NEW YORK TIMES BESTSELLER • Learn how to apply the principles of Charles Koch’s revolutionary Market-Based Management® system to generate good profit in your organization, company, and life
“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, co-founder and co-CEO, Whole Foods Market
The technological innovations, extreme politics, civil unrest, cyber attacks, demographic shifts, and global pandemic that have affected all businesses since this book was published have only confirmed Charles Koch’s belief that “the only reason a business should exist (and the only way it can legitimately survive long term) is to create value in a responsible way.” Hence, the principles in Good Profit are more important today than ever before.
What exactly does Koch Industries, Inc., do and why is it so remarkably profitable? Koch’s name may not be on your home’s plywood, vehicle’s grille, smartphone’s connectors, or baby’s ultra-absorbent diapers but it makes them all. And Koch’s Market-Based Management® (MBM) system is what drives these innovations and many more.
The core objective of MBM is to generate good profit. Good profit results from products and services that customers vote for freely with their dollars. It results from a bottom-up culture where employees are empowered to act entrepreneurially to discover customers’ preferences and the best ways to improve their lives. Drawing on six decades of interdisciplinary studies, experimental discovery, and practical implementation across Koch businesses worldwide, Charles Koch walks the reader through the five dimensions of MBM to show how to apply its framework in any business, industry, or organization of any size. Readers will learn how to:
• Craft a vision for how to thrive in spite of increasingly rapid disruption and ever-changing consumer values
• Select and retain a workforce possessing both virtue and talent
• Create an environment of knowledge sharing that prizes respectful challenges from everyone at every level
• Award employees with ownership and decision rights based on their comparative advantages and proven contributions, not job title
• Motivate all employees to maximize their contributions by structuring incentives so compensation is limited only by the value they create
A must-read for any leader, entrepreneur, or student, as well as anyone who wants a more civil, fair, and prosperous society, Good Profit is one of the greatest management books of all time.
Koch (The Science of Success), chairman and CEO of Koch Industries, Inc., issues a rambling rah-rah for his company's operating philosophy. Koch took over from his father, Fred, at 32, and since has guided the company to great heights, in the process making himself the fourth wealthiest man in America. He attributes this success to Market-Based Management, a "unique business management framework," which has allowed Koch Industries to outpace competitors for decades. Koch discusses his relationship with his father and three brothers particularly David, his partner in Koch Industries and addresses areas in which he think the company succeeds despite what he views as an unacceptable level of government interference in business. Peppered with buzzwords and high-minded statements about the importance of hard work, intuition, and innovation, this effort comes across as a book-length advertisement for Koch Industries' products, and for himself as a businessman. A few cursory case studies round out the offering, but all but the most devout fans of the Koch brand are likely to find this too self-congratulatory and slim.
If you want to learn about business and learn strong principals, then this book is a requirement.
A must read for anyone who works and earns money. Everyone can benefit from this book!