APRIL 2017 Discovery THE QUARTERLY NEWSLETTER OF KOCH COMPANIES “Do it, or we’ll end up in the dumpster.” THE REQUIREMENT significantly enhances collaboration, because engineers in different countries That’s what Charles Koch said to the Dave Robertson, KII’s president and and different parts of Koch can work on the leaders of Koch Industries at a landmark COO, is emphasizing that Koch’s vision same projects in real time,” Slark said. meeting in February. The focus of for transformation must never lose sight that meeting was the need to embrace of results. EMBRACING AND DRIVING CHANGE technology-driven transformation across “We need to make sure this is a all of Koch. As Charles notes in his Perspective editorial profitable transformation,” says on page 8, transformations are nothing new “We built Koch Industries through Robertson. “Back in the 1990s, we had for Koch. This one is merely the latest in a perpetual transformation,” Koch noted, a strong vision for growth, but much of series that began in the early 1960s. “but what we’re faced with now may be it ended up being unprofitable growth. the greatest change of all — that is, a We don’t want to transform just for What makes this transformation different change based on the need to compete in transformation’s sake. goes beyond the fact that it is technology- a knowledge-based driven. It is also remarkable for its scope. “What we want to future.” Virtually everyone’s role do is use technology “Virtually everyone’s role is going to With that challenge in is going to change. to conduct our change,” Koch predicts, “beginning with our roles as leaders. We must gain the mind, Koch announced – Charles Koch current businesses some significant more efficiently tools to help our people change their roles, organizational changes in March. Jim and effectively. We also want to use beginning with ourselves. Hannan and Brad Razook were both transformation in a way that gets us into “We’ve seen this coming for some time,” promoted to new roles overseeing new and profitable businesses, as Molex Koch concluded. “One look at the current multiple Koch companies, and charged is doing with medical products.” state of retail or newspapers is all you with driving the latest transformation of Both Charles Koch and Dave Robertson need to confirm that technological Koch Industries. point to Molex and INVISTA as being change is inevitable — even for education As Charles wrote in an email to all technology leaders among Koch’s diverse and politics. employees: “Jim and Brad will be array of companies. “That’s why we all must commit to responsible for driving improvements “Koch bought Molex, not because we transforming ourselves before others do. and advances in their respective were a connector company,” says Martin “Let’s make it happen.” businesses, including the application of Slark, its CEO, “but because we gave technology, software and data analytics. Koch an important toehold when it “Koch has invested nearly $14 billion comes to technology. THIS ISSUE... in these areas to not only keep us at 3 Charles Koch’s books: going global “One of the important lessons we’re the forefront of the industries in which sharing is that we need to be integrated 4 Transformations already underway we operate, but to drive continual globally to compete. For example, 7 Ten reasons to look forward to the future transformation.” ® combining technologies and MBM 8 Perspective: Charles Koch on transformation 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. When Koch promoted “Introduce On LinkedIn, Darius Little posted: We would like to offer our warmest a Girl to Engineering Day” on “Americans, including African appreciation for Georgia-Pacific Facebook, Manufacturing Talk Radio replied: Americans, now know what a good Foundation’s support of our mission “It continues to be important to break down man you are, Mr. Koch. We appreciate to transform the lives of high- the gender gap. Expanding the workforce can your efforts with #JudicialReform. … potential teens from challenged only benefit engineering and manufacturing. Mark Holden’s LinkedIn articles have environments, empowering them Thanks for sharing! Happy we found this.” helped open many of our eyes. Stay to lead themselves and their encouraged and #KeepPushing.” communities. Your help makes a difference. Our program has a 100 percent year-over- year retention rate. And 100 percent of our program graduates have gone on to college or the military. We call that “success” — a real example of odds truly changed for underserved teens. And we couldn’t have done it without you. Chandra Stevens-Albright Executive director The C5 Georgia Youth Foundation Atlanta, Georgia On behalf of Wichita Public Schools, I On April 6, the U.S. Environmental want to thank the Fred and Mary Koch Protection Agency announced that Foundation for another outstanding Koch