The “science of human action” and “market-based management” (MBM) form the core
ideas of the libertarian business philosophy and the successful commercial operating
principles of Charles G. Koch, chairman and CEO of Koch Industries Inc. (KII).
Following these principles, Koch has enjoyed astounding success: A $1,000 investment
in KII in 1960 would now be worth $2 million (with a reinvestment of dividends). During
most of this period, Koch himself planned KII’s strategy and ran the company. Here, with
a few jargon pitfalls, he details his business methods and operating practices. Koch is
known for his heavy financial support of conservative political causes and candidates,
but this is not a political book. It is, in fact, more a work of business philosophy than a
hands-on manual for Koch’s MBM system, which he describes as an approach and attitude based on a selection of “mental models” and not as a linear path.
I recommend Koch’s thoughtful exposition to all 80,000 KII employees and to business executives who want some clues about emulating KII’s success.