Discovery a Vision for Society

APRIL 2018 Discovery THE QUARTERLY NEWSLETTER OF KOCH COMPANIES

A vision for society

Earlier this year, at a gathering of “But sadly, not all people have gained communities or public policy, these people passionate about promoting a that freedom. Today, our society people and organizations are making free and open society, Charles Koch continues to be plagued by a rigged a real difference. “Their stories,” said shared a seven-minute video, “The system of cronyism, dependency and Koch, “prove that dedicated, courageous History of Freedom.” control. We have a two- individuals — uniting with shared tiered society that creates In his narration for that We’re here to principles and a common vision — can welfare for the wealthy video, Koch said, “For break barriers. break barriers. and crushes opportunity thousands of years, the “And when they do, free people will for the disadvantaged. human experience was – Charles Koch achieve extraordinary things.” full of misery, death, “The barriers this system If a network of freedom-loving people disease, abject poverty.” But then, as has created make it nearly impossible” “can create a ten-fold increase in scale a series of liberating events began, for many people “to learn, contribute and effectiveness, we can truly become human progress skyrocketed. and succeed. It’s the injustice of our a movement of millions that drives time, and it has to stop.” This “Great Enrichment,” Koch said, societal transformation. “has been a period of unprecedented THE SOLUTION “That’s what we’re here for,” Koch said. worldwide growth,” with the standard “To break barriers.” of living in the U.S. rising by almost One of Charles Koch’s solutions to that 10,000 percent in 200 years. injustice is to seek out and partner with To find out more about the Koch- supported organizations helping make “This shows what happens when at least 70 organizations working with all positive change a reality, read the barriers are removed. Ideas can flow walks of life in an effort to break down feature story beginning on page four. and people can have the freedom to barriers and create new opportunities. innovate, succeed and drive progress. Whether focused on education, business, bit.ly/2HZ79eo

Koch’s general counsel, Mark Holden (left), has visited the White House more than 20 times during the Trump and Obama administrations to help drive needed criminal justice reforms.

THIS ISSUE... 2 Role of a Supervisor goes global 4 Revitalizing troubled communities 7 Mary R. Koch and Mark Arts 8 Essential skills for a digital workplace Letters and other submissions become the property of Koch Industries, Inc., and may be reproduced in whole or in Postal Pipeline part, including the author’s name, for any purpose and in any manner. Letters may be edited for length or clarity.

You have probably already been made aware of the caption in January’s Discovery. The computer pictured was actually the first Apple 1, not a Macintosh. While it may seem like a minor distinction to some, it is a pretty significant one to us computer nerds!

Jason Karber Finance systems developer Koch Accounting Group Wichita, Kansas

Pyeongchang, South Korea — For the first time, Koch ran network television ads during coverage of the Winter Olympics. Koch’s ads were seen by adults an estimated 280 million I’m wondering who mails out Discovery times on TV and almost 11 million times digitally. newsletter? We need to change our quantity of hard copies. Could you point me in the right direction?

Charles Koch’s “History of Freedom” Deb Wiuff video was excellent and definitely Employee services coordinator inspiring! Pine Bend Refinery Rosemount, Minnesota Susan D. Landry Product stewardship and compliance manager Editor’s note: Contact Frac-Chem Corp. [email protected] (a Koch Minerals company) if you need to change your address or the Lafayette, Louisiana quantity of newsletters you receive.

Wow! What a powerful, inspirational and heart-warming I completely agree with message. As I was listening, I could feel an unwavering sense of Discovery pride, passion and utmost respect toward our great leader. this. To think that a April 2018 person or company ever reaches Charles is a phenomenal individual whose words truly Volume 24 | Number 2 the pinnacle of knowledge exemplify his intellect and passion for creating equality and free society. I’m so very proud to be an employee of our company! and efficiency is arrogant and DISCOVERY ONLINE foolish. My opinion is that a truly KOCHnews.com/media- Judy Tallada resources successful company calls on its HR manager people to question the norm and Georgia-Pacific tissue mill offer suggestions for improvement. Plattsburgh, New York EDITORIAL BOARD Susan Armitage – Chad Hammond bit.ly/2HZ79eo Philip Ellender Jeff Gentry Greg Guest Very wise words and totally agree! Jim Hannan It means being open to new ideas Amy Hennes Charles Koch from everywhere, both inside and Steve Lombardo outside of an organization. Walt Malone – Darcy Eid Brad Razook Dave Robertson Peter Ventimiglia Congratulations! Motivational words, Charles Koch is a great EMAIL US example to follow. Thank you for Photo courtesy of Guardian Glass LLC © Gonzalo Botet GRDPR149 [email protected] sharing your life story. Thanks! This house was custom-made for a site in the Gorafe desert of Spain. – Cristiano Miller It utilizes several types of Guardian glass to achieve the architect’s www.KOCHind.com goals of being environmentally friendly and energy efficient, despite © 2018 Koch Industries, Inc. being in one of the world’s harshest environments. Koch is an EOE. M/F/D/V.

