Billionaires Charles Koch and his brother have been vilified by leftists, and especially by Democrats, for their financial support of conservative organizations and the Republican Party. Since they rarely defend themselves against these brutal attacks, I decided to find out more about what makes the Koch brothers tick.
Accordingly, I’m reading a new book entitled Good Profit – How Creating Value for Others Built One of the World’s Most Successful Companies by Charles G Koch, the Chairman and CEO of Koch Industries, Inc. I was motivated to purchase his new book after seeing him interviewed on TV. He spoke about MBM – “market-based management” – as the driving philosophy underpinning the success of Koch Industries -– a $100 billion company.
For as long as I can remember, I have preached that the primary objective of an enterprise should be to meet the needs, wants and expectations of customers, clients, suppliers, employees, communities, etc. -– at a profit sufficient to sustain and grow these ongoing services.
Too many businesses say their primary objective is profit, which, of course, is a necessity for the survival of any enterprise. However, profit (or surplus in “non-profit”) should be a reward for serving the needs, wants and expectations of their stakeholders in a responsible and productive manner.
So when I heard Koch talk about MBM -– market-based management -– I decided I needed to read more about it – to determine if my long-held philosophy was correct. So far the time and effort has been worthwhile, informative and compatible.
I am convinced the proper implementation of our market-based philosophy has been the primary source of our success. But past performance does not guarantee future results. To continue to achieve superior performance and good profit, we must continually improve our understanding and application of MBM.
Just as a market economy continually experiments with better and better ways to provide people with what they value, yet never reaches stasis, so MBM is a never-ending process of learning and improvement.
So if you are struggling to succeed and/or to improve -– put Good Profit on your reading list. And let me know what you think about Koch’s ideas.
In God we must trust . . . but we must always do our part – to secure and promote the truth and a better way – to protect our freedom and interests – and to defend our free-market system and the Judeo-Christian American-Way.