Ingrams September 2023

Ingrams.com | September 2023

THE MOST POWERFUL BUSINESS LEADERS IN GREATER KC

SPECIAL EDITION | TWENTY DOLLARS

PROVIDERS OF THE FINEST AUTOMOBILES IN KANSAS CITY

9415 West 65th Street | Merriam, Kansas | 913.677.3300 | aristocratmotors.com

PRE-OWNED SALES LEE’S SUMMIT

704 SE Oldham Court | Lee’s Summit, Missouri 913.677.3300 | aristocratmotorsls.com

13851 Madison Avenue | Kansas City, Missouri 816.943.7000 | mbofkc.com

SERVING OUR CUSTOMERS AND OUR COMMUNITY FOR OVER 6O YEARS

SEPTEMBER 2023 • VOLUME 49, NO. 9

Perspectives 4 Editor’s Note

The collective wisdom of this year’s Ingram’s 250 inspires a call to action from Kansas City’s leadership. by Joe Sweeney Service, as we’ve come to know it, is holding up for now, but the Age of Tech may yet impose unseen costs for all of this convenience. by Jack Cashill As if business owners didn’t have enough to keep them up at night, rapid advances in artificial intelligence are outstripping legal and legislative guardrails that could limit the actions of bad players. by Dennis Boone Multiple factors are on the minds of members of the Fed, complicating their task of walking a fine line between an inflationary economy and a high interest business climate. by Ken Herman

9 Between the Lines

21

14

11 Reflections

Features

12 In a Nutshell

Special Reports 21 The Ingram’s 250

7 Driven to Excel

Honorees from Ingram’s 40 Under Forty program get behind the wheel for a unique Porsche Driving Experience Event. By Will Crow Mike Heitmann With retirement on the horizon, the chief executive of Garney Construction wades into the details of crafting a succession plan for an employee- owned company with more than $1.5 billion in annual revenues.

The leaders of Kansas City’s most influential companies reflect on The Next Big Thing, prospects for an economic downturn in the com ing year (and how they’re preparing for it), share personal experiences with mentors who inspired them, talk about qualities they seek first in leadership hires—and even ponder the question of what type of charity they might start if they had a chance.

14 Q&A with …

16 Inflection Pointers

Half a century ago, Kansas City rose to a rare challenge to remake some major infrastructure and reposition itself on the national stage. Times have changed,

but business leaders in the metro- politan area believe new opportun- ities are emerging almost every- where, and must be seized. 21 The 2023 Ingram’s 250

Retirement continues to levy its toll on business leadership in the Kansas City region, as this year’s updated Ingram’s 250 demonstrates. But make no mistake, the pipeline of power leaders is strong and bears great might. Wecome the eighth class of Ingram’s 250 and the region’s most powerful exercutives.

2

I ngr am ’ s

September 2023

Ingrams.com

EDITOR’S NOTE

by Joe Sweeney

The Ingram’s 250 and Recommendations from the Corner Office

Time for this city—and its leaders—to be bold. It’s not a popularity contest when our editorial board convenes to deliberate over which executives should be included in the Ingram’s 250 in a given year. The change has been profound among the top leadership, and the changing of the guard feels as though it’s happening much faster than most of us expected. Since the inception of the Ingram’s 250 in 2016, our team has believed that it was essential to keep an accurate roster not only of the region’s top leaders but who among them yield the greatest power. We’ve been discussing the Baby Boomer mass exodus for years, and the pace is quickening. Some folks aren’t built for retirement and will continue working. Others step away and immediately divest from the grind. I’ve always wondered how executives with massive responsi bilities go from 100 to zero. More so, I’m baffled how some say they’re busier than ever once retired. I call B.S. on that line every time. You’ll see a number of new faces in this year’s Ingram’s 250. Our goal from inception is to keep the classes fresh with the most viable hands-on top leaders who yield the most influence and power. As we do each year we’ll convene many honorees for a reception and it’s quite an assembly of the power players, many of whom are engaged civically. Surprisingly, many honorees mention they don’t personally know more of the other honorees. Civic engagement, albeit noble, is not a requisite for inclusion. The primary barometer we view is the clout of the organization’s executives and the weight they throw to benefit their firms, industries, communities and often times their personal interests. A formula we’ve used for years is Position (P) x Influence (I) = Throw weight. This is an earned designation and seats are prized, few and never endowed. I’d be blowing smoke if I told you this was an easy project to conduct and to keep fresh. In fact, I’ll invite anyone to do their own research and craft a list as we have of the 250 most powerful players in the region. I would love to read and study your recommendations. Difficult as this project is to produce, it keeps our journalists on their feet and well informed of the players here and now. Change is not only inevitable, but often necessary. If you’re not moving forward, you’re falling behind. You’ll glean this message from many among the Ingram’s 250. Here lies wisdom from around the greater Kansas City region you can’t find anywhere else. It is with pleasure to serve as the steward of the Ingram’s 250 recognition program and to deliver this edition once again. This Year’s i250: What We Learned The KCI Terminal is a Big Hit. We didn’t publish every response, due to space constraints, but there is near-unanimous praise for a terrific outcome with the new KCI. Congratulations to every member, firm and coalition who collaborated to design and build arguably the best airport in the nation. This achievement, like the bi-state tax of 1996 to fund the massive renovation of Union Station, is a sign of the Kansas City Spirit at work, aligning to achieve exceptional outcomes. Build the Downtown Ballpark. Each of this year’s class of Ingram’s 250 was asked what KC’s Next Big Thing should be. The greatest majority believe that a new Downtown baseball stadium and home for

