Good Profit

How Creating Value for Others Built One of the World's Most Successful Companies

By: Charles G. Koch

Narrated by: Paul Michael, Charles G. Koch

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)

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!

People still matter

In a time of expanding innovation and AI we still need to understand people matter. People are responsible for the innovation we have achieved. Some day this could change as AI becomes more advanced but the foundation of all successful businesses is people.

super insightful for all members of an org.

This book should be in every CEO "must read" list. MBM is an innovative concept

Surprisingly insightful

I was not sure what to expect, which is a great way to go into any book. I found I learned a great deal about what works in Koch industries, but more than that I learned a lot about my own experiences outside of Koch industries in other fortune 500 companies and how they could have been different under the mbm model.

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.

Everyone in business should read this

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

Very good read

made me think about how I handle myself at work. what I can do to make changes

Conceptual change

If you're looking for a 12 step process for increasing profits, this book is not it. If you're looking for new concepts and ideas that will help you shape up into more profits then you will appreciate this book. I really enjoyed the family history that he provides as well as I enjoy classic rags to riches stories of immigrants that came to America with a dream.

Outstanding!!!!

This book was recommended to me by a dear business friend. There are so many fantastic insights inside, many I have felt instinctively but never articulated them like Charles Koch. Then there are many other principles in the boom that I had never considered that have forever changed my thinking in life and business. I wish nothing but continued success in abundance to the Koch family and it’s many generations ahead. Sincerely Justin Byrd

MBM

it is like the business Bible I love the book made me have a whole new outlook I am a new Georgia-Pacific employee and I have never met a Management group that was more in line with the employees