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Graybar Canada 2022: Innovation, Growth, and Change.

“Change is a process,” was the caption on the Graybar serves the construction market, the
change management workshop slide in late June commercial, institutional, government, utility,
of 2019 at Nova Scotia’s Pictou Lodge. The and residential markets. Graybar products and
Graybar Atlantic Region team was preparing for services support new construction projects,
a digital transformation initiative led by infrastructure updates, building renovation,
members of the Graybar Canada Marketing facility maintenance, repair and operations, and
team. “We’re approaching our 100-year original equipment manufacturing [2].
anniversary as a private Canadian company and
Graybar Electric Inc. was born of a rich history
we need to build our change muscle if we want
dating back over 150 years which was
to innovate and strengthen our market
summarized on their website in late 2019. The
leadership position,” said Jason Taylor the
content is no longer posted. The story of
Graybar Atlantic Regional Vice President at the
Graybar can be summarized as follows:
workshop conclusion.
1. Gray and Barton, founded Gray & Barton
Thirty managers and executives gathered for the
(Co.) in Cleveland in 1869
Atlantic Region Team retreat which included
2. In 1872 the partnership became Western
discussion of business results and plans, Electric Company
recognition, presentations from partners, 3. WEC became exclusive manufacturer of
learning, and some fun. After several rounds of telephone equipment for Bell
washer toss and a lobster boil where he was the 4. In 1825 WEC electrical distributor business
cook, and as the retreat drew to a close, Jason spun off into Graybar Electric Company
recognized the Atlantic Region team managers, 5. Ellis and Howard launched Ellis and Howard
“Thanks for all your hard work. Our customers (Co.) in Kitchener, Ontario in 1913
and partners appreciate it. I appreciate you. 6. Arthur Harrris and R.E.G. Roome founded
Please enjoy your summer.” Jason thought to Harris and Roome (Co.) in Halifax, Nova
himself, “We need to innovate and grow. How Scotia in 1930
7. Graybar Electric Company purchased Ellis
does a 100 year-old company’s team manage the
and Howard (Co.) in 1991
change coming our way? ”
8. Harris and Roome (Co.) was purchased
Graybar Canada and Graybar Inc. History by Roberts and MacDonald
9. Graybar Electric purchased an interest in
Graybar Canada is a subsidiary of Graybar Harris and Roome in 1997
Electric Inc., a Fortune 500 company and one of 10. Graybar Canada launches in 2001 combining
North America's oldest and largest electrical Graybar Ontario with Harris and Roome
distributors with over 288 locations and 8,400
employees, and 146,000 customers across the In 2020 Graybar Canada announced the
United States, Canada, and Puerto Rico. retirement of Executive Vice President and
Headquartered in Halifax, Nova Scotia, Graybar General Manager Brian Thomas who started his
Canada operates 36 branches across Canada [1] career with Graybar Canada, and its predecessor
with a team of 650 employees. Harris & Roome Supply, in 1987. Throughout his
39-year career in the electrical industry, Thomas
Graybar Electric Inc. specializes in supply chain
held a variety of sales and senior management
management services, and is a leading North
positions before being promoted to Executive
American distributor of high-quality electrical
Vice President and General Manager in 2016.
components, equipment, and materials.
Graybar Canada Case Jules Fauteux, PhD Page 1 of 5