2 International News

to import the first waterborne delivery of motor vehicle fuel by a private party since the Mexican petroleum industry was nationalized in 1938.

The delivery was received at a newly refurbished terminal in Veracruz owned and operated by Vopak, a Dutch company. Vopak was the first independent company to operate a private waterborne fuel storage terminal in Mexico.

For Eduardo Andrade of Koch Supply & Trading, that delivery was an historic moment.

“This was a very important first step toward bringing more affordable fuel to Mexico,” Andrade said.

“Our vision,” he explained, “is to lower energy costs for the citizens of Mexico by creating new supply routes for transportation fuels. If we succeed, they will have more and better options.”

To help achieve its vision, KMEX has signed a multi-year services agreement with Vopak.

KMEX plans on eventually importing up to 40,000 barrels of Veracruz, Mexico – For more than 75 years, only PEMEX, the state- product daily in Veracruz. owned oil company, could import motor vehicle fuel into Mexico. “I cannot over-emphasize how important energy reform is for It wasn’t until 2013, when wide-ranging energy reform legislation the people of Mexico,” Andrade concluded. began to be implemented, that things began to change. “It’s a classic example of MBM® in action. We are creating Last September, thanks to new laws that allow freer trade, Koch mutual benefit for everyone involved.” Supply & Trading of Mexico (better known as KMEX), was able

MBMの実践

Nov. 2017 Warsaw, Poland – Last year, the MBM team completed a major ANWENDEN VON MBM rewrite of the “Role of a Supervisor” document — an important 監督者の役割 Nov. 2017