the Royals is in order; and many like the idea of an adjacent entertainment district or village. Several mentioned, and I’ll add, that the Royals should put as much energy into building a winning franchise as they have put into acquiring financial incentives and approval for a Downtown stadium. Perhaps performance stipulations should be tied to funding. It’s just good business. It’s way beyond time for the Kansas City Royals to be back in the American League pennant race. Let’s build the dynasty before the palace. Prepare for the World Cup. We have 2-1/2 years to prepare for hundreds of thousands of visitors, and millions of eyes from around the world, to see KC host the 2026 FIFA World Cup games. We’re aware there are preparations ongoing. I’ll echo sentiments of some i250 respondents that much is yet to be done in preparation for KC’s biggest stage. Many believe, and I want to amplify, the significant need to enhance regional transportation. I’m an advocate of the expanded light rail system to south of the Plaza, but it makes more sense to me to add an east-west route connecting the Sports Complex to Children’s Mercy Park and the Village West entertainment district in western Wyandotte County. That would move fans, visitors and our work force for the long haul. There is also a significant need to connect with the north/south line and the riverfront matrix northward to the airport. If KC is to assert its place on a national stage, as we did in the 1970s as a convention city, we need state-of-the-art mass transit. We have a good start—now we have a deadline. I’ve outlined an ambitious plan that could not be entirely completed in this timeframe, but like the ballpark, it could be started. What is leadership capable of accomplishing? If ever there was a time for this city and its leaders to be bold, it is at this time in our history. Ingram’s editors have reported from the 250 most powerful leaders, and I’d interpret this as a directive to focus on our future and do all we can before the summer of 2026, including the start of the Downtown baseball stadium and entertainment district and the light rail route connecting the stadiums.

Joe Sweeney Editor-In-Chief and Publisher E | JSweeney @ Ingrams.com

4

I ng r am ’ s

September 2023

Ingrams.com

1414 Genessee Street, KCMO 64102 . 816.842.7023 . www.markone.com

Isn’t it Time to Empower Your Team With Their Own Subscription to Ingram’s?

Editor-in-Chief & Publisher Joe Sweeney | JSweeney @ Ingrams.com Editorial Director Dennis Boone | DBoone @ Ingrams.com Senior Editor Jack Cashill | Editorial @ Ingrams.com Columnist Ken Herman Director of Sales Michelle Sweeney | MSweeney @ Ingrams.com Art Director Traci Faulk | Production @ Ingrams.com Contributing Editor Jim Moore | Editorial @ Ingrams.com Copy Editor Nancie Boland | Editorial @ Ingrams.com Digital Editor Will Crow | WCrow @ Ingrams.com Researcher John Ward | JWard @ Ingrams.com

Must-Read Monthly Issues

SUPPLY CHAIN UPDATE | KC COMMERCIAL REAL ESTATE TRENDS | BEST COMPANIES TO WORK FOR

Ingrams.com | September 2022

Ingrams.com | May 2023

THE MOST POWERFUL BUSINESS LEADERS IN GREATER KC

TOP PRIVATE SECTOR COMPANIES

$5.00

SPECIAL EDITION | TWENTY DOLLARS

2023.05 May cover.indd 1

5/22/23 5:25 PM

2022.09 Cover.indd 1

9/11/22 12:18 PM

THE NEXUS OF NORTH AMERICAN TRADE & LOGISTICS | CENTER FOR LIFE, PLANT & HEALTH SCIENCES

POWER BOOK FEATURING INGRAM’S AWARD WINNERS THE

MISSOURI’S BUSINESS MAGAZINE

Advertising @ Ingrams.com Digital @ Ingrams.com Editorial @ Ingrams.com Production @ Ingrams.com Research @ Ingrams.com Subscriptions @ Ingrams.com

Ingrams.com | August 2022

Destination Missouri Your Guide to Investing in Missouri

Marquee Sponsor

THE GREATER KANSAS CITY 2022 EDITION BOOK OF

LEADS & LISTS

Ingrams.com A Supplement to Ingram’s 816.842.9994 n w ww.Ingrams.com

$5.00

52

I ngr am ’ s

August 2017

2022.08 Cover-NEW.indd 11

8/15/22 11:26 AM

2022 Cover.indd 52

12/15/21 2:36 PM

SHOW-ME PUBLISHING, INC.

President Joe Sweeney | JSweeney @ Ingrams.com Senior Vice President Michelle H. Sweeney | MSweeney @ Ingrams.com

Value-Added Special Editions

Subscribe Today and Receive All Monthly Issues + THE POWER BOOK AND Destination Missouri for $44.95 — 45% OFF the News Stand Rate YES! I WANT TO SUBSCRIBE TO INGRAM’S !

2049 Wyandotte Kansas City, Missouri 64108 816.842.9994 Fax: 816.474.1111

1 Year for $44.95

2 Years for $69.95

3 Years for $99.95

5 Subscriptions for $150

10 Subscriptions for $275 20 Subscriptions for $500

Ingrams.com MISSOURI’S AND KANSAS’ DIGITAL BUSINESS MEDIA The entire contents of this publication are copyrighted © 2023 by Show-Me Publishing, Inc. with all rights reserved. Reproduction or use in any manner of editorial or graphic content without permission is prohibited. The magazine assumes no responsibility for unsolicited manuscripts. Ingram’s reserves the right of unrestricted editing of articles. Submissions must be in writing to be considered. Ingram’s (ISSN #1046 9958) is published monthly by Show-Me Publishing, Inc. at 2049 Wyandotte, Kansas City, Missouri, 64108. Price: $44.95 for one-year, $69.95 for 2 years and $99.95 for 3 years. Back issues are $5 each. Periodical postage paid at Kansas City, Missouri, and additional mailing offices. POSTMASTER: Please email address changes to JRyan @ Ingrams.com, fax to 816.474.1111 or mail changes to Ingram’s Magazine at 2049 Wyandotte Kansas City, Missouri, 64108.

