“Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.” ― Ralph W. Emerson

"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."

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 business 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 talents, knowledge processes, 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.
Read excerpts from the book, here.







Link: http://www.kochind.com/MBM/science_of_success.aspx

MBM^® requires a culture centered around specific attributes. These attributes set the standards for evaluating policies, practices and conduct, establishing norms of behavior and building the shared values that guide individual actions. The MBM Guiding Principles articulate Koch companies’ rules of just conduct along with shared values and beliefs.

The Guiding Principles are:

Integrity
Conduct all affairs with integrity, for which courage is the foundation.

Compliance
Strive for 10,000% compliance with all laws and regulations, which requires 100% of employees fully complying 100% of the time. Stop, think and ask.

Value Creation
Create long-term value by the economic means for customers, the company and society. Apply MBM to achieve superior results by making better decisions, pursuing safety and environmental excellence, eliminating waste, optimizing and innovating.

Principled Entrepreneurship™
Apply the judgment, responsibility, initiative, economic and critical thinking skills, and sense of urgency necessary to generate the greatest contribution, consistent with the company’s risk philosophy.

Customer Focus
Understand and develop relationships with customers to profitably anticipate and satisfy their needs.

Knowledge
Seek and use the best knowledge and proactively share your knowledge while embracing a challenge process. Develop measures that lead to profitable action.

Change
Anticipate and embrace change. Envision what could be, challenge the status quo and drive creative destruction through experimental discovery.

Humility
Exemplify humility and intellectual honesty. Constantly seek to understand and constructively deal with reality to create value and achieve personal improvement. Hold yourself and others accountable.

Respect
Treat others with honesty, dignity, respect and sensitivity. Appreciate the value of diversity. Encourage and practice teamwork.

Fulfillment
Find fulfillment and meaning in your work by fully developing your capabilities to produce results that create the greatest value.