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Matt K. Lewis
The Daily Caller
Wichita Business Journal
Charles Koch has written an excellent book, Good Profit, exploring how and why Koch Industries has been so successful. In the book… he defines “good profit” as that from which a business makes from products and services that consumers freely choose to buy. Simple? Yes, but it’s surprising how many companies forget that truth.
Michael C. Carnuccio
His Market-Based Management system draws on those same insights at the level of the individual organization, and an exposition forms the meat of the book. In essence, it is a framework for encouraging effort and creativity by devolving authority and rewarding entrepreneurship and ‘prudent’ risk-taking.
Good Profit is as much a course in ethics as one in business management, and Koch is a business icon with the soul and inclination of a philosopher. For example, he attributes much of his company’s success to his Market-Based Management (MBM) system, which he spent years developing and refining. The core tenets of MBM are vision, virtue, talent, knowledge processes, decision rights, and incentives. These aren’t just a set of feel-good slogans, but a philosophy of management that pervades all of Koch Industries.