Portrait of Charles Koch

Six years ago, I wrote a different kind of business book.

Portrait of Charles Koch

It was not about getting rich quick or crushing the competition or trendy management techniques. Instead, it was about using proven principles to conduct business in a mutually beneficial way.

A lot of “business as usual” has perished since that book was published. Technological innovations, extreme politics, civil unrest, cyberattacks, demographic shifts and the global pandemic have accelerated the pace of change beyond what anyone anticipated.

But these tumults and upheavals have only confirmed what I said in Good Profit about the role of business in society: 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. As Koch’s Vision and Guiding Principles emphasize, the best way to do that is to focus on creating value for others, including enabling employees to self-actualize.

Giving all our employees the opportunity to realize their potential by empowering them in roles that fit their talent and passion is critical to both their success and the company’s. It also benefits everyone else. I’ve seen countless examples of this during the six years since Good Profit was published.

Ideas and innovations implemented by hundreds of employees in our refining, fertilizer, glass, and pulp and paper businesses reduced our emissions by improving our energy efficiency. This double-digit improvement helped us earn the U.S. Environmental Protection Agency’s highest honor: the EPA’s 2021 ENERGY STAR® Partner of the Year Award. Employees in Longview, Texas, are helping fight COVID-19 by supplying labs and hospitals around the world with record amounts of essential products. Our employees have even found ways to recycle previously unrecyclable products.

Again, these efforts benefit the environment, our communities and customers, not just Koch.

Personal success, business success and societal progress do not come from just wishing things were different. An effective framework for action – like the one I explain in Good Profit – is required. If you truly want the kind of self-fulfillment that comes from making other people’s lives better as well as your own, then you will find a powerful blueprint for change in Good Profit. Its timeless principles have changed my life and can do the same for you.

Charles Koch's signature

The revolutionary management system behind one of the most successful companies of our time.

A stack of Good Profit books

In this New York Times bestseller, Charles Koch shows managers, entrepreneurs, leaders, students, innovators and employees of all kinds — and in any field — how to apply the principles of his revolutionary Market-Based Management® system to generate good profit in their organizations, companies and lives.

When Charles Koch joined his father’s Wichita-based company in 1961, it was valued at $21 million. Today, Koch Industries’ revenues exceed $115 billion — making it one of the largest private companies in the world. Koch has outpaced the S&P 500’s six-decade growth by a factor of nearly 30 by focusing on creating value for its customers and for society.

Why is this global manufacturing and technology company so remarkably and consistently profitable? The answer is Charles Koch’s MBM system. By applying MBM effectively, individuals and companies deliver products and services that help people improve their lives. MBM fosters a culture where employees are empowered to act entrepreneurially to discover customers’ preferences and the best ways to satisfy them. Good profit is the earnings that follow when long-term value is created for everyone — customers, employees, shareholders and society.

Readers will learn how to:

  1. Craft a vision for how a business can thrive in spite of increasingly rapid disruption and ever-changing consumer values.
  2. Select and retain a workforce possessing both virtue and talent (the first of which is more important for long-term success).
  3. Create an environment of knowledge sharing similar to a community of scientists — rejecting bureaucracy and hierarchy in favor of a culture that prizes (and even demands) respectful challenges from everyone in the company, at every level.
  4. Award employees with ownership and decision rights based on their comparative advantages and proven contributions, not job title.
  5. Motivate all employees to maximize their contributions by effectively structuring incentives so employees’ compensation is limited only by the value they create — not budgets or companywide policy.

Lessons to Thrive By

Download short, relevant insights and mental models from Good Profit that you can start applying right now.

Five Dimensions of MBM ®

A coherent management approach comprised of five dimensions (Vision, Virtue & Talents, Knowledge Processes, Decision Rights, Incentives) that are mutually reinforcing.

Download the Five Dimensions

MBM ® Guiding Principles

Values and beliefs that define the culture of the organization. They guide every employee’s actions and decisions.

Download the Guiding Principles

Self-Transformation Reminders

Five quick and easy reminders to keep you on a path to self-transformation when creating or contributing to virtuous cycles of mutual benefit, whether in business or in life.

Download the Reminders

RR&E Development Worksheet

Many organizations use standard descriptions to codify tasks. Koch uses roles, responsibilities and expectations (RR&Es) to uncover each individual employee’s comparative advantages and value creation opportunities.

Download the Worksheet

Good Profit Discussion Starters

Use these seven questions, based on Good Profit key concepts, to challenge and examine existing mental models and generate productive discussion within your working team.

Download the Discussion Starters

5-Day Mental Model Challenge

Take one topic a day for a week and examine how these key concepts from Good Profit can help you get in shape with your business role and your working team. 

Download the Challenge

Good Profit in Action

Stories from readers who were eager to move beyond anecdotes, buzzwords and laundry lists, and learned how to apply Market-Based Management® to create good profit.

Illustration of Billy Sorenson

Harnessing the Light

Billy Sorenson

Founder, Lightfield Energy

Read Story
Illustration of Samantha Rudd

The Vines That Bind

Samantha Rudd

Vintner, Rudd Estate

Read Story
Illustration of Tien Huynh

Margins with a Mission

Tien Huynh

Business Owner, Zeller Automotive Group, Opti-Life & Distinct Ink

Read Story
Illustration of Kathaleena Monds

Learning to Flourish

Kathaleena Monds, Ph.D.

Professor & Founding Director, Center for Educational Opportunity at Albany State University

Read Story
Illustration of Ben Kroeger

Culture of Possibility

Ben Kroeger, CSP

Environment, Health & Safety Manager, Guardian Industries

Read Story
Illustration of Maurice Ferre

Transformative Treatment

Maurice R. Ferré, M.D.