tool for implementing and promoting Koch’s culture. ® लागू करना 文化の形成、チームの最適化、 DIE ROLLE EINES人材の育成 STOSOWANIE MBM That document is now in the process of being translated into SUPERVISORS Listopad 2017 Eine Kultur aufbauen, Optimierung全ての監督者の皆さんへ des more than a dozen languages — including Czech, Hindi, Thai and एक पर㔯वेक्षकTeams und Entwicklung der Mitarbeiter. 監督者として、皆さんには周りの人の能力向上や成功を助ける責任ROLA けることも欠かせません。今現在の社員がいかに能力が高く好成績があります。これはコークでは、社員がマーケット・ベースド・マを上げていても、現状維持に留まっていれば時代に遅れてしまいまネジメントを理解し実践できるように手助けをすることを意味します。 की भलमका す。チームの業績と、監督者が前記を達成する能力には、強い相関 ू ® MBM DISCOVERY ONLINE Portuguese — and has already been rolled out to scores of Koch 関係があります。皆さんには必死でMBM を学習し、使っていただPRZEŁOŻONEGO実践企業において、社員をビジョンと結びつけ、優先順かなければなりません。そうしなければ皆さんのダイレクトレポー位を設定し、チームを構築し、共有する価値の模範となり教授 दल को अनकल बनाकर और लोगⴂEINE का MITTEILUNG AN ALLE SUPERVISORS RR&E ु ू トから、上司も会社も偽善を言っていると思われてしまいます。し、を定義し、コーチングと能力開発を実施し、パフォーマ ववकास करके सं्कृ यत का यनमा㔯ण Tworzenie kultury,ンス評価を行い、報酬の提案を行うのは、監督者の仕事です。これ optymalizacja KOCHnews.com/media- MBMは皆さんの単なる責任ではありませんし、することが一つ増らすべての領域にMBMを適用するための能力の向上には、意識的 company locations around the world. Als Supervisor sind Sie dafür verantwortlich, den Menschen um Sie und Kenntnisse zu entwickeln.zespołu Egal iwie rozwijanie talentiert oder wiepracowników. gut die えたということでもありません。皆さんのすべての仕事において活に実践に集中する必要があります。皆さん自身のスーパーバイザー Mitarbeiter heute sind, sie werden nicht mehr zeitgemäß und überholt herum zu helfen, sich zu verbessern und erfolgreich用すべき１つの枠組みです。完璧な人は誰もいませんから、 zu sein. Bei Koch MBM や同僚、HRに支援を求め、学んだとおりに実践内容を調整してく heißt das, ihnen zu helfen, Market-Based Management® zu verstehen sein, wenn sie nur den Status quo beibehalten. の理解度を高め実践するには日々の努力が必要です。社員にも同様ださい。自身の最大の能力を実感でき、ビジネスのビジョンを進展 und anzuwenden. Es besteht eine starke Wechselbeziehung zwischen resources In einem MBM-Unternehmen sind die Supervisors dafür zuständig, den Ergebnissen eines Teams und der Fähigkeit desの努力を勧めてください。 Supervisors, できたとき、そして顧客や会社、社会にさらに優れた価値を創出で eine Verbindung zwischen Vision und Mitarbeiter zu schaffen, dies zu tun. Sie müssen danach streben, MBM® zu erlernen und きたとき、あなたとダイレクトレポートの達成感も高まることでし Prioritäten zu setzen, ein Team zu bilden, unsere gemeinsamen anzuwenden; andernfalls werden Ihre Mitarbeiter Sie長期的成功を遂げるには、全ての監督者にビジネスの変革が進むよ und die ょう。 सभी पर㔯वेक्षकⴂ के ल ए एक संदेश Werte zu formen und zu lehren, Rollen, Verantwortlichkeiten und Organisation als scheinheilig ansehen. うな環境作りをしていただく必要があります。私たちが提供するサ At Molex’s plant in Poland, MBM consultant Roman Ruska reports Erwartungen zu definieren, Training und Entwicklung durchzuführen, ービス、作る製品、そして私たちの仕事の進め方が、変化と改善を MBM ist nicht einfach eine Ihrer Verantwortlichkeiten oder etwas Leistungen zu bewertenINFORMACJA und Vergütungsempfehlungen DLA abzugeben. PRZEŁOŻONYCH एक पर㔯वेक्षक के 셂पᴂ म, आप अपने आसपास के लोगⴂ मᴂ सधारु करने और एक MBM कंपनी मᴂ, कम㔯可能にするのであり、そのようにして行かなければなりません。皆चारररⴂ को 饃र्रकोण से जोड़ना, प्रारलमकताओं को Weiteres, die Sie tun müssen. Es ist ein Rahmen, den Sie bei der Die Verbesserung Ihrer Fähigkeit, MBM in all diesen Bereichen उनको सफल बनाने मᴂ मदद करने के ललए उत्तरदारी हℂ। कोच मᴂ, इसका अर 㔯 है, तर करना, एक दल का यनमा㔯ण करना, हमारे साझा मलू रⴂ को प्रदलश㔯त करना Ausführung Ihrer gesamten Arbeit verwenden können.さんのチームメンバーが常日頃から、価値の創出のために取り入れ Obwohl keiner anzuwenden, erfordert eine gezielte und bewusste Praxis. Suchen उनहᴂ Market-Based Management® समझाना और लाग ू करवाना। एक दल और लसखाना, RR&Es को पररभावित करना, प्रलशक्षण तरा ववकास, प्रदश㔯न von uns jemals perfekt sein wird, sind tägliche Anstrengungenられるような技術や手法に関する知識を、社内外および担当分野の Sie sich Hilfe und AnleitungJako przełożony von Ihrem jesteś eigenen odpowiedzialny Supervisor, za wspieranieIhren チャールズ・コークosób z twojego otoczenia | 会長兼NiezależnieCEO od tego, jak utalentowani są pracownicy, lub jak dobre mają obecnie के प र रणामⴂ और ऐसा करने की पर㔯वेक्षक की क्षमता के बीच एक सशकत सह- का मलरांकन और अनकंपा की अनशंसाएं करना पर㔯वेक्षक केनेत तव मᴂ होती that the Role of a Supervisor document helped both the site erforderlich, um Ihr Verständnis undू Ihre Anwendungु 内外から得られよう、彼らに期待し、指導してください。