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

NEW YORK TIMES BESTSELLER • Learn how to apply the principles of Charles Koch’s revolutionary Market-Based Management® system to generate good profit in your organization, company, and life

“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, Whole Foods Market

The technological innovations, extreme politics, civil unrest, cyber attacks, demographic shifts, and global pandemic that have affected all businesses since this book was published have only confirmed Charles Koch’s belief that “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.” Hence, the principles in Good Profit are more important today than ever before.

What exactly does Koch Industries, Inc., do and why is it so remarkably profitable? Koch’s name may not be on your home’s plywood, vehicle’s grille, smartphone’s connectors, or baby’s ultra-absorbent diapers but it makes them all. And Koch’s Market-Based Management® (MBM) system is what drives these innovations and many more.

The core objective of MBM is to generate good profit. Good profit results from products and services that customers vote for freely with their dollars. It results from a bottom-up culture where employees are empowered to act entrepreneurially to discover customers’ preferences and the best ways to improve their lives. Drawing on six decades of interdisciplinary studies, experimental discovery, and practical implementation across Koch businesses worldwide, Charles Koch walks the reader through the five dimensions of MBM to show how to apply its framework in any business, industry, or organization of any size. Readers will learn how to:

• Craft a vision for how to thrive in spite of increasingly rapid disruption and ever-changing consumer values
• Select and retain a workforce possessing both virtue and talent
• Create an environment of knowledge sharing that prizes respectful challenges from everyone at every level
• Award employees with ownership and decision rights based on their comparative advantages and proven contributions, not job title
• Motivate all employees to maximize their contributions by structuring incentives so compensation is limited only by the value they create

A must-read for any leader, entrepreneur, or student, as well as anyone who wants a more civil, fair, and prosperous society, Good Profit is one of the greatest management books of all time.

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.

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