As retirement looms, longtime Journey Group leader leaves legacy of commitment to community

This article was originally published by Jodi Schwan of SiouxFalls.Business.

It would be understandable if Randy Knecht looked at Journey Group’s signature projects and recognized them for the construction achievements that they are.

But he tends to take it one step further.

When Knecht looks at the Avera Prairie Center, for instance, he sees beyond one of the most memorable building projects of his career.

“It’s a beautiful building,” he said. “But the work that goes on inside the building, where people are getting cancer treatments, is really meaningful.”

At Jefferson High School, built by Journey Group, “it’s a place where students will get a tremendous education.”

At the mixed-use, multiphase Cherapa Place development built by Journey Group in downtown Sioux Falls, “this is a place where business people can come to work, and people can live in the condos, and the apartments made of mass timber bring something entirely new and unique to the state,” Knecht said.

“That’s one of the things I talk about with our employees a lot. Think about the impact you’re leaving after the project is complete.”

Knecht now can reflect with pride on more than three decades of meaningful work as he prepares to transition out of his role as CEO of Journey Group at the end of this year.

He joined the company as its controller 31 years ago and has spent about half his tenure at Journey as CEO, beginning in 2010.

“That’s a long time for one person to lead an organization of our size,” he said. “I’m very proud of our team and what we’ve accomplished up until now, and it’s just time to let someone else lead. The company is in a very strong position, and I just think the timing is right.”

As he prepares to transition the role of CEO to Brian Gramm, Knecht steps away after a decade and a half of significant growth – from 125 employees at peak season when he began in the role to 350 today.

“He’s become such a strategic leader, not only in Journey but within the community,” said Dick Molseed, who served in executive leadership at Avera Health and Avera McKennan and worked closely with Knecht.

“That’s what a lot of people don’t realize with Randy. He’s a very under-the-radar, quiet community leader and influencer in the community. I really think he’s got one of the most strategic business minds of anyone I’ve known.”

Building a brand

Knecht’s tenure as CEO includes one of the most basic but biggest changes a business can make: its name.

By 2014, after more than a century in business, Sioux Falls Construction Co. was ready for a name that positioned it for the future.

The name Journey Group was chosen to reflect “not only how we’ve grown with Sioux Falls, but how we were able to grow geographically, including with our customers,” Knecht said.

A rebrand of that scale is “tough to do. It’s a bold move, when you think about it, and they did it so smoothly and perfectly,” said Michael Bender, founder of Bender Commercial Real Estate Services and a longtime friend of Knecht’s.

“They were ready to think bigger in terms of geographic locations, and he helped them realize they can grow and get bigger. They were already headed that way but needed an impetus to do that, and Randy was the leader that did that.”

Knecht himself “embodies the character and reputation of our company,” said chief operating officer Darin Hage, who started at Journey in 1997, three years after Knecht did, and has served in leadership with him for years.

“It’s humble leadership. He’s a true professional. Just very kind-hearted and friendly, one of the nicest people you’d ever meet, so his personality just exemplifies our company,” Hage said.

“He’s always calm and stable, and that resonates across our whole company, including during challenging times. Our word is our bond, how we do business is important – with trust and integrity – and that starts at the CEO level. Randy empowered us as leaders, we felt trusted, and I think that really gave energy to all of us.”

Journey Group was founded in 1910 and serves communities across the Midwest and nationwide through its work in commercial, manufacturing, industrial, water and wastewater infrastructure, civil and heavy highway, residential and asphalt paving services.

By 2015, it was clear the company needed additional space and a more modern workplace. Under Knecht’s leadership, a new headquarters was built and later expanded in southwest Sioux Falls.

“Randy challenged us,” Hage said. “We took pride in being in this old office, but we were outgrowing it, and it was a physical constraint to our growth. He was the first to say we need to address it.”

In Knecht’s more than 15 years as CEO, Journey experienced significant organic growth but also broadened its scope into new services and geographies, from western South Dakota to projects regionwide and even nationally as the company added teams supporting areas such as food-processing construction, industrial manufacturing and homebuilding.

Along the way, Journey’s team grew, and its leadership took on more specialized roles.

“I’m proud of how we developed talent,” Knecht said. “We brought in key team members who are subject matter experts in areas like marketing, IT, finance and HR.”

Knecht’s approach to leadership has been consistently forward-looking, said Jim Wiederrich, Woods Fuller attorney and shareholder.

“If you look at the growth Journey had in his time as CEO, it’s always been looking down the road at what they should be doing, how do they get ready to compete with construction companies coming into South Dakota, how do they reach beyond the local communities, and I think they’ve done a great job,” Wiederrich said.

“They have a wonderful team that excels in construction, and Randy put the structure together internally to support their growth. It’s just fun to see how they’ve grown over the last decade or so. It’s amazing.”

From an outside perspective, “Randy embraced his leadership roles, and it wasn’t just for business. He wants a better community for his children and grandchildren,” Bender said. “You have to step up and make it better than you left it.”

‘Pillar in the community’

Knecht’s community involvement has included serving on the Avera McKennan board of trustees, the board of directors of the Sioux Falls Development Foundation and the Forward Sioux Falls joint venture management committee in addition to past service on many nonprofit boards, including as past board chair of Sioux Empire United Way.

“He’s a pillar in the community,” Hage said. “He’s very well respected, invests his time and cares about being involved. He set the groundwork and example for the rest of us in the company to realize how important that is.”

Knecht generally is quick to credit his team for the company’s success, Molseed said.

“And he should credit them, but he was the one to put the right people with the right qualifications in the right positions and to put them in an environment where they were going to succeed,” he said. “Randy did that. And that’s no small task in the construction industry.”

As Journey has grown, “it’s created more of a challenge with unified culture, so one key piece of our three-year ‘One Firm’ strategy is operating as one team versus six divisions,” Knecht said. “If we’re going to capitalize on opportunity going forward, I think that’s the vision our leadership team will need to execute.”

Within Journey, “you can tell there’s a genuine respect for Randy from his team,” Bender said. “He doesn’t lead by fear. He leads by a really strong compassion, and his whole team respects him, so it’s awfully big shoes to fill, and I think Brian is very capable of doing that.”

Gramm, who most recently served as Journey’s chief financial officer and chief strategy officer, was named CEO by the board of directors and will take on the role Jan. 1.

“The relationship Randy and I have is phenomenal,” Gramm said. “Randy is a former CFO, so we tend to see situations through a similar lens but with different perspectives. That makes a good combination. Jan. 1 is the hand-off date, but come Jan. 2, Randy is still in my corner, and you’ll see Randy representing Journey in the community as we define a new role for him.”

Journey “is in a great spot today,” Wiederrich added. “I think Randy is handing it off to a great leader in Brian, who also is someone who always looks forward. And I think you’ll see Randy continue to be involved in development, in the community and with nonprofits.”

In his next phase, Knecht plans to pursue his interest in area development, remain connected to Journey and be open to what the future might hold, he said.

“I had great mentors in people like Jack Marshman and Dave Fleck who preceded me,” he said. “I hope I helped show what it’s like to lead in the community for the next generation. That’s the one thing I’m most proud of with Journey is how much living our mission means to the organization and our ability to give back and serve the community and our clients.”

And while it might be a retirement, it’s likely not this leader’s final chapter in business.

“Don’t think the sun is setting on Randy Knecht, because it’s not,” Molseed said. “This isn’t a swan song for Randy. It’s a shifting of gears, and I think you’ll see a new strategy and vision come out of this man.”