得た知識 von MBMु zu Kollegen undृ Ihrer Personalabteilungw rozwoju i odnoszeniu und nehmen sukcesów. Sie W Anpassungenfirmie Koch oznacza to pomaganie im wyniki, ten stan się nie utrzyma, jeśli będą tylko utrzymywać status quo. संबंध है। आपको MBM® को सीखने और उपरोग करने के ललए अवशर उदरम है। इन सभी क्षेत्रⴂ मᴂ MBM लाग करने की आपकी क्षमताᴂ म सधार मᴂ कᴂ ह섿त verbessern. Sie müssen Ihren Mitarbeitern helfen, dasselbeをコークグループ内で役立ててくれる人と共有してください。機ू zu tun. vor, währendु Sie lernen.w zrozumieniuSie und Ihre i stosowaniu Mitarbeiter filozofii werden Market-Based eine Management®. Istnieje silna करना चाहहए; अनररा आपको सीधे ररपोर㔯 करने वाले आपको तरा संगठन को और सालभप्रार अनशीलनु की आवशरकता होती है। आपgrößere अपने Erfüllung पर㔯वेक्षक, finden, अपने wenn sie ihr volles Potenzial ausschöpfen, Um langfristig erfolgreich zu sein, muss jeder Supervisor会、テクノロジー、社員は常に変化していますから、終わりはあり im korelacja pomiędzy możliwościami przełożonego w tym zakresie, a wynikami W firmie stosującej MBM, wskazywanie pracownikom wizji, ustalanie priorytetów, पाखंडी के 셂प मᴂ महसस करᴂगे। सहरोधगरⴂ और एच आर से सहारता और यनदेशन dieप्राप Geschäftsvisionत करᴂ और जैसे-जैसे weiterentwickelt wird und ein größerer Wert für ू Unternehmen dazu beitragen, ein Umfeld zu schaffen,ません。 in dem zespołu. Musisz też sam starać się poznać i stosować MBM®; w przeciwnym budowanie zespołu, modelowanie i nauczanie naszych wspólnych wartości, आप सीखते हℂ, समारोजन करते रहᴂ। आप और आपकोKunden, सीधे र रUnternehmenपोर㔯 करने वाले und Gesellschaft geschaffen wird. sich eine ständige geschäftliche Transformation vollzieht. Die wypadku twoi podwładni będą postrzegać jako obłudnych zarówno ciebie jak definiowanie Roli, Zakresu Obowiązków i Oczekiwań (RR&E), coaching MBM आपके अनेक दायरतवⴂ मᴂ से बस एक, रा करने के ललए एक अनर ची焼 जरादा बेहतर संतरु ्र महस新たなやり方や習慣、メンタルモデル、スキル、知識を伸ばそうसू करᴂगे जब वे अपनी पण㔯ू क्षमता को समझ पाते manager, Arkadiusz Grzenkowicz, and human resources leader, Dienstleistungen, die wir erbringen, die Produkte, die wir herstellen, i organizację. ディビッド・ロバートソン |i rozwój, 社長兼 ocenaCOO wydajności i rekomendacje dotyczące wynagrodzenia należą ही नहीं है। रह आपके सभी कामⴂ को करने हेत उपरोग करने के ललए एक ु und die Art und Weise, wie wirहℂ, unsereकारोबारी Arbeit 饃र्रकोण verrichten, आगेと、自己変革に取り組んでいるあなたのダイレクトレポートを助 बढ़ती können है, और und 嵍 ाहकⴂ, कंपनी और समाज के ललए do przełożonego. Doskonalenie twoich umiejętności w stosowaniu MBM 굍े मवक㔯 है। जबकक हममᴂ से कोई भी कभी सव㔯संपनन नहीं होगा MBM के प्रयत müssen sich ändern und verbessern.बेहतर मलू Habenरⴂ का सSieजनृ die होता Erwartung है। und Filozofia MBM to nie tylko jedna z twoich odpowiedzialności czy jedna we wszystkich tych obszarach wymaga ukierunkowanej i celowej praktyki. समझ और उसके अनप्ररोग मᴂ सधार के ललए दैयनक प्ररास की ज셂रत है। ु ु lehren Sie Ihr Team, sich unermüdlich Kenntnisse über Technologien z dodatkowych czynności do wykonania. To struktura mająca zastosowanie Szukaj wsparcia i wskazówek u swojego przełożonego, współpracowników आपको ऐसा करने मᴂ अपने कम㔯चारररⴂ की अवशर मदद करनी चाहहए। und Methoden innerhalb und außerhalb des Unternehmens und Charleswe wszystkichKoch | Chairman aspektach und twojej CEO pracy. Choć nikt z nas nigdy nie będzie i w dziale HR, dokonując korekt w miarę swojego rozwoju. Zarówno ty, jak Ihres Fachgebiets anzueignen, die Sie anpassen können, um Werte Anna Sorocynska, “to realize that Molex is serious about advancing दीर-कालीन㔯 सफलता के ललए, कंपनी को हर पर㔯वेक्षक के दवारा एक ऐसे doskonały, niezbędne są codzienne wysiłki podejmowane w celu lepszego i twoi podwładni będziecie bardziej usatysfakcjonowani, gdy poznacie swój zu schaffen. Teilen Sie dieses Wissen mit anderen bei Koch, die es zrozumienia i stosowania filozofii MBM. Twoim obowiązkiem jest wspierać pełen potencjał, gdy wizja biznesowa zostanie rozwinięta, oraz gdy वातावरण के यनमा㔯ण की ज셂रत है, जहाँ सतत कारोबारीnützlich परर findenवत㔯न हो könnten.