Good Profit

By: Charles G. Koch

Narrated by: Paul Michael, Charles G. Koch

Length: 9 hrs and 15 mins

Publisher's Summary

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

Critic Reviews

"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)

Science of Success is better

Would you recommend this book to a friend? Why or why not?

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.

Any additional comments?

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.

3 of 3 people found this review helpful

Business Owners - The only book you need to read!

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.

2 of 2 people found this review helpful

I admire many of Koch's businesses. Great Book.

Would you listen to Good Profit again? Why?

Yes. Koch gives simple solutions many people seem to miss in business. He has wrapped this into a program that has been taught throughout his company. If he offered a course to non employees, I would go. I can apply these daily. For example, who owns the risk in an agreement (contract). Are they really capable of owning that risk. Other topics include compensation and evaluating employees, consultants, products that succeed, products that fail, etc.

Who was your favorite character and why?

I think I would say his family was my favorite character. His dad did not simply give the business. He made him prepare and earn it. In that respect, the book is also a good practice in reflecting on my own parenting.

Have you listened to any of Paul Michael and Charles G. Koch ’s other performances before? How does this one compare?

No.

Was this a book you wanted to listen to all in one sitting?

Yes.

Any additional comments?

If you don't like his politics, don't let that stop you from hearing his business wisdom. I would say how he seems to treat employees is a key indicator you can respectfully disagree politically while admiring and learning from him in other aspects.

1 of 1 people found this review helpful

Essential to any entrepreneur!

Charles Koch give us a great point of view and philosophy!

This book is to be read as many times as possible!

1 of 1 people found this review helpful

Everyone in business should read this

I like best how he explains that having a great business does not mean cheating others.

1 of 1 people found this review helpful

Delivered More Than I Expected.

Would you consider the audio edition of Good Profit to be better than the print version?

I liked both the audio and print version. I especially like that Charles Koch read the introduction.

What did you like best about this story?

What I liked best about the book was it's clear message of principled entrepreneurship

Was this a book you wanted to listen to all in one sitting?

Yes, I would have liked to listen to this book in one sitting

Any additional comments?

I'd highly recommend this book to anyone who's in business or who's contemplating starting their own business.

1 of 1 people found this review helpful

Good Profit for Business and Life!

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.

5 of 7 people found this review helpful

Very interesting!

This was a suggested read for an upcoming MBM class at my work. Being new to this philosophy I was eager to see what it was all about. I found it to be very interesting and see how the MBM philosophy is applied at work. Charles Koch hit the nail on the head!

A must read for every entrepreneur.

This book is an incredibly well-written and practical guide for any businessperson. I learned a tremendous amount from it. One of the most successful entrepreneurs of the last century put out a book that is the complete nuts and bolts of how his companies run underscored with the essential philosophy for why they run that way and why that works so well. My new favorite business book.

Principled Capitalism: Much Better than Expected

Good Profit hones principled capitalism into relevance.

Perhaps it is a bit unfair to judge a book based on the media's description of the author and his company. I selected this book expecting a highly contrarian view on business. My perception was of an insensitive monopolist who would go to great lengths to build his business and turn a profit. To the contrary, Mr. Koch clearly defines Good Profit in a responsible, professional and balanced manner that does NOT rely on hardball, imbalanced or unsafe tactics.

I discovered a very useful and informative title chocked full of pragmatic information about business and management. Mr. Koch salted the text with a variety of historic and applicable references that reflect broad literary knowledge. Personal stories further enhanced the text.

Serious business professionals should all read this book and internalize the key messages which, in general, are well-aligned with other principle-centered leaders of our time. Be prepared to take notes. There is much to be captured from this work.