E–pub The Science of Success How Market Based Management Built the World's Largest Private Company
The second part of the book looks ust like Think And Grow Rich by Napoleon HillAs of the first part it s the typical Charles Koch view of business A fast read but a good one It is easy to understand and filled with helpful principles I m looking forward to learning about it What they do at KII works and I have seen how Charles Koch s Market Based Management transfers over to the non profit It really creates an exceptional environment to work in This book was interesting and clearly had good ideas But like most business books I found it maddeningly vague Maybe it s the lawyer in me that wants careful definitions of everything even when they are unwise or impossible But I still feel like I am missing something when I read most business type books This is no exception That said his holistic approach to business largely makes sense and has clearly worked well Upon writing this review Koch Industries is actually the US s second largest private company behind Cargill Like Cargill most people have no idea what Charles G Koch s Koch Industries does However Koch Industries is perhaps the world s most maligned private company whether that s entirely Their Convenient Amish Marriage (Pinecraft Homecomings justified or wholly not depends on who you ask Regardless it is living breathing evidence of the successful business philosophy detailed within The Science of Success How Market Based Management Built the World s Largest Private Company SOSFor full disclosure I actually read this book before my internship with Koch Industries began it was handed out for free during an intern welcome weekend and my copy has been signed by Mr Koch within Koch Charles Koch will always be referred to as Mr Koch Not only did I read this book thoroughly for the purpose of understanding the corporate culture that I would beoining that summer of 2013 I listened to Mr Koch himself speak on SOS s topics candidly without notes in personThe book introduces the different dimensions of Market Based Management which is Koch Industries scientific method to running a successful business I strongly remember certain themes Have a vision for your firm align the incentives of each and every employee and know who has the right to make what decision Creative destruction was also of interestWhat Science of Success really introduces is the argon of business Gone are enthalpy constants drill bit rates of penetration and other engineering terms I grew to hate anyway However the same engineering stereotype problem solving approach characterized by Mr Koch s MIT engineering education permeates SOS along with strong doses of learned humanities and economics If college students are exceptional at name dropping the places they studied abroad Mr Koch is borderline divine at uoting literary works which showed during his speech and in SOS Eventually I learned the phrases create value and other business lingo are not uniue to Koch Industries though mentioned a plethora of times in SOS Every firm has their own company culture but for a company with tens of thousands of employees you d be hard pressed to find a company culture as codified as Koch Industries it is laid out chapter by chapter in SOS Some parts of the book are challenging to synthesize Also it s doubtful in my mind that Mr Koch was as deliberate in decision making throughout the entire history of Koch Industries as SOS wishes he was That being said SOS is a synthesis of business philosophy not necessarily a perfect account of business success It reads as an informative text too with some story elements and can be slow at times All in all this book is excellent for people who want to understand what drives a business and at a intrinsic level what drives people But its academic approach and subject matter and also the wary eye doubters keep on Mr Koch and his capital heavy ventures refining extractive minerals fertilizer pulp and paper may cause one to pass on. Praise for THE SCIENCE OF SUCCESS Evaluating the success of an individual or company is a lot like udging a trapper by his pelts Charles Koch has a lot of pelts He has built Koch Industries into the world's largest privately held company and this book is an insider's guide to how he did it Koch has studied how markets work for decades and his commitment to pass that knowledge on will inspire entrepreneurs for generations to come T Boone PickensA must read for entrepreneurs and corporate executives that is also applicable to the wider world MBM is an invaluable tool for engendering excellence for all groups from families to nonprofit entities Government leaders could avoid policy failures by heeding the science of human beha.
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E–pub The Science of Success How Market Based Management Built the World's Largest Private Company
Any beueathed to him into the second largest privately held concern in the world What is most refreshing about this book is its candid admission of his own mistakes missteps and lessons learned Too many business bios adapt the Donald Trump style swagger the Here s How I Triumphed in the face of incredible odds and became a titan What Charles Koch does in this book is chronicle his business career how he built his company who he trusted how he motivated his employees In the back section of the book he provides an appendix of the businesses that Koch is involved in but an even longer summary of the businesses that Koch has exited He continually harkens back to examples which highlight the simple principles of integrity honesty and fairness While many out there today may not care for Charles Koch s politics and convictions he deserves the right to vote his conscience and expound his philosophy alongside other philanthropists from across the aisle like George Soros But again read this book only if you are willing to ignore politics and can focus on business and personal advice A 150 page pamphlet to bid current Koch employees to keep shares in Koch Some really vague business advice on continuous improvement The one thing I took away is that large businesses spanning many thick verticals are interesting beastsI agree a lot with this review Interesting obviously coming from a highly successful and thoughtful man If you are looking for evidence of a crazy man that doesn t share the values of most Americans trying to subvert our form of government through a covert takeover of the republican party there are other books that cover that topic Why can t he be bothNot enough meet here to be able to actually draw that many useful things from a management perspective A few weeks ago I had the opportunity to do some consulting for one of the Koch Industries companies Invista I taught a course at its Wilmington DE facility and then again at its headuarters in Wichita KS I was struck by the incredible ways in which the employees treated me and each other While in Wichita I learned a lot about Koch Industries and its business philosophy