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The Science of Success: How Market-Based Management Built the World's Largest Private Company, by Charles G. Koch
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"Evaluating the success of an individual or company is a lot like judging 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 Pickens
"A 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 behavior." —Richard L. Sharp, Chairman, CarMax
"My 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-Mart
"What accounts for Koch Industries' spectacular success? Charles Koch calls it Market-Based Management: a vision that nurtures personal qualities 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 economics
"In a very thoughtful, creative, and understandable 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 & Co.
"The same exacting thought, rooted in the realities of human nature, that the framers of the U.S. 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.
Product details
Hardcover: 208 pages
Publisher: Wiley; 1 edition (February 26, 2007)
Language: English
ISBN-10: 9780470139882
ISBN-13: 978-0470139882
ASIN: 0470139889
Product Dimensions:
5.8 x 0.6 x 8.8 inches
Shipping Weight: 13.6 ounces (View shipping rates and policies)
Average Customer Review:
4.3 out of 5 stars
190 customer reviews
Amazon Best Sellers Rank:
#52,997 in Books (See Top 100 in Books)
I worked at Koch for 7 years, in the '90s, when Market Based Management was being developed as a concept and talking point. It was exciting to be a part of the practical application of everything from Austrian economics to Greek philosophers. I would consider this book to be required reading for anyone trying to understand how to run a company in a fair and rational way. It's a quick read, but I find myself going back to it to hear the wisdom of it again and again.
I have spent my life in or near the business world and have been in a position to help suffering businesses consider better management methods. Wish I'd read this book years ago. It is no wonder Charles Koch and his family have achieved what they have. As to their detractors, if you haven't read this book or haven't been inside the Koch organization you probably don't have a clue as to what you are talking about. READ IT and profit from Charles Koch's generosity in sharing this with the world. The thoroughness with which they have thought and worked out their management philosophy and methods are amazing. This together with their success is a solid testimony for a free market economy.
Charles Koch provides a thorough breakdown of the management system developed at Koch Industries Inc. His comprehensive understanding of free market economics is instilled in the fundamentals of the company and its drive to produce long-term value. I read the Kindle version, and my main criticism would be that parts were didn't flow very well based on the short sections with a new heading every page or two and frequent asides or quotes inserted in the text. This choppy layout made it more difficult to see the unity of each chapter and grasp the framework of the idea. Overall, I thought MBM is an interesting concept and I would be interested in a more detailed presentation of its application to KII operations.
I had really high hopes for this book, I honestly did. I was expecting a scientific analysis of this business management style but, instead, I have thus far seen just a hazy picture of the author's ideals for society. The book takes on a decidedly boastful tone wherein the author remarks in literally every few paragraphs about the self-attributed meteoric rise of their business, but there are very few details regarding implementation of MBM principles in this book.The author speaks of quantitative analyses and science-based business management, but then provides little or no details on the actual science for the implementation of this style. For example, the author says to hire the right people for the right position - well, of course - but doesn't go much beyond that simple phrase at all to say HOW to do that. He says to incentivize people based on how much value they add to the company but, again, no good details or examples on HOW to do that. The best piece of advice the author has provided thus far is basically "don't get sued."There are charts and graphs which are poorly defined and barely talked about, leaving the reader clueless about how to truly interpret the data therein. The book also has a very reminiscent tone of the author's endeavors in the 60's, 70's and 80's, but, again, not a whole lot else in terms of quantitative content.Admittedly, I'm only 3/4 of the way through the book, but every turn of the page I have been waiting for something groundbreaking, some concrete examples and have thus far gotten few, if any.I gave it an "ok" rating because if you enjoy learning the history of the author's business endeavors, hearing someone boast about their business' 2000% growth every couple paragraphs, or learning of the author's vision for society at large, then it is worth the read. Otherwise, there are probably better business management books out there.
I was captured by the logic and soundness of this book. Or, maybe I was captured by the author's authority in the subject? Either way, what you have here is, as far as I can tell, the keys to play with the big boys. Can anyone refute Koch's skillset in building a large company? If every book I've read were this good, I could have retired by now.Personally, I love his references and holistic application libertarian economics. I just didn't know they apply to business also. Here comes the inflammatory comment: If you want to operate like any government in existence (lousy) then avoid books like these. If you prize freedom, discipline and ethics, this is a special and enlightening read. It's short and sound. Great book all around.
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