This case is for teaching and learning classroom use. While many elements of the case are real some are fictitious.
“I will miss the amazing people and the great with about 9,100 employees. In the same report,
culture we have here at Graybar Canada,” said Gales listed WESTCO’s 2017 annual revenue as
Thomas about his retirement. “The effort our $7.7 billion USD. [4]
people put in everyday to meet our vision of
Graybar Canada Today
being the best partner to our customers and
suppliers makes me proud and honoured to have In March 2019 just prior to Covid 19, Jason Taylor
been able to lead here. [3]” assumed the lead of Graybar Canada in the role
of Executive Vice President and General
Industry Overview
Manager. Since then, the executive leadership
This industry comprises establishments engaged team has grown, and new players have assumed
in the merchant wholesale distribution of new roles. In addition to Brian Thomas’
electrical construction materials; wiring supplies; retirement and Jason Taylor’s promotion to the
electric light fixtures; light bulbs; and/or top position, in 2019 Corey Morris was
electrical power equipment for the generation, appointed from within Graybar to lead the
transmission, distribution, or control of electric Atlantic Region (backfilling Jason), Jason Brimner
energy. Sources of differentiation for Graybar was recruited from outside Graybar as
Canada, include offering solutions for Controller, and in 2021 Kevin Connolly was
communications, data, automation, and security recruited from outside Graybar to the role of
applications. Marketing Director.

In addition to buying, selling, and shipping Graybar structure follows a matrixed model.
products between producers and contractors, Geographic regions provide direct sales and
wholesalers might also provide value added service to customers. The regional dimension is
services such as technical consulting services, job where client relationships are managed and
site services, arranging to have products where revenue is reported. Atlantic Canada was
customized or repaired, arranging special historically the largest region by revenue but is
financing plans, or providing overnight delivery now similar in size to Central Canada which has
services for specialty items. Many wholesalers experienced significant growth. Western
also incorporate a shifting price scale that favors Canada is the smallest region and is positioned
customers who purchase the most [4]. for growth with the introduction in 2021 of a
new Regional Director. Integration of a recent
The wholesale market for electrical supplies is
strategic acquisition began in 2021. Electro Mag
divided into industrial, commercial, and
is a regional automation distributor in the
residential customers. Wholesalers deliver
province of Québec and strengthens Graybar’s
industrial electrical equipment and value-added
footprint in Canada.
services to organizations involved in
infrastructure work. In 2020 the sector The regions are supported with cross regional
experienced mild declines based on economic functional coordination and direction from
pressure but has grown significantly as Covid national leaders in roles such as sales, marketing,
spurred housing and construction projects in accounting, information technology, inventory,
2021. and operations. In 2021 the growing national
focus on innovation resulted in a new central
In 2017 Gale Business Insights Global reported
role – Innovation Project Manager.
on “industry leaders” by first describing Graybar
as employee owned with about 8,500 employees
and then WESTCO International Inc. (Pittsburg)
Graybar Canada Case Jules Fauteux, PhD Page 2 of 5

This case is for teaching and learning classroom use. While many elements of the case are real some are fictitious.
Another new structural change was the In 2022, the Graybar Canada leadership team
establishment of The Graybar Canada Innovation comprised twelve individuals, including three
Council. A group of 60 representatives were women. Graybar Inc. (USA) was a woman led
appointed to this group intended to offer Fortune 500 company in 2022 with Kathleen
feedback and support to the portfolio of changes Mazzarella as Chief Executive Officer. Jason has
underway at Graybar Canada. The group a reporting relationship to the Graybar Canada
represents a cross section of Graybar – a Board of Directors and to Kathy.
diagonal slice. Long term employees and newer
ones, from diverse functions and regions make
up this new emerging team. The group met on a
few occasions in 2021 and began gaining focus
and momentum.

