Rising Son: Jack Stack's son moves into same post his father held

There's nothing all that unusual about a son whose career track parallels his father's, but in Ryan Stack's case, the similarities are downright uncanny.

The 30-year-old was recently named general manager of SRC Heavy Duty, the same role his father, Jack, assumed 30 years ago when the remanufacturing company's corporately owned predecessor, International Harvester, was staring down a recession of historic proportions. Jack Stack, who was sent in to shut down the company's Springfield manufacturing operations, remembers those days all too well: 11 percent unemployment, 22 percent interest rates and a Dow Jones Industrial Average struggling to stay above 700 points.

"It's really kind of ironic to see (Ryan) step into that position with not necessarily as draconian statistics, but still a really, really scary future," the elder Stack said.

And if the economic challenges aren't daunting enough, there's that inevitable father-son comparison.

"They're different but, in a lot of ways, they're exactly the same," said Steve Choate, who was Ryan Stack's predecessor before taking the lead on a new SRC venture, CNH Reman Technical Center.

Stacking up

Jack Stack is widely respected in entrepreneurial circles for spreading the gospel of open-book management and other business practices aimed at fostering what he calls a "culture of ownership." He co-authored "The Great Game of Business" and "A Stake in the Outcome" - two books viewed by many as small-business survival guides.

But Ryan Stack said his new job isn't about living up to his father's legacy as a "one-of-a-kind" leader, manager and speaker.

"It would really be a painful experience mentally to try to put that pressure on myself," he said. "I've been very fortunate he hasn't put it on me."

Ryan Stack prefers to work within the confines of tangible benchmarks for SRC Heavy Duty, which remanufactures diesel engines and components for the construction, trucking and agriculture industries at its 650 N. Broadview Place plant in northwest Springfield. Avoiding layoffs and improving communication among the SRC family of companies are his top priorities, and he's excited about the prospect of preparing the business for better times.

"It's real easy to run fast when it's for survival ... but the real difficulty comes when you get past that," he said. "You're safe, and then the motivator becomes excellence. I think the great companies figure out how to motivate with excellence."

Jack Stack said he's confident Ryan, who he described as a humble, hard-working guy with a high IQ, will excel as a GM.

"He's always liked puzzles," Jack Stack said. "And the more difficult the puzzle, the more he likes the challenge."

Ron Guinn, executive vice president of SRC Holdings Corp., said Ryan Stack has earned the respect of his peers by building relationships and taking on responsibilities beyond those spelled out in his job description. His analytical skills also made him management's top choice for shepherding the company safely through the economic tempest, Guinn added."We work inside a company that is always looking at forecasts and what could come next," said Ryan Stack, who directly supervises about 215 employees. "In a lot of ways, we're very paranoid. ... We've been preparing for a recession for 25 years."

Heavy Duty has not laid off staff during this downturn, but SRC is offering early retirement and temporary leave throughout the company, Stack said, noting that SRC has become a source of stability for its employee-owners since Jack Stack and 12 other managers bought the company from International Harvester in 1983 for $100,000 down and $8.9 million in debt.

While history appears to be repeating itself at SRC, Jack Stack pointed to one important distinction: the circumstances under which he became GM.

"When I stepped into the role, I didn't have a choice," he said. "I was sent there by Harvester. My true job was to close it down, and I couldn't do it."

A circuitous career path

SRC managers handpick their successors and groom their understudies for advancement, Guinn said.

Choate said Ryan Stack was his top pick for several reasons.

"The obvious ones are the drive and the enthusiasm," Choate said, adding that Stack's not afraid to ask questions. "And he's been over there for several years, so he knows what the job's entailed."

Stack began familiarizing himself with SRC's inner workings as a teenager looking to earn some spending money during summer and winter breaks. The paid internships continued through college, and Stack landed a full-time job with SRC offshoot PlentyofParts.com after graduating from Washington University in St. Louis. His degrees are in finance, marketing, management and international business.

PlentyofParts.com specialized in online sales of surplus and obsolete engine parts, but the company folded after a couple of years. Stack said lessons learned from the failed venture laid the foundation for SRC Logistics Inc., another subsidiary formed in 1994 that's still operating today.

Stack then transferred to Heavy Duty's finance department, where he delved into numbers that told stories about the company's performance and financial health. He said he also developed an appreciation for budgeting challenges and cost controls associated with new programs.

Sales experience came next for Stack, who was an account manager at Heavy Duty before taking over as director of sales and marketing. More recently, he supervised scheduling, purchasing and warehousing as director of supply chain management at Heavy Duty.

Stack said SRC employees routinely move throughout the organization to take on new assignments, though he admitted that he might have been subconsciously avoiding the jump to GM - a job that caused his father plenty of stress.

"The first thought that came to my mind when my boss came in and told me I'd be the GM was the thought of playing with tractors and construction equipment toys on my dad's floor in his office, which made it extremely eerie for me," Stack said.

Jack Stack said he was likewise conflicted about his first-born son's promotion.

"I didn't want any of my kids in this business," said Stack, 60, who appears to be rethinking a 2012 retirement. "And then when your kids get in the business, it's very difficult for you to walk away. ... I'm here for the fight. It's like déjà vu all over again. How do you walk out on these guys right now when their challenges are significant?"