Much of what your team needs to succeed in business is delivered each month in Ingram’s Missouri’s and Kansas’ leading business publication since 1974 Subscriptions@Ingrams.com ■ 816.842.9994

6

I ng r am ’ s

September 2023

Ingrams.com

HIGHLIGHT | INGRAM’S 2022-2023 40 UNDER FORTY / PORSCHE DRIVING EXPERIENCE

Driven to Excel Ingram’s in collaboration with Porsche and Aristocrat Motors decid ed it was time to get behind the wheel yet again and show our latest 40 Under Forty honorees how it feels to put the pedal to the metal, Porsche-style of course. Honorees from both the 2022 and 2023 classes gathered earlier this month for a special event, with Porsche driving instructors Keith McIntosh and Joe Rothman teaching them what exactly gives a Porsche its high pedigree as a sports vehicle.

Before long, these honorees became comfortable with the six vehicles showcased at the event, and what started as a simple cruise turned into quite the joyride for all. Whether it be Carol Krstulic from Blue Cross and Blue Shield of Kansas City revving up her engine for the first time or Seth Arnold from Honeywell zipping through the course in a 911 Turbo— one thing is for sure: Everyone left with a greater appreciation of the need for speed.

Coming in January:

th Anniversary Special Edition

A special commemorative issue that will look back on how Kansas City’s business infrastructure has evolved since the first publication of Corporate Report (forerunner of Ingram’s), was published in 1974. We’ll cover the people and companies that built this region over the years, take note of the biggest stories in our publication’s history, and look ahead to what the next half century might bring.

Claim Your Position: 816.842.9994 • JSweeney@Ingrams.com

Expect More from your logistics provider. Expect More from Scarbrough.

For nearly 40 years, The Scarbrough Group has grown its global logistics operation one client and one employee at a time. We are more than a logistics provider - we are your partner. Whether across the street or across the globe, we have the in-house expertise to provide you a local presence worldwide. We help you manage your supply chain differently. INTERNATIONAL FREIGHT FORWARDING & CUSTOMS BROKERAGE WAREHOUSING DOMESTIC TRUCKING NORTH AMERICAN TRUCK BROKERAGE SUPPLY CHAIN & GLOBAL SERVICES CONSULTING

Visit us at ingrams-250.thescarbroughgroup.com/contact/

The Scarbrough Group is proud to celebrate Adam Hill, President & Chief Executive Officer, as one of Ingram’s 250: Kansas City’s Most Influential Business Leaders.

© The Scarbrough Group, 2023

BETWEEN THE LINES

Pointed Perspectives & Penetrating Punditry | by Jack Cashill

Service Is Better Than Ever … For Now

The Age of Tech may yet impose unseen costs for all of this convenience. Having driven across the eastern half of the country four times this summer, I am pleased to report that, despite all the caterwauling to the contrary, the American service economy has never worked better. That said, unless we are vigilant, this golden age of convenience could quickly flip into an Orwellian age of submission. I must add one major caveat about my trips: I have pione-ered a route that can take me from Kansas City to the Atlantic Ocean without driving a single mile on either I-70 or I-80. The America I experience does not have a St. Louis, an Indianapolis, or a Columbus, let alone a Chicago. Cashill’s Razor: the farther you are from the center of the city, the better the service.

My mother was convinced that the Seminole would rob and kill my father and feed his remains to the alligators. Happily, that was not part of the fellow’s game plan. About two hours later, my father came back via another hitch with fan belt in hand, and we were soon on our way. This stage of our national evolution may not last forever, but we still have some choice as to how we live our lives. To that end, I choose as a destination on each trip, east or west, Hannibal, Mo., a town lost in time, a town where gas seems happily to be stuck at 2019 prices and mask mandates never made an appearance. I eat at a joint appropriately named “Becky Thatcher

I am happy to leave the cities behind. On my most recent trip out, barely across the Kit Bond Bridge on I-35, a tractor trailer ran me off the road and broke my side-view mirror. I chased the driver down and got him to pull over. In this the age of convenience, smart phone in hand, I took photos of his truck, his license plate, and the broken mirror with the mug standing sheepishly next to it.

Unless we are vigilant, this golden age of conve nience could quickly flip into an Orwellian age of submission. Those who whine about the decline in our service economy have obviously never passed any time at a Love’s Travel Stop & Country Store.

Diner”—a name, alas, that has zero meaning to the cosseted “safe space” crowd, a collective that includes just about everyone under 50. Here, the waitresses (not servers) call you “darling,”eand they don’t list calories on the

Using that same phone, I found the number for his company and called his boss. The boss proved to be an uncooperative jerk, but it only took me minutes to find that out. No longer needing to play nice, I sent the photos to the Highway Patrol and filed a report, again all within minutes. With every call, I surrendered some little of bit anonymity. I get that, but sometimes, it’s worth it. At Cameron, I turn east on Missouri Highway 36. I’ve sung its praises before for the simple fact that driving on it is as effortless as riding a people mover at the new KCI— with the added advantage that the highway is never “shut down for service.” A cell phone and an AAA card, of course, take a whole lot of the stress out of driving. As a 12-year-old, I remember the car breaking down on a family trip across the Tamiami Trail, then a lonely, two-lane road through the Florida Everglades. People had to be more resourceful then. So my father opened the hood—I’m not even sure I know where the latch is on mine—diagnosed the problem and started hitching a ride back to the nearest town. In time, a Seminole Indian pulled over in an ancient pick-up and offered my father a ride.

menu. Nor do they take your credit card with hand-held gizmos that sug gest a (high) range of tipping. Doesn’t matter. I always pay in cash. What the diner does have is wifi. Since I read at lunch, this does matter. It still impresses me that my tablet remembers the password from my last trip and connects me unaided to the Becky Thatcher router. I know. Big Brother could be watching, but, you know. Those who whine about the dec line in our service economy have obviously never passed any time at a Love’s Travel Stop & Country Store.

