The unique management system from a legendary CEO
In 1967 Charles Koch took the reins of his father's company and began the process of growing it from a $21 million start-up into a global corporation with revenues of about $115 billion, according to Forbes.
So how did this MIT engineer manage to grow Koch Industries into one of the largest private companies in the world today, with growth exceeding that of the S&P 500 by almost 30-fold over the last five decades? Through his unique five-dimensional management process and system called Market-Based Management. Based on five decades of cross-disciplinary studies, experimental discovery, and practical implementation across Koch companies and their 100,000 employees worldwide, the core objective of Market-Based Management's framework is as simple as it is effective: to generate good profit.
What is good profit? Good profit results when a company creates value for customers in a way that helps them improve their lives. Good profit is the result of innovations that customers freely vote for with their own dollars; it's the result of business decisions that create long-term value for everyone - customers, employees, shareholders, and society.
While you won't find the Koch Industries name on your home's stain-resistant carpet, your baby's more comfortable but absorbent diapers, your stretch denim jeans, or your television with a better clarity screen, MBM drove these innovations and many more.
Here, drawing on revealing, honest stories from his five decades in business - the company's many successes as well as its stumbles - Koch walks the listener step by step through the five dimensions of Market-Based Management to show stockholders, entrepreneurs, leaders, students - and innovators, supervisors and employees of all kinds, in any field - how to apply the principles to generate Good Profit in their organizations, companies, and lives.
©2015 Charles G. Koch (P)2015 Random House Audio
"Charles Koch is right, there is a difference between Good Profit and bad profit. And this book helps show you the way to good profit - whether you work for an international supermarket chain, a medium-sized regional business, or your own start-up." (John Mackey, cofounder and Co-CEO, Whole Foods Market)
"Charles Koch is a genuine patriot, and his lifelong mission is to make America as strong and free as she can be. He believes the principles of economic opportunity that have guided America are worth protecting. This book will teach us how." ([Papa] John Schnatter, CEO, Papa John's Pizza)
"Here is a clear example of the American dream and how our country benefits when successful entrepreneurs create new jobs (and more taxes for government services) while providing the golden egg for philanthropic efforts. The real story behind this book is not just Charles Koch's secret to success - it is the remarkable path he and his brother took in becoming two of America's most generous philanthropists. Their recipe for creating "good profits" has enabled them to grow their businesses, reward their employees and still have plenty left over to invest in the nation's most important charitable groups and institutions supporting America's freedom. It is a worthwhile read!" (Charles R. Schwab)
I believe that if you truly understand Market Based Management philosophy introduced in this book, then you have the best chance of succeeding in your business endeavors. I have read a lot of business books on how to succeed in business. This book gave me a better framework and more ideas to implement than any other I have read.
I believe this is a great blueprint to implement in my business and look forward to using these ideas.
I recommend this book to everyone.
The path to success is different for each person. What's important is discovering “Your Path” so you know exactly what to do to be your best
I recommend this book from business entrepreneurs to parents that desire to empower their kids. I believe competency is the mirror image of accountability with integrity.
As a peak performance strategist looking forward to share this book with all of my clients and their employees.
Thank you for sharing.
The theme of the book is excellent, and many good stories and real life applications are within. With that being said, more of it wasn't overly interesting or applicable to 90% of business owners out there.
This book gave me a different view of the Koch family. I might not agree with their politics but their philosophy of business is hard to dismiss. It is customer - focused and not driven solely by the immediate bottom line.
If you're looking for a 12 step process for increasing profits, this book is not it. If you're looking for new concepts and ideas that will help you shape up into more profits then you will appreciate this book. I really enjoyed the family history that he provides as well as I enjoy classic rags to riches stories of immigrants that came to America with a dream.
I would not recommend this book. Science of Success, his earlier book, has similar themes and is better written.
Decision rights and a challenge tolerant work environment are great features of the Koch culture. These are spoken of in both books.
Charles is clearly an industrial giant and an American hero. Reading this book I was left feeling I was reading the blurred teachings of a man whose best days are behind him.
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