रहे हℂ। Da sich Chancen, Technologien und Personal हमारे दवारा प्रदान की जाने वालीसेवाएँ, हमारे दवाराständig बनाए verändern,जाने वाले उत wirdपाद diese Arbeit nie enden. swoich pracowników w tym samym. wypracujecie większą wartość dla klientów, firmy i społeczeństwa. और हमारे दवारा ककए जाने वाले कार㔯 बदले और अवशर सधारे जा सकते हℂ। Es ist vonु entscheidender Bedeutung, dass Sie Ihren Mitarbeitern W celu osiągnięcia trwałego sukcesu, dla firmy niezbędne jest, by każdy आप अपने दल से कंपनी के अंदर रा बाहर तरा अपनेdabei क्षे त्रhelfen, की sichउन aufतकनीकⴂ persönliche Veränderungenचार㔲㔸 कोच einzulassen । प्रधान undएवंख㔯मु का㔯㔸पालक अधधकारी Koch’s MBM culture, and that leaders will be measured on it.” Dave Robertsonprzełożony |tworzył President środowisko, und COO w którym następuje ciągła transformacja एवं ववधधरⴂ का 煍ान अरक 셂प से अरज㔯त करने की आशा रखᴂ तरा उसके ललए neue Praktiken, Gewohnheiten, mentale Modelle, Fertigkeiten biznesowa. Usługi, które dostarczamy; produkty, które wytwarzamy i sposoby, लश啍क्षत करᴂ, रजनहᴂ आप मलर सजन के ललए अनकललत कर सकते हℂ। कोच मᴂ ू ृ ु ू w jakie wykonujemy swoje obowiązki mogą i powinny się zmieniać i rozwijać. 煍ान को उनके सार साझा करᴂ, रजन के ल लए रह उपरोगी हो सकता है। चंकक ू Ćwicz ze swoim zespołem i oczekuj od niego ciągłego zdobywania - zarówno अवसर, तकनीकᴂ तरा कम륀 हमेशा बदलते रहते हℂ, इसललए काम कभी समापत Charles Koch | w obrębie firmy i swojej dziedziny, jak i poza nią - wiedzy dotyczącej technologii Przewodniczący zarządu i CEO नहीं होता है। डेव रॉबर㔸㔲न । अध㔯क्ष एवं मख㔯ु का㔯㔸कारी अधधकारी i metod, którą możesz zaadaptować do tworzenia wartości. Dziel się tą wiedzą आपको सीधे ररपोर㔯 करने वालⴂ के वररकतगत पररवत㔯न मᴂ आपके दवारा सहारता z innymi osobami w firmie Koch, którym może być ona przydatna. Ponieważ At the Guardian Glass plant in Thalheim, Germany, a review of the okazje biznesowe, technologie i personel ciągle się zmienia, to zadanie nigdy करना भी महतवपण㔯ू है- नई अनशीलनⴂ,ु आदतⴂ, मानलसक मॉडलⴂ, कौशलⴂ तरा 煍ान को ववकलसत करना। कम㔯चारी आज चाहे ककतने भी प्रयतभाशाली हⴂ रा nie będzie ukończone. ककतना भी बेहतर प्रदश㔯न कर रहे हⴂ, रहद वे ररार्रयत ही बनाए रखते हℂ, तो Jest także kluczowe, byś pomagał swoim podwładnym w osobistej przemianie - Dave Robertson | Prezes zarządu i COO वे अप्ररकत हो जाएंगे। updated Role of a Supervisor document helped remind a business ु rozwoju nowych praktyk, zachowań, modeli mentalnych, umiejętności i wiedzy. leader of the value of comparative advantage. The leader then reassigned roles accordingly, improving his team’s results while helping his direct reports find greater fulfillment. “Our culture is essential for our success,” said Market-Based In Al Jubail, Saudi Arabia, the document has prompted Guardian Management president Steve Daley. leaders to work harder at connecting their direct reports to the “Everyone has a supervisor, and most people judge a company company’s vision and priorities. — to a large degree — based on their relationship with their supervisor,” Daley said. EMAIL US And in Irapuato, Mexico, where SRG Global has been challenged to [email protected] distinguish its culture from other employers in the region, the new “That’s why it is essential that supervisors are absolutely document not only reminded leaders of their responsibility to build grounded in what we do and how we do it.” and advance MBM culture, but of the value our MBM culture has in attracting and retaining new talent.

