business owner there that we're ready to help.

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So please stop by a local branch or call a small business banker at the number on your screen. You can also visit us at Truist.com for more information. We've provided also our QR code for easy reference here for you as well. Again, thank you for joining our webinar. We hope to see you again in future webinars and hope that everyone has a purposeful day.

Thank you.

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