Jack Cashill Ingram’s Senior Editor P | 816.842.9994 E | Editorial @ Ingrams.com

9

I ngr am ’ s

Kansas City’s Business Media

September 2023

BETWEEN THE LINES

Headquartered in Oklahoma City, Love’s now has 510 locations in 41 states. If they let you, you could live in a Love’s. Literally. They have showers, washers and dryers, every brand of beef jerky known to man, and the cleanest rest rooms since the invention of trucks. Heading east or west, I stop in the same Indiana town and stay at the same $75 a night motel. For 75 bucks, I get a queen-size bed, free wifi, a walk-in shower, and quiet air conditioning. In the aforementioned trip to Florida, we sought out motels with AC. As late as the 1960s, AC wasn’t the norm, even in the South. Motels that had it, bragged about it. The first time I stayed at this motel, I asked the desk guy what time breakfast began. He laughed, pointed to the McDonald’s across the street, and said, “Whatever time you get there.” McDonald’s embodies the techno-

logical conundrum that faces us all. They are introducing self-service kiosks

removal of the fountains. My guess is that they don’t want people hanging around their stores. Having watched my share of “Girl Fight at McDonald’s” videos, I cannot say I blame them. The kiosks are what worry me and fellow Luddites. It’s annoying that we kind of need a tutorial to operate one, but it’s just a little bit frightening that we absolutely need a credit card. For the sake of convenience, we have all made concessions to the surveillance state. But at this delicate moment in our nation’s history, we can still choose between the anonymity of cash and the self-reporting submission of credit. The question is: how long will this moment last?

For the sake of convenience, we have all made concessions to the surveillance state. But we can still choose between the anonymity of cash and the self reporting submission of credit.

at the same time they are removing self-service soda fountains. McDonald’s tiptoes around the real reason for the

The views expressed in this column, which is also published online in the Heartlander, are the writer’s own, and do not necessarily reflect those of Ingram’s Magazine. Jack Cashill , Senior Editor, Editorial @ Ingrams.com

EDZ Systems is a certified, minority-woman owned business, bringing together People, Processes, and Technologies to drive business growth for our clients.

IT Consulting

Intelligent RMS TM SaaS Application EDZ’s proprietary software application is designed to help legal firms and corporate legal departments, centralize and manage resources, compensa tion, matter, client, and financial data, providing an “at-a-glance” status dashboard to monitor and report on attorney, matter, and client profitability.

Talent Acquisition Management Our sta augmentation team is client-focused; committed to finding the most talented IT and business professionals with the right skill sets and experience levels to execute our clients’ projects and tasks e ciently and cost-e ectively.

Solutions We specialize in technology oriented solutions, such as Cyber Security, Digital Trans formation, Data Management, and Application Development , that combine the processes and functions of software, hardware, and telecommunications to deliver value to our clients.

6750 W. 93rd Street, Suite 140, Overland Park, KS 66212 (913) 291-2921 • edzsystems.com

10

I ngr am ’ s

September 2023

Ingrams.com

REFLECTIONS

by Dennis Boone

At the Intersection of Business and Life

Reaping the benefits, understand the threats. The Future Is Here with AI. Are You Ready for It? executives in mid-size companies—let alone small-business owners—have to fully comprehend the risks, even as they’re exploring ways to harness the positives? For now, it’s a good idea to understand

With the Age of AI upon us, one can find no shortage of Terminator-inspired memes on social-media platforms these days. Meh: I’m not convinced that machines will be rounding all of us up for slave camps or targeting the strays for termination any time soon. That’s not to say I’d be sleeping like a baby if I were a chief executive. A few days ago, I stumbled across a video of a fellow who was demonstrating the ability of an AI application to sync his lip movement as it translated his speech, in real time, from English into French and German. The execution was flawless. Tech advances, especially since the dawn of the Internet, have always been fraught with the risk that some rat fink low-life out there might attempt to wring a few bucks out of companies that aren’t paying attention. We’ve come a long way since the first Nigerian prince emails, with the tech evolving to produce authentic-looking in-house emails purportedly from CEOs, issuing urgent directives to their finance departments to disperse immediate payments to phantom vendors. The powerful combination of speech and video, though,