3 A CENTERED APPROACH

Koch Industries, the Koch family and the TMCF is also using a portion of Koch’s seminar network organized by Charles commitment to establish university Koch are all major contributors to dozens centers that study the underlying of organizations that serve troubled conditions in fragile communities. communities and help transform lives. The Center for the Study of Economic Koch’s desire is to generate awareness Mobility at Winston-Salem State and funding for hundreds more. University is already up and running. What is it these programs do? And how A similar center at Texas Southern well are they really performing? University will soon open, and a third is planned at Albany State. Here is a helpful overview of just a few of the many Koch-supported organizations For Winston-Salem State’s neighbors, lack of social mobility is an acute problem. that are focused on fragile communities Rasheeda Shankle Young people living near that historically across the United States. CEO, Two Generations black university are among the least likely in the nation to move up the income ladder as adults. Shankle launched Two Generations in Winston-Salem, North Carolina, in Dr. Craig Richardson, director of the MAKING VISION A REALITY March. It targets single moms making Center for the Study of Economic Mobility, less than $15,000 a year who have no In November 2016, Koch Industries and is committed to a multi-disciplinary college degree and are raising daughters the Charles Koch Foundation announced approach. “We’re asking professors in middle or high school who want to a $25.6 million commitment to the in psychology, business, education, attend college. Thurgood Marshall College Fund — economics and information systems to one of the largest-ever gifts to that help us understand the barriers to upward Mothers and daughters accepted organization. mobility,” Richardson said. into Two Generations are required to attend weekend or evening classes on Since then, TMCF has used Koch’s “We need to know, what’s keeping people financial planning, budgeting and how funding for several important initiatives, back? Where are the broken rungs on the to improve their credit scores. They are including the establishment of the ladder?” Graduate and undergraduate also coached on healthy lifestyles and Center for Advancing Opportunity. students whose TMCF scholarships are how to prepare for college. CAO’s mission is to move people living funded by Koch are helping come up with Mothers are required to save $10 to in fragile communities from promise to the answers — and the solutions. $25 each month, which the program prosperity. The organization believes the One of the solutions that most excites matches. For many, it is the first time best way to advance opportunity begins Dr. Richardson is Two Generations, an they have ever had savings of any kind with listening to those who face barriers organization created by Rasheeda Shankle. — or their own bank account. to true fulfillment. TWO GENERATIONS “What’s great about this program,” That’s why CAO recently worked with said Dr. Richardson, “is that it provides Gallup to design a poll that captures the Not long ago, Rasheeda Shankle was a a proven template for others to use in real sentiments of at-risk communities single mom, working for minimum wage addressing a widespread problem. regarding well-being, crime, education and dreaming of earning a college degree. “We’re going to share this example with and social barriers to opportunity. Today, she is not only a college graduate as many organizations as possible.” After identifying a community’s issues planning on an MBA, she is the CEO of and opportunities, CAO then works a non-profit organization committed to to equip people with the appropriate helping single moms and their daughters intellectual and financial resources. break the cycle of poverty.

4 EMPOWERING DALLAS

Studies have shown that the cycle of poverty is often perpetuated by just five things: chronic unemployment; breakdown of the family; addiction or trauma; personal debt; and educational failure.

Pro Football Hall-of-Famer Deion Sanders and the Koch-supported Stand Together network have joined forces to launch a program, called Prime 5, to address those problems head-on in Dallas. PROTECTING DREAMERS Sanders and Stand Together have a fundraising goal of $21 million — money that Sometimes Koch’s support for important will be spent at the grassroots level in an effort to promote change. issues takes the form of editorials or opinion Early this year, Prime 5 awarded $25,000 grants to 12 grassroots community pieces in national publications. That was the organizations. These range from the Akola Project, which provides vocational case last December, when Apple CEO Tim training and flexible employment for disadvantaged women, to Mercy Street, a Cook and Charles Koch co-wrote an op-ed in faith-based organization that uses mentors, coaches and interns to help restore The Washington Post. families and develop future leaders. The two business leaders encouraged the “We are building a team of highly effective U.S. Congress to take immediate action organizations that are united in helping the people on legislation protecting “dreamers,” the of Dallas to improve their lives,” Sanders said. children of undocumented immigrants. “I’m proud to support these impressive groups.” “We know from experience,” the CEOs prime5.org wrote, “that the success of our businesses depends on having employees with diverse backgrounds and perspectives. In Dallas, 46 percent of children live in single-parent homes, many of them below the poverty line. For “The United States is at its best when all disadvantaged sixth- and seventh-graders, the people are free to pursue their dreams. No failure rate on standardized tests is 50 percent. society can truly flourish when a significant portion of its people feel threatened or unable to fulfill their potential.”

The list of Koch-supported organizations is lengthy. This issue, they concluded, “is a political, A sampling of several is shown below. economic and moral imperative.”

Some groups focus on criminal justice reform. Others In February, Koch was one of many are committed to rolling back harmful regulations that corporations sponsoring The Latino prevent people with very little from starting a business or Coalition’s Legislative Summit in getting a job. Washington. It included U.S. Secretary of Labor Alexander Acosta and Sen. Orrin Hatch More than a few are fighting for meaningful education as featured speakers. reform. Others battle homelessness and drug addiction in their communities. Hector Barreto, chairman of TLC, said its non-partisan purpose goes beyond All of them have one thing in common: a desire to make connecting Latino entrepreneurs with the world a better place by helping people from all walks influencers. “For this job creation and of life realize their full potential. economic growth to endure, small businesses kochind.com/giving stand-together.org must continue to win and be heard.” advancingopportunity.org tmcf.org changelives.org urbanprep.org TLC wants to help create “an environment phoenixrisingrecovery.com urbanspecialists.org where Hispanic entrepreneurs thrive.” riseupforyouth.org youthentrepreneurs.org safestreetsandsecondchances.com thelatinocoalition.com 5 Noteworthy

Smaller Faster Lighter Denser Cheaper by Robert Bryce

This book is not only about the relentless changes that have transformed countless products and services, it is about the way those improvements have enhanced our lives — helping us to live longer, happier and healthier. Koch-Glitsch made 158 of these 28-foot-wide fractionation trays for Flint Hills Resources’ propylene splitter tower in Houston. Bryce’s book is also a fiery retort aimed at the environmental and political extremists who want developed nations to reject capitalism, All together now… economic growth, modernism and many forms of energy.

