Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies
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THE REVOLUTIONARY MANAGEMENT SYSTEM BEHIND ONE OF THE MOST SUCCESSFUL COMPANIES OF OUR TIME
In 1961, Charles Koch joined his father’s Wichita-based company, then valued at $21 million. Six years later, he was once named chairman of the board and CEO of Koch Industries, Inc. These days, Koch Industries’ estimated worth is $100 billion -- making it one of the crucial largest private companies on this planet. Koch exceeds the S&P 500’s five-decade growth by 27-fold and plans to double its value on average each and every six years.
What exactly does this company do and why is it so remarkably profitable? Koch’s name is probably not in your stain-resistant carpet, stretch denim jeans, the connectors on your smart phone, or your baby’s ultra-absorbent diapers but it surely makes them all. And Koch’s Market-Based Management® system is what drives these innovations and plenty of more.
In response to five decades of interdisciplinary studies, experimental discovery, and practical implementation across Koch businesses around the globe, the core objective of MBM is to generate good profit. Good profit results from services and products that customers vote for freely with their dollars, products that support people’s lives. It results from a culture where employees are empowered to act entrepreneurially to find customers’ preferences and the most productive how one can satisfy them. Good profit is what follows when long-term value is created for customers, employees, shareholders, and society.
Here, drawing on revealing, honest, and in the past untold stories from his nearly six decades in business, Koch walks the reader in the course of the five dimensions of MBM to turn learn how to apply its framework to generate more good profit in any business, industry, or organization of any size. Readers will discover ways to:
· Craft a vision for learn how to thrive despite increasingly more rapid disruption
· Make a selection and retain a body of workers possessing both virtue and talent
· Create an environment of knowledge sharing that prizes respectful challenges from everyone at each and every level
· Award employees with ownership and decision rights In response to their proven contributions, not job title
· Motivate all employees to maximise their contributions by structuring incentives so compensation is limited only by the value they create
A should-read for any leader, entrepreneur, or student, in addition to any individual who wants a more civil, fair, and prosperous society, Good Profit is destined to rank as one of the crucial greatest management books of all time.
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