that the Wild West developments we’ve seen in AI this past year will be answering to a new sheriff in town once lawmakers get involved. But when? “Legislation is started in the EU, and conversations have started here in the states,” Yamada says. “But I do not know how legislators and their staff can understand all the issues that are being raised around data privacy and security and the need to manage AI in a responsible way. It’s a huge challenge, and in the interim, there will be battles in the courtroom that will decide where the initial lines get drawn.” The bottom line for executives, he said, is that there’s a new need to evaluate your organizational structures and begin training or hiring of those who are comfortable living a world of constant change and innovation. And shell out for redundant systems and personnel. “Businesses have got to get up to speed in with the implications here,” Yamada says. “We think it’s important for clients to have their own responsible AI frameworks and approaches. You have to make sure that any AI initiatives are transparent and explainable— especially the that are AI-forward or visible where customers are interacting with AI. “How to cover your blind spots,” he says, “is always an important aspect of business.” So take to heart the guidance that time traveler Kyle Reece offered to young Sarah Connor in that original Terminator flick. Just like Cyberdyne Systems Model 101, folks, AI is out there: “It can’t be bargained with. It can’t be reasoned with. It doesn’t feel pity or remorse or fear. And it absolutely will not stop ... ever.” Sleep well tonight, C-Suiters …

is truly frightening. AI might help with customer contacts, streamlining processes, or extracting deep insights from tranches of data. It also might create opportunities to hijack the image of a corporate executive and have him or her spout all manner of brand-damaging statements. You think this year’s damage to Bud Light and Target was a marker of where were brand risk is these days? You ain’t seen nothing yet. In each of those cases, stupidity, carelessness, detachment from your consumer base and a laissez-faire attitude from the C-suite were, in effect, one-offs. With AI, we’re talking structural risk on a global scale.

Since the dawn of the Internet, tech advances have always been fraught with the risk that some low-life might attempt to wring a few bucks out of companies that aren’t paying attention.

Brian Yamada, chief innovation officer for VMLY&R, the region’s biggest digital branding/ad agency, gets to ponder some of those risks, and the rewards, for clients every day. “These conversations are happening in boardrooms right now: How do we get our arms around AI and where do we apply it?” he says. “We’re seeing lots of different applications across the spectrum.” That includes the dark end of the spectrum. “The threats are many,” Yamada says. “It’s a complex area. So, number one, keep your lawyers close. The landscape is shifting so quickly, I jokingly say that I’m drinking from the AI firehose and trying not to drown. It’s my job to try to keep up with this.” Ponder that for a second: The chief innovation officer for a global marketing agency is challenged every day to keep up with developments in AI. Given that, what hope do C-suite

Dennis Boone is the edito rial director at Ingram’s. E | DBoone @ Ingrams.com P | 816.268.6402

11

I ngr am ’ s

Kansas City’s Business Media

September 2023

IN A NUTSHELL

by Ken Herman

Clouds Move in From Multiple Fronts

With disappointing news arriving, how will the Fed respond after a long run-up in interest rates? The Fed’s decision to leave rates unchanged earlier this month was accompanied by hawkish communication sig naling a propensity to hike at least one more time this cycle. Treasury yields rose across the curve throughout the afternoon, but it is still too early to determine whether the capital markets believe what the Fed is selling. There is still one more hike implied by the 2023 forecast, but the way

a year, driven by a nearly 11 percent increase in retail gasoline prices. A weakened Chinese economy was also thought to reduce global oil demand, but supply appears to be the bigger problem, with oil and gas companies quick to point out regulatory restric

Chairman Jerome Powell talked about rates—less about “future increases” and more about forecasting humility— suggests the committee is open to the idea of ending hikes this year. The Fed seems to have added enough pressure on financial conditions with out fallout for growth and employment, at least when compared to previous U.S. inflation battles. That has led the market to price in an economic soft landing, helping prop up stocks for much of the year, contrary to many of the initial forecasts on Wall Street. The key question now is whether that can keep going. Have the 525 basis points in interest-rate hikes delivered since March 2022 already filtered thro-

tions on their sector. While rel eases from the Strategic Petrol eum Reserve were commonplace in 2022, when Russia began its invasion of Ukraine, those drawdowns have brought SPR sup- plies to their lowest level in 40 years. If WTI crude would top $100 per barrel, the Biden admin-

The Fed seems to have added enough pressure on financial conditions without fallout for growth and employment, at least when compared

to previous U.S. inflation battles.

ugh the economy? Will things hold up if those levels are held through 2024? What about other possible curveballs like higher energy costs, student loan repayments, damag- ing labor strikes or a government shutdown? The Energy Factor Oil prices have crossed $93 per barrel for the first time since November 2022, sending ripples through many parts of the economy. There are a variety of reasons for the upward climb, most notably the recent production cuts by Saudi Arabia and Russia. However, the pace at which oil is ascending is becoming a bigger topic of discussion. After remaining below $80 per barrel for most of the year, West Texas Intermediate crude broke above that level this summer—and has soared more than 17 percent over the past several weeks, helping to raise costs on everything from transportation to manufacturing. Resurgent energy prices are a particular headache for the White House, which was celebrating some minor wins on the inflation front. Then came word that U.S. con- sumer prices in August rose by their most in more than

istration would likely consider ad- ditional releases, but until then, there are some other options under consideration. Regular discussions are taking place with domestic producers and refiners, as well as international options such as easing restrictions on exports from Iran or Venezuela. If, as Wall Street expects, there is still one more rate hike in 2023, it will indicate the Fed is leaning toward a November hike. A hike at the November meeting would main tain the current tightening pace of a quarter-point increase at every other meeting, and it could leave room for one more hike before year-end if the data starts flashing red hot. Not that anyone expects it will … but the Fed always likes to be ready to go.