James Rhame, site manager for Flint Hills case, it means some significant added “Their outlook,” writes Bryce, “rejects Resources’ chemical plant in Houston, is a value for their Houston plant.” innovation,” and is “rooted in the notion happy camper these days. That’s because Rhame noted that Koch-Glitsch, another that any large business is one to be feared. last year’s turnaround there exceeded his Koch Chemical Technology Group “We have to discard the notion that profits expectations in several ways. company, was a big contributor, too. are bad.” Turnarounds are regularly scheduled “We put their trays in five or six of our Rather than a message of fear and decline, maintenance on a very large scale. They towers, which was the first time Bryce, a senior fellow at the Manhattan require shutting down the plant and Koch-Glitsch designs had been used at Institute, offers a much more uplifting often involve repairs or modifications. this plant (acquired by FHR in 2014). vision of the future. Turnarounds are essential for safe and efficient operation. “The largest installation was in our “We must accept — and better yet, celebrate propylene splitter, which is 375 feet — the tinkerers and entrepreneurs who are What made this turnaround notable was tall and 28 feet in diameter. Their tray designing better batteries, more efficient the involvement of several Koch companies efficiency far exceeded our plans.” lights and better drill rigs in the hope of and the results they produced. Koch-Glitsch, through its specialty making money,” writes Bryce. “This turnaround was the largest use of plant service company, KSPS, also came “We humans are not going to retreat back to Koch technology at a Koch site that I’ve up with ways to help FHR optimize its the grinding poverty that stunted so many ever seen,” Rhame said. “It started with turnaround schedule. “We were able to lives in the past and continues to do so in John Zink and INVISTA Performance re-tray within our critical path work, the world’s least-developed places.” Technologies doing some really so we didn’t extend the outage,” transformational work. Instead, we “must continue creating new Rhame said. “That’s huge, because tools and nourishing new ideas. Our future “IPT used Computational Fluid Dynamics we’re out of business until these depends on innovation.” modeling in a way that allowed us to solve projects are completed.” some reliability problems. There’s an art to The breakthrough technologies and that, and they really changed our approach. improved performance that these Koch “Then John Zink did a great job of turning companies provided for FHR have made We must move past the IPT’s designs into reality. Their work on a believer out of Rhame. nozzles for our units was very successful.” fear of technology to “At this stage we’re very pleased. “Saying you came up with a new nozzle They’ve really opened our eyes to where an understanding that design doesn’t sound very significant,” else we can use this transformational technology isn’t the admits Mike Pickens, president of INVISTA technology. We couldn’t have done it Performance Technologies, “but in FHR’s without their help.” problem; it’s the solution. – Robert Bryce 6 Looking Back

(l-r) Olive Ann Beech, Gladys The Wichita Art Association awarded Mary Koch Wiedemann and Mary Koch at the this Medal of Honor for her 40 years of service A page from Mary Koch’s October 1966 opening of a show as a board member. It was designed by world- sketchbook. at the Wichita Art Association. renowned sculptor Bruce Moore, a Kansas artist. New ways to keep learning

Mary R. Koch (1907 – 1990) was not only an Following her marriage to Fred Koch in Mark Arts’ new home is a 40,000-square- intelligent woman, she was a gifted artist 1932, Mary continued to draw and paint, foot state-of-the-art facility in Northeast who wanted to elevate the arts and inspire and developed her skills as a silversmith, Wichita that opened to the public in January. the artist in everyone. enamelist and jewelry maker. Her works It provides impressive gallery space for a were exhibited at galleries and museums After graduating from Wellesley College with study collection as well as rotating exhibits. in Mexico City, Colorado Springs, San a degree in French and English, Mary made The great hall has also been used for vocal Antonio, Omaha and a wide variety of a point of studying for two more years at the and dance performances, and can be rented venues in Wichita. Kansas City Art Institute in her home town. for private and non-profit events. Those experiences reinforced Mary’s Wellesley “didn’t have an active course in Mark Arts promotes creativity in a number belief in a hands-on approach to teaching art,” Mary said. “They didn’t make jewelry or of ways — not just with drawing, painting, art, which is why she became a major pottery or anything like that. They just had ceramics, printmaking and sculpture supporter of the Wichita Art Association, art appreciation.” What Mary wanted was a classes — but with courses in culinary the city’s oldest visual arts organization. more personal creative experience. arts, enameling, metalworking, dance and The WAA not only displayed art but digital arts. At KCAI she “took drawing and painting provided classes in how to create it. In and advertising and costume design. I was “Our vision is to provide opportunities the 1990s it was renamed the Wichita awfully glad I did.” Afterward, she was hired for appreciating and creating art in an Center for the Arts. Today, it is Mark Arts, to create ad layouts and costume design for atmosphere of lifelong learning,” said Katy the Mary R. Koch Arts Center. the Nelly Don Dress Company in Kansas City. Dorrah, executive director of Mark Arts. “We want this to be an artistic hub for the entire community.