Industries won the 2017 ENERGY learning experience with Gilder STAR® Award for industrial energy Lehrman programs. The response management, the EPA’s top award. was overflowing and participants This honor is based on annual energy thoroughly enjoyed learning about savings among industrial sites. the Gilded Age from Dr. Simpson. Koch sites saved an estimated Our teachers were excited to $250 million worth of energy during obtain resources and experience the past five years. literacy strategies that they could Although Koch companies have been immediately implement in the recognized by the EPA for various classroom. We are already looking Discovery accomplishments in the past, this forward to the next seminar. April 2017 was the first time KII has been Georgia-Pacific is Volume 23 | Number 2 Without your generous support, these honored in this particular category. continuing its efforts to experiences would not be possible. At an April 26 awards banquet in transform the way people DISCOVERY ONLINE We are sincerely grateful for all of the KOCHnews.com/media- Washington, D.C., EPA administrator think about strength. For programs and learning opportunities resources Scott Pruitt presented the award to David the second year in a row, that Koch has supported over the Dotson, KII’s vice president of operations GP promoted the hashtag EDITORIAL BOARD years. Our teachers, and ultimately and compliance. #StrengthHasNoGender Susan Armitage our students, continue to benefit from Philip Ellender in March, which is these opportunities. Dotson Jeff Gentry accepted Women’s History Month Greg Guest John Mark Nickel on behalf in the U.S. Charles Koch Social Studies & World Languages Steve Lombardo of all Koch Pro tennis player Venus USD 259 Wichita Public Schools Walt Malone companies, Wichita, Kansas Williams helped kick off Dave Robertson saying, “We’re not only honored to this year’s campaign, Peter Ventimiglia receive this award, we’re really looking which included a limited- forward to sharing our knowledge and edition redesign of the EMAIL US best practices with others who want to do iconic Brawny® paper [email protected] the same.” towel package. www.KOCHind.com 2 © 2017 Koch Industries, Inc. Koch is an EOE. M/F/D/V. International News London – Worldwide interest in Charles Koch’s books about Market-Based Management® has led to some interesting developments this year. In January, Charles Koch’s 2007 book, “The Science of Success,” was published in Arabic by the London- based Hindawi Foundation for Education and Culture (a nonprofit organization that promotes education, culture and love of reading in Arabic-speaking communities). A Japanese version of Koch’s latest book, “Good Profit,” was published in January, followed by Korean and Chinese translations in March. A contract for a Romanian version has been signed and efforts are underway to secure a Spanish translation. For those who prefer their MBM® with a British accent, a slightly modified version of “Good Profit” was published in Great Britain in 2015. (A blurb on the back cover, for example, says “nappies” instead of “diapers.”) Piatkus Press, Koch’s U.K. publisher, has distribution rights in 52 Commonwealth of Nations territories. In February, Koch received a request to publish “The Science of Success” in Vietnamese. Ironically, the original version is now out of print in the U.S. Translations of Koch’s first book already include Korean, German, Portuguese and two forms of Chinese. Kontiolahti, Finland – Although most Koch companies are headquartered in the U.S., they all rely on the shared knowledge and talents of employees around the world. For Phillips-Medisize (see page 7), one of the newest Koch companies and a Molex subsidiary, many design and development breakthroughs occur close to the Arctic Circle, at a specialized site in southeastern Finland. In 2013, the company completed a 60,000-square-foot expansion of its facility in Kontiolahti. That plant specializes in the production of complex drug delivery devices, such as insulin injector pumps. Despite the high complexity of these devices, the assembly lines at Kontiolahti are both high-speed and high-volume. “We have superior molding technology at this plant,” said Matt Jennings, the company’s CEO, “which enables us to ramp up very quickly when a customer has a new design they want to DISCOVERY ONLINE put into production.” KOCHnews.com/media- resources About 1,500 kilometers (932 miles) away in Denmark, Phillips- Medisize maintains what it calls a “design hub” in Struer. It is home to a wide range of innovative engineering resources. Other Phillips-Medisize plants in Letterkenny, Ireland, and Nurensdorf, Switzerland, specialize in diagnostic devices, consumables (disposables) and pharmaceutical packaging. Packaging is also the specialty of a site in Queretaro, Mexico, the former home of an INVISTA polyester facility.