Ken Herman served as the Managing Director of Bank of America Global Capital Markets and was the Mayor of and served on the City Council in

Glendora, Calif. E | Editorial@

Ingrams.com

12

I ngr am ’ s

September 2023

Ingrams.com

Join us at Our Premier Benefit Event Featuring Emcee Kevin Holmes of KSHB-TV 41 Honorary Co-Chairs Carol Marinovich and Jim Carr Saturday, Nov. 4, 2024 • 6:00 pm At Children’s Mercy Park Celebrate the good work of the Police Athletic Leagues on Nov. 4! Join us at our signature event to benefit the Police Athletic

Leagues of KCK and KCMO. Emcee Kevin Holmes of KSHB-TV 41 joins honorary co-chairs Carol Marinovich and Jim Carr to celebrate the important work of the PAL. At the event, you’ll join our area’s top civic, municipal and business leaders, along with law enforcement officials, who share your commitment to positive youth development and safety in our community.

Tickets include drinks, dinner, auction and entertainment. Proceeds will benefit the important programs of the KCMO and KCK Police Athletic Leagues, where officers and other adult mentors develop positive relationships with at-risk kids in programs like Drivers’ Ed, fitness, art, sports, gardening and academic tutoring.

Event Sponsorships include exclusive TV and print media opportunities and extensive brand recognition before, during and after event, plus VIP seating.

Visit PALGalaKC.org for sponsorships & table reservations.

Collaborative Fundraising to Support the Children of Our Community

Advertising support courtesy of Ingram’s and KSHB-TV

Thought Leader Insights: Succession Planning

Q&A ... W ith M ike H eitmann

The retiring CEO of Garney Construction walks through the process of succession planning that had led to new leadership of the $1.5 billion water-infrastructure company.

Q: Now that your retirement has been announced, can you take us back thro- ugh the process that led to it, and the drafting of the original succession plan? A: Succession planning is a continuous process, so we are always working on it as it applies to all levels of the organization. Parallel to our succession-planning process is our leadership development program, which essentially prepares our people to lead teams and organizations. Our goal is to have a bench of leaders capable of stepping up when needed. Q: But there is one seat on that bench that differs a bit from the others with the CEO. A: Specifically regarding my position, we began looking at who on our bench would be a good fit for the CEO role about three years ago. Several people were identified and targeted with additional leadership development work. It was about 18 months ago that David (Burkhart) was identified as the next CEO. He moved to Kansas City last summer, and we have been transitioning my role since that time. The hand-off is essentially complete, and he will assume the CEO role on October 1. Q: Tell us about the decision to oper ate on a three-year time frame. Why was that key? A: We wanted to have a solid 18 months of overlap and be able to ramp the transition from zero percent to 100 percent over 12 months, then have a six-month period where ethe new CEO has the reins 100 percent. The three-year process gave us 18 months to evaluate the bench of executive leaders, look at their strengths and determine who would be the best person to be CEO. Q: But it doesn’t stop with that dec ision, does it? A: You don’t want to look at the CEO position solely. You need to look at the overall

Q: Was there anything specific to the Garney organization plan that required a different approach, as opposed to what we might call off-the-shelf succession planning guidance that could apply to any company? A: Nothing in particular other than being a 100 percent employee-owned company. Our level of communication with our employee-owners was higher than typical. Our people have a vested interest in knowing, and having confidence in, our leadership. A: We have weekly internal emails that go to the entire company, as well as quarterly shutdowns in he field where we stop work and meet with our field crews about what’s going on within our company. Our communication level is much greater because our employee owners’ retirement and financial security are dependent on this company being successful. They deserve to know. So we’re very transparent about when people are retiring. Several years ago, I began telling the company “I’m retiring in 2024,” so we started the process to identify the next team to lead this next chapter of Garney. We didn’t communicate the CEO shortlist, or anything like that, but we made it clear that we were going through the process, developing our leaders, working through succession and as soon as a decision was made, we made sure it was communicated. Q: And what form did that take? A: I t’s hard to get everybody together because we’re so spread out around the country, so we sent an email to the entire company announcing that David would be CEO and Matt (Reaves) and Matt (Foster) would be the new presidents. We did that internally, a good eight months before we did the news release a couple of weeks ago. Q: What specific tools help create that level of transparency?

executive leadership in terms of CEO, CFO, COO, president, and other key people who oversee significant operations. They all have different strengths. We wanted a team that’s very complementary to one another, whose strengths combined to provide effective leadership. So no, you don’t just look at one pers on, you’re looking at the whole team . A: There are always going to be adjustments based on the team strengths. In the current leadership team, there are things I’m good at that I handle currently, there are certain things our president is good at. In the new team, several things shifted: This is one better at this, this one is better at that, so let’s switch that up. We developed a very detailed list of roles and responsibilities, showing who did what and how that might look different in the next leadership team. Q: Does that mean tinkering with roles structures? Q: Was there a commitment for an internal hire from the get-go? A: There was a strong preference for that. We were very confident that we had internal candidates well-suited for the CEO role. It doesn’t mean that going outside is not an option, but that would have been a last resort. So we never had doubt. Q: So it’s important to be building your bench along the way, long before change at this level is going to happen? A: That’s why I say it’s continuous. When you’re planning succession, you don’t ever really develop a plan and be done with it. Succession planning is a process that is never-ending. Just like strategy and financial management, it’s continuously going on. It parallels leadership development, basically creating a deep bench of executive-ready leaders, and identifying their strengths. When the time comes to replace key positions, you have the bench ready to step into those roles.

