(Good Profit) [PDF] ä Charles G. Koch

  • Paperback
  • 288
  • Good Profit
  • Charles G. Koch
  • en
  • 14 June 2018
  • 9780349416069

Charles G. Koch ☆ 9 SUMMARY

SUMMARY Good Profit ✓ E-book, or Kindle E-pub Cal implementation across Koch companies and their 100000 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 societyWhile you won't find the Koch Industries name on your home’s stain resi Great book by one of America s foremost billionaires People will see through the Left s lies and realize MrKoch is a decent human being Although a bit terse and technical at times Good Profit is a great read on how entrepreneurial minded people can learn to cultivate and aspire to earn good profit

READ & DOWNLOAD Good ProfitGood Profit

SUMMARY Good Profit ✓ E-book, or Kindle E-pub THE UNIUE MANAGEMENT SYSTEM FROM A LEGENDARY CEOIn 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 110 billion global corporation – one of the largest private companies in the world today with value growth exceeding that of the SP 500 by 30 foldSo how did this MIT engineer manage to increase Koch Industries’ value by 5000 times over the last five decades Through his uniue five dimensional management process and system called Market Based Management Based on five decades of cross disciplinary studies experimental discovery and practi Holy crap this is a bad book I like the Koch brothers I agree with them politically both philosophically and in their desire to actually punch back at liberals and change the status uo rather than simply feeding money into the rathole of establishment politicians and tasseled loafer conservative consultants Their demonization by the Left is emblematic of much that is wrong with America But this is a business book not a book on politics And holy crap this is a bad bookWhat I thought this book was going to be was an exposition of how Koch Industries got where it is today Any business that grows from very little to very much has to slash its way to the top dealing with innumerable existential threats internal and external Over decades scores of highly interesting and highly informative stories must accumulate This the inside story of Koch Industries is what I thought I was going to getWhat I got instead was 250 pages of pabulum in which incoherent ramblings and gross generalizations are used in the service of hindsight confirmation Every aspect of Koch s business discussed in in the book is addressed as such a high level of generality as to leave the reader understanding nothing at all about Koch Industries or how it got where it is todayApparently Charles Koch the author his brother David is referenced but not involved in the book believes that Koch Industries has a uniue business management system It is called Market Based Management or MBM I actually had to go back and look that up it is so un memorable And bizarrely in several places it appears in the book it has a registered trademark symbol by it which is not reuired under trademark law and adds nothing except pretension Koch attributes Koch Industries success to that system But every aspect of MBM is trite obvious and irrelevant both to the success of Koch Industries and to running any businessCharles Koch has fallen into a false syllogism Premise 1 Koch Industries is very successful Premise 2 Koch Industries uses MBM to guide its actions Conclusion MBM is responsible for the success of Koch Industries This is on its face a post hoc ergo propter hoc error In fact MBM is dumb and could not actually be responsible for any successThe book contains endless statements like Koch s reality grounded MBM mental models customer focus and innovation have made us one of the largest and most successful private companies generating exceptional long term performance These tiresome statements alternate with philosophical nods to Schumpeter s creative destruction while ignoring it is not Pareto optimal claiming for example that a factory girl who loses her job will herself have a higher standard of living as a result which is self evidently false Then there are odd claims such as that MBM is a free market model directly analogous to a sovereign country with a free market But nowhere is the actual success of Koch Industries shown to derive from or be related in any concrete way to these philosophical positionsAnyway as to the organization and substance of the book The first third of the book is a brief mildly interesting but neutered recitation of the history of Koch Industries In this telling Fred Koch started a successful oil business in the 1960s his sons expanded into related business areas Then they bought some big companies like Georgia Pacific and Molex Now they re very big The end so far The second two thirds is about MBMIn all of this there is lots of rambling talk such as how virtuous cycles lead to Koch spotting new opportunities to deliver value to our customers There is talk about how instead of grand plans Koch has a practice of exiting businesses with limited potential for us and focusing on ones with greater potential None of this is wrong but it s obvious as advice and none of it tells us how Koch decided to make acuisitions what obstacles they encountered how they overcame those obstacles etc No instead this two bit philosophy instead magically leads to mostly good choices good results and good profit for Koch ie profit generated without government handoutsMBM itself is an incoherent five part system of Vision Virtue And Talents Knowledge Processes Decision Rights and Incentives As far as Vision did you know that to succeed in the long term a business must innovate and improve at least as fast as its most effective competitor Yes so did I On the other hand Koch s Vision is different from most because it s focused on value creation and people Ummmm sure Whatever Charles Virtues And Talents are apparently synonymous with Koch s MBM Guiding Principles which are ten including such exciting and original gems as Integrity Value Creation Customer Focus and Change Also it is apparently important that employees have talents and did you know that some employees have talents than others Among other startling conclusions feedback should be designed to actually help employees improve their performance In other MBM pearls of wisdom Knowledge Processes need to be developed to allow measurements because apparently everyone else but Koch uses haruspices And Decision Rights must be allocated to allow good decisions while of course avoiding overconfidence bad framing and anchoring Finally Incentives are important and unlike everyone else Koch Industries attempts to execute incentives not by random guessing but by evaluating the value created by the employeeNone of this is wrong All of it can be found in an undergraduate level business class None of it is remotely informative to actually running a business much less growing a business to a giant size It is worthlessThe reality is that building a business is a Hobbesian gutter struggle where the key element is simply getting things done and driving forward forward always forward adapting overcoming and improvising Nothing in MBM would be helpful to a real businessperson Anything true in it is subsumed in what a successful businessperson is already doing I still don t know what the real personality of Koch Industries is I still don t have the slightest idea why Koch Industries has been successful I suspect it s because the Kochs got handed an excellent core business struggled in ways that are not revealed in this book got lucky in some things and here they are today But this book says nothing about the real story of Koch Industries It is a waste of time

CHARACTERS à E-book, or Kindle E-pub ☆ Charles G. Koch

SUMMARY Good Profit ✓ E-book, or Kindle E-pub Stant carpet your baby’s comfortable but absorbent diapers  your stretch denim jeans or your television with a better clarity screen MBM™ drove these innovations and many   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 reader 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 Should be reuired reading for anyone going into business or management Even if you don t end up agreeing with Koch s approach system he makes elouent points that every business owner should at least consider