Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies
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 $110 billion global corporation – one of the largest private companies in the world today, with value growth exceeding that of the S&P 500 by 30-fold.
So how did this MIT engineer manage to increase Koch Industries’ value by 5,000 times 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 reader 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.
Author: Charles G. Koch