Graybar Canada Executive Leadership Team

Figure: Graybar Canada Executive Leadership Team 2022

Graybar Canada Case Jules Fauteux, PhD Page 3 of 5

This case is for teaching and learning classroom use. While many elements of the case are real some are fictitious.
Graybar Values Infor Cloud Suite® will allow Graybar to have a
more integrated view of its business including
When asked to describe Graybar Canada values
more consistent reporting. Currently the in-
its employees use words like: customer; service;
house ERP system has many reports which have
knowledge; flexible; solutions; entrepreneur;
been customized over the years. Reports will
innovative; respect; employee-owned; and
now be offered through a self-serve portal. The
neighborly. Community support through many
system graphical user interface and navigation
Graybar food and housing security related
will also be improved based on the newer
projects are points of employee pride.
technology. As Ryan Cruickshank, Innovation
Digital Transformation Project Manager said about Infor, “Its going to
look very different but the fundamental function
In 2019 Graybar began an initiative to develop an of the system will be more or less the same.
e-commerce platform where customers can Reporting will be different mind you. Some of the
engage with Graybar directly including ordering custom reports of old will need to be replaced.”
products online. The system changed many
processes internally at Graybar as well as for Graybar Roles
external vendor partners. Not long after,
Graybar Canada’s more than 650 employees all
Graybar introduced Salesforce® as a new
have the ability to buy shares in the company.
Customer Relationship Management (CRM)
Roberta Hood, Director of Human Resources
platform.
explains, “We are proud to be a privately-owned
With over 200 users in 2022, most Graybar company and we are delighted when our
employees who interface directly with clients employees become owners.” The job titles of the
use Salesforce® as a planning and management many employees at Graybar would be
tool. All Graybar revenue forecasts are based on challenging to list. Following is an illustrative list
data in the new Salesforce® customer of the digital transformation user types:
relationship management system. When a sales Senior/Regional/ National Sales and Product
manager discusses a customer opportunity with Leaders; Branch Managers; Account Managers;
a sales representative at Graybar, they reference Inside Sales Representatives; Counter
Salesforce®. Graybar Vice President of Sales and Representatives; Pricing and Contract
Marketing Peter Horncastle often says, “If it’s not Representatives; Branch Project Management
in Salesforce it doesn’t exist.” Representatives; Branch Operations and
Administrative Staff; Warehouse Supervisors
In 2021 Graybar reached an agreement to and Staff; Inventory and Purchasing
upgrade their Enterprise Resource Planning Representatives; Corporate Accounting and
(ERP) software with an industry leading vendor - Finance Staff; Corporate Accounts Payable Staff;
Infor. The new cloud-based solution was Corporate Accounts Receivable Staff; and
embraced to provide a more solid foundation for System Managers/ Administrators. These are
Graybar growth. The current ERP system is the roles of the Graybar Canada team members
outdated, and technical support is limited. The who will innovate, grow, and (need to) change.
new Infor Cloud Suite® is state-of-the-art
technology based on industry best practices.
[1] Graybar Canada, "About Us," 28 February 2022. [Online]. Available: https://www.graybarcanada.com/about-us. [Accessed 28 February 2022].
[2] Graybar Inc. (USA), "About Us," 28 February 2022. [Online]. Available: https://www.graybar.com/about-us. [Accessed 28 February 2022].
[3] Graybar Canada, "News: Graybar Canada appoints Jason Taylor," [Online]. Available: https://www.graybarcanada.com/News/Graybar-Canada-New-Executive-VP-and-General-
Manager_Press-Release.pdf. [Accessed 28 February 2022].
[4] Business Insights: Global, "Electrical Apparatus and Equipment, Wiring Supplies, and Related Merchant Wholesalers," Gale a Cengage Company, 2021.

Graybar Canada Case Jules Fauteux, PhD Page 4 of 5

This case is for teaching and learning classroom use. While many elements of the case are real some are fictitious.
Questions for Discussion

Describe the changes underway at Graybar Canada? Would you say a lot is changing? What roles do you
think might be impacted by the changes? Imagine the roles and the impact of the changes you identify.
Would you say the impact of those changes is significant? Why?

Discuss change management and how Graybar might apply change management at this time. What
change management strategies could be used to enable more and faster adoption of the innovation
agenda and related changes at Graybar?

Consider one particular role at Graybar. Use your imagination. Describe how that individual’s role might
be different based on the changes you identified above. Specifically, what might have changed in the work
environment (new boss, new system, etc.). Based on the differences you imagine (old role versus new role)
what could Graybar do to help the employee adopt the change more and more quickly? What change
management tactics could be used?

Graybar Canada Case Jules Fauteux, PhD Page 5 of 5

This case is for teaching and learning classroom use. While many elements of the case are real some are fictitious.

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