Tippie Magazine (Summer 2021) - Tippie College of Business

If you’ve spent time in the Midwest, then you probably fueled up at least
once at a Kum & Go convenience store and gas station. With 400 stores and
5,000 associates, the family-owned company sets the standard for roadside
convenience and comfort in Iowa and 10 other states.
For 17 years, the company’s CEO was Kyle Krause (BBA85), son of Kum & Go co-founder W.A. (Bill) Krause (BA57).
In January, Kyle Krause handed over leadership of the company to Tanner Krause, one of his five children.
Kyle is now focusing on management of the Krause Group, the parent company of Kum & Go, which is
comprised of 10 other businesses, including two wineries and a professional soccer team in Italy. To help
others with management transitions, they agreed to talk about the experience and share a few tips.
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Long-term planning
is paramount
KYLE : Kum & Go senior leadership
started work on the transition
about five years ago. It was always
my hope that one of my children
would take over the company, as I
did from my father, and it was clear
to me that Tanner was ready for
the move. In many ways, we have
been planning for this transition
since he was nine years old when
he started stocking shelves and
sweeping floors at a local Kum &
Go store.
TANNER : My dad always talked about
the business with my brothers and
me when we were kids, and he
was good about teaching us about
different aspects of the business.
When I was in college, he started
introducing me to more complex
aspects of the company. I did four
internships with Kum & Go during
college, and so I explored different
divisions. In family businesses
especially, it’s essential to start
talking about succession early on,
when there’s less pressure.
Have a flexible mindset
KYLE : It was an easy decision for
me to hand over the management
of Kum & Go to Tanner because
I knew he was ready. The more
difficult question was, was I? In the
end, I let go because I knew that
the leadership team was strong and
that it was time for Tanner to bring
his vision for the company to life.
TANNER : Throughout the transition
process, there were moments
when we had to rethink
things and make unexpected
accommodations. The fact that
everyone on our leadership team
was willing to adjust expectations
was beneficial. The death of my
grandfather in 2013 is a moment
that stands out to me. At that time,
I knew for sure that I wanted to
be part of Kum & Go and cut short
a career with E. & J. Gallo Winery.
My father shifted his internal
timeline at that point.
Communication, even after
the transition, is a must
KYLE : The work on the transition
doesn’t stop the day the change
occurs. There will be things that
will happen months and years
after the handoff that will require
collaboration. Tanner and I will
always collaborate closely on
shaping the big picture.
TANNER : My father is technically
still my boss, and we have
weekly one-on-one meetings. He
continues to lead me and support
me in a similar fashion as when he
was CEO of Kum & Go. Now it’s my
responsibility to keep him informed
about the challenges we are facing
and our business strategy. I like to
be sure that we are aligned.
&
DYK?
The Kum & Go name is a mash-up of the two founders’ last names (William Krause and Tony Gentle) and the concept of quick
service. The name was adopted by the company in 1975, not long after the founders added convenience stores to their gas stations.