CEO and Chairman, Insightec

Read Story
Illustration of Kathy Walters

Keeping Success Rolling

Kathy Walters

Georgia-Pacific, Group President, Consumer Products Group (retired)

Read Story

Order Good Profit Now

Good Profit has been embraced around the world. Today, it is available in seven languages: English, Chinese, Japanese, Korean, Vietnamese, Romanian and Portuguese, as well as a UK edition. Available now in hardcover, e-book and audiobook from these retailers.

More essential reading by Charles Koch

While Good Profit lays out the Market-Based Management fundamentals, his following two books go further – exploring how to apply these principles both in business and life. Taken together, this series creates a vital, overarching framework for creating mutual benefit in all aspects of life.

Believe in People: Bottom-Up Solutions for a Top-Down World

Stories and lessons to inspire anyone interested in finding better ways to tackle our world’s biggest challenges.

BelieveInPeopleBook.com
Book cover for "Believe in People" by Charles Koch with Brian Hooks

Continually Transforming Koch Industries Through Virtuous Cycles of Mutual Benefit

A deep dive into how the ideas of MBM are integral to the global growth and transformation of Koch Industries.

Download e-Book
Book cover for "Continually Transforming Koch Industries Through Virtuous Cycles of Mutual Benefit" by Charles Koch

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.

William Bennett

National Review

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

Co-Founder and Co-CEO of Whole Foods Market

The ultimate “how to” book on running a successful business. Charles Koch’s approach is extraordinarily thoughtful and comprehensive, reflecting his more than 50 years of experience in growing Koch Industries to the largest private corporation in America. His emphasis on the key role that values play in his leadership and management model is especially important in today’s business environment. A must-read for those who want to take their enterprise to the next level.

Richard B. Myers

General, USAF, Ret., 15th Chairman of the Joint Chiefs of Staff

Here is a clear example of the American dream and how our country benefits when successful entrepreneurs create new jobs 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 profit’ has enabled them to grow their businesses, reward their employees and still have plenty left over to invest in important charitable groups and institutions supporting America’s freedom. It is a worthwhile read!

Charles R. Schwab

Chairman and Founder, Charles Schwab & Co. Inc.

Writing about Charles Koch has become a cottage industry but, until now, there's been little from the man himself. Read his new book, Good Profit, and you can learn directly from him what he thinks and how he has built one of the biggest and most successful businesses in the world.

Michael L. Lomax, Ph. D.

President and CEO of United Negro College Fund

Charles Koch’s new book, Good Profit, is written for two different kinds of readers. The first is the entrepreneur who wants to build up a firm, as Koch did in spectacular fashion. So much so that an investment of $1,000 in the company back in 1960 would be worth $5 million today (if dividends had been reinvested in the firm). I’m not that kind of reader, alas. I’m the second kind, who wants to know how a company that foreswears crony capitalism can thrive, as Koch Industries did.

F.H. Buckley

The American Spectator

In Good Profit, Mr. Koch outlines the methods by which he has built a business that is now worth more than $100 billion and has created a thriving institution — a place where, as the management guru Peter Drucker once wrote, each member is encouraged to reach an ‘intellectual and moral growth beyond a man’s original capacities.’

Joseph Maciariello

The Wall Street Journal

Charles Koch's 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.

Ed Crooks

Financial Times

This book is Charles Koch’s attempt at explaining the principles that he used to take his father’s company from a 1961 valuation of $21 million to one worth $100 billion in 2014. Put another way: Someone who invests $1,000 in Koch Industries in 1960 would now be holding $5 million in wealth. That’s a return 27 times greater than the average investor would have turned on the S&P 500 index.

Phil Elliott

Time Magazine

A must-read for any businessperson or serious student of business. As a transformative leader of Koch Industries, Koch, the author, delivers not just business wisdom but the economic punch of decision making at the margin and Market-Based Management®. The book, like Koch’s management tools, bridges theory and practice masterfully. But the title’s engine says it best: ‘Good profit’ arises from delivering value to customers. And Koch Industries’ spectacular success over the past half century shows that good profit creates great value.

Glenn Hubbard

Russell L. Carson Professor of Finance and Economics, Columbia Business School

Charles Koch headshot

About Charles Koch

Charles Koch is chairman and CEO of Koch Industries, Inc., roles he has held since 1967. Much of KII’s success can be traced to Mr. Koch’s interest in and commitment to scientific and social progress, specifically the development and implementation of the Market-Based Management® framework. With a focus on principles and policies that enable people to improve their lives, he has supported a wide variety of philanthropic initiatives for more than 55 years, founding numerous nonprofit organizations, including Stand Together. Mr. Koch earned three engineering degrees from MIT. He lives in Wichita, Kansas, with his wife, Liz.

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About Koch Industries, Inc.

Based in Wichita, Kansas, Koch Industries, Inc. is one of the largest private companies in the world, with estimated annual revenues as high as $115 billion, according to Forbes. Koch companies are involved in refining and chemicals; forest and consumer products; fertilizers; polymers and fibers; process and pollution control systems; electronics, software and data analytics; minerals; glass; automotive components; ranching; commodity trading; and investments. Koch employs more than 120,000 people worldwide -- about 60,000 in the United States -- with a presence in more than 70 countries. Since 2003, Koch companies have invested nearly $133 billion in growth and improvements.

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Order Good Profit Now

Good Profit has been embraced around the world. Today, it is available in seven languages: English, Chinese, Japanese, Korean, Vietnamese, Romanian and Portuguese, as well as a UK edition. Available now in hardcover, e-book and audiobook from these retailers.