14

I ngr am ’ s

September 2023

Ingrams.com

Q: How did your growth as a com pany play into the process? A: I became CEO in 2011, and we were a much smaller company then. Not that succession wasn’t important at that time, but when you are much smaller, the pieces are kind of clearer, and the needed expertise is less. Now, we’re a $1.5 billion company, we’ve got departments and aspects of the company that are crucial to our success that we didn’t have back then. That makes it much more crucial to have a better understanding of the process and impact. A: We are a hands-on, get-stuff-done company, so they helped us lift our heads up and look farther down the road to understand the importance of clarifying the vision for the company and then translating that down to actionable steps. The executive team shouldn’t be wading into the details, but letting their teams do that. Leadership needs to be focused on the longer-term vision and the overall purpose and culture of the company. A: It can be uncomfortable. I talked earlier about people’s strengths, but it’s not only about strengths—people do things differently, approach things differently, look at things differently. That can make you uncomfortable when you’ve done things a certain way for 12 years. You want to get in there and speak up, but I learned from the consultant the importance of stepping back, being a trusted advisor and letting the new team execute. I was very intentional and made a conscious decision to focus on that. I continue to provide input to the new leadership team, but ultimately, they are making the decisions. Q: Did anything with your experience leading up the announcement of this plan surprise you in terms of timing, complexity, internal politics or other issues? A: No surprises other than how quickly the new team was capable of taking the reins. You tell yourself that everything will fall apart Q: Did your consultant identify any blind spots in your planning? Q: Is that tough, personally, to let go with a decision so big on the line?

and lo-and-behold, the new team steps right in. It can be difficult to let go, but critical to making the process work. Q: If you had to go back to square one, would you have done anything differently? A: Not really—I think our process over the past three years has worked well. Some things can only be learned by being in the seat. You don’t know what you don’t know. This was certainly the case for me when I became CEO. Q: Outside of corporate ownership, who are the trusted advisers that must be part of the process, and what do they bring to the table? A: Our board of directors was heavily involved in the process and played an important role. They were integrally involved in the final decisions and helped shape our path forward. As mentioned previously, we utilized an outside consultant that was very helpful as well. Q: What about managing staff ex- pectations and the inevitable water cooler talks about how the pieces on the chessboard will shake out? A: Being employee-owned, we tried to be very transparent, and over communicate with our employee-owners. Q: Related to that, what’s your best guidance on managing difficult discussions for those who won’t be moving up? How do you ensure retention of that talent? A: The beauty of employee-ownership is that everyone on the team wants the company to be successful. This strengthens support and collaboration between leadership. Everyone wants everyone else to be success ful because it benefits them and everyone else. Our compensation structure encourages this. Those that may not have received the pro motion they were hoping for are minimally impacted from a financial standpoint, them and everyone else. Our compensation struc ture encourages this and those that may not have received the promotion they were hoping for are not really impacted from a financial standpoint.

Q: So was your overall plan fully in place heading into this process, or did it require fine-tuning before you started discussions with all the folks involved? A: We hired an external consultant about six years ago, to help us with both leadership development and succession planning. The process was continuously tuned, and always evolving and improving. Q: Did you learn anything from that consultation that impacted the trajectory of your planning? A: Yes, the consultant was invaluable. We’re a construction company; for the most part, all of us are people who focus on building things. We didn’t have the same level of educa tion or training in leadership development or succession planning, so it was important for us to hire somebody who did. It was a firm from Dallas, and again, they were invaluable in helping us with what the overall plan needed to be. “You don’t ever really develop a plan and be done with it. Succession planning is a process that is never-ending.” — Mike Heitmann, CEO, Garney Construction

15

I ngr am ’ s

Kansas City’s Business Media

September 2023

ARE WE AT A HISTORIC CROSSROADS AS A CITY? Top Executives Envision an Agenda For KC.

K ansas City has been here be fore. Half a century ago, this community was awash with change: A new international airport was taking shape on the outskirts of the city. The sports world stood in awe of a breakthrough stadium design with the Jackson County Sports Complex. A new arena in the West Bottoms would thrust us into the national conversation about a presidential election. Well, times change. The Royals are scouting Downtown locations for a new stadium, and Arrowhead is in line for a significant makeover. Kem- per Arena has been reduced to a community athletic center. The final remnants of that original KCI is being swept away with the completion of the single-terminal facility. It’s a perfect time, then, to sound out the region’s business community on how the civic agenda should be re vised. We did just that with this year’s Ingram’s 250 report, polling a power ful, influential, and affluent executive class on where the new lines should be drawn. Their observations—should— carry considerable clout with the pub lic-sector figures who will have to sign off on planning, zoning, and regulating the reshaping process. They will have much to consider. FIFA and Beyond By an overwhelming margin, re spondents identified two major emerg ing opportunities for the city—a Downtown stadium for the Royals and the 2026 FIFA World Cup. Curiously enough, not one of the 250 executives polled on the question of The Next Big Thing argued against the idea of building a new pro baseball stadium

Downtown. Given where the Royals are in their processes, it seems fait accompli that they won’t be playing at Kauffman Stadium a few years from now. So perhaps it’s not surprising that virtually every one of the executives who weighted in see that development as an opportunity to add a missing piece to Downtown’s appeal. Beyond that, last year’s announce ment that this would be one of three U.S. host cities for the global soccer tournament was a match that has ig nited an intense interest in showing the world what Kansas City has to of

United States built specifically for a pro fessional women’s soccer team AND the national headquarters of Women Lead ers in Sport being in KC, I think Kansas City should lay claim to being the lead ing U.S. city focused on supporting the growth of women’s sports,” she said. For the most part, though, the World Cup is seen as a lever to bigger and bet ter things. “We have great momentum—Su per Bowl, World Cup, NFL Draft, great stuff,” said Ramin Cherafat of Mc CownGordon Construction. “But we also need to develop and implement

“We have great momentum, but we also need to develop and implement long-term economic-growth strategies for our region by growing, attracting, and retaining great companies for the long term.”

