Koch Industries’ unique business philosophy is described in Charles Koch’s book, “The Science of Success, How Market-Based Management Built the World’s Largest Private Company,” published in 2007.

What is behind the success of Koch companies? It is Charles Koch’s unique and transformative management philosophy Market-Based Management®.

Developed by Charles Koch, chairman and chief executive officer of Koch Industries, Inc., MBM® is defined as a philosophy that enables organizations to succeed long term by applying the principles that allow free societies to prosper.

As MBM became the foundation upon which Koch companies grew, the challenge of sharing it internally and externally led to the creation of "The Science of Success."  To learn more, click here.

In the book, Mr. Koch presents the evolution of Koch Industries and the "Science of Human Action" upon which MBM is based. He also provides a systematic view of MBM at work within Koch companies by outlining five dimensions: vision, virtue and talent, knowledge process, decision rights and incentives. 

"The Science of Success" has been translated into Chinese, German, Korean, and Portuguese. The book is available online, and in the U.S. at Barnes & Noble.

Value Creation
Successful companies create value by providing products or services their customers value more highly than available alternatives. They do this while consuming fewer resources, leaving more resources available to satisfy other needs in society. Value creation involves making people’s lives better. It is contributing to prosperity in society.

To read more excerpts from the book, click here.

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