I happened to visit the company story while in Wichita and I saw that the CEO had written this book I knew that I had to read it to learn about how he built the company and how he inspires his employees What I read was nothing short of astounding Koch Industries should be a role model for other companiesThis book starts by providing a bit of history about how Koch Industries has become the largest privately held company in the United States in terms of revenue It s no surprise that this was achieved through the implementation of the company s Market Based Management MBM philosophy The book goes on to describe MBM in great detail Personally I had been exposed to only one aspect of MBM during my time at Invista the Guiding Principles There are ten Guiding Principles in MBM and I was introduced to them because they are printed on all of the coffee cups in the corporate office in Wichita what a great idea The ten Guiding Principles are 1 Integrity 2 Compliance 3 Value Creation 4 Principled Entrepreneurship 5 Customer Focus 6 Knowledge 7 Change 8 Humility a personal favorite 9 Respect and 10 Fulfillment These Guiding Principles are described in the book yet they make up only one part of the overall MBM philosophy The other aspects of MBM include Vision Virtue and Talents Knowledge Processes Decision Rights and Incentives Each aspect of MBM is described in this book and examples are provided throughout While I wouldn t say that this book is prescriptive ie it doesn t tell you how to run a business I would say that it provides a very valuable set of tools that can be used to improve any business If you like business books then this book needs to be read and freuently referenced You will really enjoy Standable way Charles Koch explains how he has used the science of human behavior to create a culture that has produced one of the world's largest and most successful private companies A must read for anyone interested in creating value William B Harrison Jr Former Chairman and CEO JPMorgan Chase CoThe same exacting thought rooted in the realities of human nature that the framers of the US Constitution put into building a nation of entrepreneurs Charles Koch has framed to build an enduring company of entrepreneurs a company larger than Microsoft Dell HP and other giants Every entrepreneur should study this book Verne Harnish founder Young Entrepreneurs' Organization author of Mastering the Rockefeller Habits CEO Gazelles Inc.
This book I worked for a company under Koch ownership and this was my first exposure to the science behind the management and culture This book is truly what the Koch companies are about and the key ingredient is getting the right people in the right rolesthe rest truly does take care of itself Culture mindset and ongoing leadership development are key ingredients Being open to personal transformation is also a key ingredient I think this book would go well with Good to Great in terms of how to think about the right people and leadership levels I do recommend this book and although it will not tell you how to do this in your own companies it will give you a lot to think about in terms of key factors that have and continue to make Koch companies highly successful After reading this look up the human action model on Google and read about the three ingredients for change this could help you begin transformation within your own function or company I borrowed this book from a friend because I have been looking into many private companies Koch Industries is the largest private company in the worldFirst of all I really enjoy books that seem to be working with general wisdom applicable to any sector of society or society at large I have enjoyed the Jim Collins books for that reason but I really liked Koch s idea of studying history economics philosophy and to develop his ideas of building a strong company Actually Michael Polanyi the philosopherchemist he mentions a number of times is an thinker that I have encountered a number of times in reading theology and missialogy as well as some of the Chicago economics The basic solution of maximizing long term profitability by creating real value in society what he calls principled entrepreneurship is the kind of sound thinking of any great company He went on to talk about foundational societal building blocks that are and difficult to find and ensure like virtue trust humility openness to challenge etc While these are what in the long term carry individuals and corporations through to real value they do not always bring immediate success I thought the most interesting chapters and the ones I think CD Group has really gone a long way to try and build were on Decision Rights Roles Responsibilities Expectations and the Knowledge Process The idea of really building ownership into the employees so they always see that within their role there is set responsibilities and expectations true ownership where they can achieve real progress and contribute He says that RRE within the company should be like property rights within society Throughout the book he tried to make the point that all parties bring uniue abilities that can contribute to overall profit if they are willing to work together in humility in the free markets creative destruction The idea of seeing the company as responsible for piecing together a giant igsaw puzzle all working together in a decentralized way within site of one another was very interesting as wellThat said the book was so simple and matter of fact that it was hard to believe that Koch Industries has achieved this among their 80000 employees It made me want to read articles about them to see how they fare on putting all this to work throughout the organization Disclosure I have done business with Koch Industries for over 30 years The copy of this book was given to me by a Koch employee It is the only publication by Charles Koch I have ever readNote I have since read another Charles Koch book Good Profit which I have reviewed as wellForget all the vituperative broadsides against the Koch brothers the accusations of their funding the Tea Party the cover story on Bloomberg Markets Charles Koch is a genius when it comes to business He had to have something going for him to plough through undergraduate and post graduate courses at MIT and to build the Comp. Vior Richard L Sharp Chairman CarMaxMy father Sam Walton stressed the importance of fundamental principles such as humility integrity respect and creating value that are the foundation for success No one makes a better case for these principles than Charles Koch Rob Walton Chairman Wal MartWhat accounts for Koch Industries' spectacular success Charles Koch calls it Market Based Management a vision that nurtures personal ualities of humility and integrity that build trust and the confidence to enhance future success through learning from failure and a culture of thinking in terms of opportunity cost and comparative advantage for all employees Vernon Smith 2002 Nobel laureate in economicsIn a very thoughtful creative and under.