— RAMIN CHERAFAT , CEO, MCCOWNGORDON CONSTRUCTION

fer, not just as a soccer capital, but as a place to do business, establish a career or raise a family. “Kansas City is at the forefront of so many things right now—business and industry, sports, culture,” says Doug Wolff of Security Benefit, who can ap preciate those opportunities from the vantage point of Topeka. “It’s great to have an airport we can be proud of as we garner national and global atten tion as a World Cup host site and fu ture home of the first women’s sports focused stadium for the Kansas City Current soccer team.” Anne St. Peter, co-founder of Global Prairie, sees the soccer connection as a differentiator. “With the KC Current and their first-ever soccer stadium in the

long-term economic-growth strategies for our region by growing, attracting, and retaining great companies for the long term.” Shook, Hardy & Bacon chair Mad eleine McDonough concurred. The region can advance, she said, by “attracting new major corporate headquarters to the region while fo cusing on early childhood education, affordable housing, and safer neigh borhoods, all of which will help attract new businesses to our community.” One way to do that, said St. Peter, would be “to continue to highlight our strength in the life sciences—from animal health to digital health to hu man health—KC has significant assets worth celebrating.”

16

I ngr am ’ s

September 2023

Ingrams.com

i250 ECONOMIC REPORT

At CommunityAmerica Credit Union, Lisa Ginter sees a convergence of opportunities. “The new airport, the NFL Draft, and now, the 2026 FIFA World Cup are all leading indicators that we have so many exciting oppor tunities ahead for Kansas City,” she said. “Focusing on improvements to our transportation infrastructure and reducing crime will be important for us to tackle if we want to maximize our full potential.” To her point on infrastructure im- provements, Damon Anderson of Tall grass Freight is prepared to issue a challenge. “Let’s dream big: Why not imagine the idea of light rail running parallel to 435 all around the metro?” he asked. “The benefits of light rail connecting both sides of the metro would transform the entire city.” Kathy Nelson, whose Greater Kansas City Sports Commission Foundation will play a key role in formulating the World Cup strategy, also chimed in with a two-word need: “Regional transportation.” Tammy Peterman at The University of Kansas Health Sys- tem, believes that “the work on ex panding the streetcar in a way that connects different parts of our city is important.” Precisely, said MMGY’s chief exec utive, Katie Briscoe. “Continuing to connect different parts of the city through mass transit” is huge, she said. “I’d love to see light rail transit from our new airport.”

“I think Kansas City should lay claim to being the leading U.S. city focused on supporting the growth of women’s sports,.”

— ANNE ST. PETER , CO-FOUNDER, GLOBAL PRAIRIE

at our transportation infrastructure.” But do it right, he says. “Due to the lack of planning, it changed the quality of life in high-growth cities like Austin and Nashville.” Bill George of WHC Worldwide stressed a health care/public safety theme. “We need a metro-wide re sponse to the lack of mental-health facilities and rising violent crime,” George said. “It makes no difference how many wonderful attractions we have unless people feel safe to venture outside and enjoy them.” Health care, naturally, is the lens through which Bob Page views oppor tunities at The University of Kansas Health System. “I will admit to being biased, but I believe the next big thing is to make Kansas City a national hub for medical research and advanced medical care,” he said. “The new can cer facility we are building with the Medical Center is one example of how that will happen.” That could be the linchpin in ele vating the region around the hospital, which abuts Midtown along State Line,

The journey to make Kansas City a destination for cancer care, said his Kansas City market president, Tammy Peterman, requires “supporting those at the bench and the bedside to work together to develop the next generations of cancer treatment.” UnitedHealthcare’s Rob Broomfield, by contrast to most, doesn’t think Kansas City needs a “next big thing.” He’d prefer to see a series of smaller wins being strung together into major victories. It’s all about priorities, he says, ones that benefit the region and its people. “Let’s focus on helping them all be more successful.” Greg Graves, who is keeping plenty busy with board service following his 2016 retirement from Burns & McDon nell, says the concept of identifying the region’s Next Big Thing is “a terrific question. The obvious answer for which I am a big supporter is a new stadium for the Royals, but let’s not make it that easy, either. My vote is the South Loop ‘lid’ project, an idea that goes back to Mayer Kay Barnes and City Manager Wayne Cauthen. One of my favorite ‘no bad ideas’ meetings ever!” In any event, said Jeff Spencer of Holmes Murphy & Associates, the time has arrived to “resolve the location of the Royals Stadium once and for all.” Mike Rainen, one of the city’s most prolific and astute property investors, issued a clarion call focused on what can easily be called the heart of Kansas City: “Locals should step up and redirect the vitality and safety of the Plaza,” he said. “It is a national, historic gem that has been managed by out-of-towners to their own detriment and recent loan default. Now, Kansas Citians need to return it to its old luster.” Recession Odds Poll 250 executives from diverse business sectors on where the economy

“Locals should step up and redirect the vitality and safety of the Plaza. ... Kansas Citians need to return it to its old luster.”

— MIKE RAINEN , PROPERTY OWNER/INVESTOR

into a destination medical facility “where research, education, and pat ient care come together to attract new business to the metro, national and international researchers who will create new medicine for some of the most challenging conditions and pat ients from around the world” for cut ting-edge care.

Commerce Bank president Rob Bratcher sees potential in the power of transit—with a caveat. “It’s a combination of tackling key areas that could hinder or halt the momentum attracting many new companies and major investments in our region,” he said. “One major area to focus on is the need to take a fresh look

17

I ngr am ’ s

Kansas City’s Business Media

September 2023