“This building is the perfect tribute to Mary Koch, because there is something here for everyone.”

markartsks.com

Earlier this year, Mark Arts hosted an exhibition of works by Kansas artists, including this painting by Tim Stone, The new Mary R. Koch Arts Center opened in January. “Sometimes You’re Really Alone.”

7 Perspective Walt Malone Vice President — Human Resources Koch Industries

The rate of change in our world is greater today than it ever was before.

Your banking experience is a good example. Today, you can make deposits, pay your bills, transfer money and check your balances anytime, anywhere you want using your smartphone. There’s no need to go to the bank to handle most transactions. This saves time and resources and reduces the direct costs to deliver those services.

For any company to be successful over the long-term, it must continuously find new Ask yourself, “How well am I doing in Ask yourself, “How can I use self-service and better ways to meet its customers’ understanding and using technology tools more effectively in my areas of needs. Otherwise, it will be disrupted applicable to my role today? How well responsibility?” and put out of business. This is creative have I embraced these tools to improve DATA ANALYTICS destruction in action. productivity? How well have I embraced technology to transform how I do my job As more technology is deployed, we will Over the past few years, technology to create greater value?” capture more data in our systems. Data advancements in artificial intelligence, cloud analytics can help us run our businesses computing, software as a service, the internet NETWORKING better and see new opportunities. of things, robotics, automation, sensors, The quickest way to learn something new is apps and data analytics (just to name a few) However, this requires building skills in to seek knowledge from others. Establish are transforming the way businesses provide data analytics to aggregate, integrate and build your networks. Benchmark with and receive services. and manipulate it to improve the people across Koch’s businesses and other business. These advancements in technology are industries to discover the best methods. also changing the way we do our jobs. This Ask yourself, “How can I utilize the data Even if the ideas originate from different presents a huge opportunity for employees to in our systems to identify opportunities industries, ask yourself, “How can I transform the skills and knowledge they need to improve my business or capability?” modify, adjust or customize those ideas to to be successful. create value for my organization?” KNOW THE UNKNOWN No matter which Koch company you work for Monitor networking sites for new ideas. Be Although the future is unknowable, there or what your role may be, here are some focus active on sites such as Yammer to seek out can be no doubt that creative destruction areas that will help you prepare for the future. and share knowledge with others. Make will accelerate as businesses deploy BE A LIFE-LONG LEARNER information requests or ask for help from technology to find new and better ways mentors or content experts. to create value for their customers. Be curious about things. Come to work every day expecting to learn something ANTICIPATE CHANGE You, too, can be ready for the future by new. Continuously transform yourself. Take being a life-long learner, embracing Thinking forward and focusing on what it on yourself to grow your skills, knowledge technology, building your networks, is coming next gives organizations a and capabilities in areas that will help you anticipating change, and using self- competitive advantage. We all need to update in the future. service and data analytics tools to our skills and knowledge continuously. innovate new and better ways to create There are many self-directed learning Ask yourself, “What technologies, methods value for others. opportunities available on the internet, or tools are coming next? How do I best including the MBM® learning website, Koch’s As Charles Koch said in a recent interview: expose myself to them to create greater Innovation University, YouTube and podcasts. “Our philosophy is that, no matter value in my business and in my areas of how well we’re doing — whether in our Ask yourself, “What ideas, methods, tools or responsibility?” individual roles, our businesses or our technology can I learn to keep on the leading capabilities — it can be done better. edge of my job, business or industry?” SELF-SERVICE Many companies are using artificial “That’s why we always need to be striving EMBRACE TECHNOLOGY intelligence technology to encourage to advance and find improved approaches. In the past year, we have seen many new consumers to use online, self-service tools We want all our people experimenting opportunities to embrace technology across to resolve issues, make purchases and get every day to find better ways — large or Koch, including Office 365, OneDrive, information. This trend will only accelerate small — to do things and be exposed to Yammer, Skype for Business and Compass. in the future. what’s going on everywhere in the world.”