Good Profit
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| Author | Charles G. Koch |
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| Language | English |
| Genre | Management |
| Publisher | Crown Publishing Group; Piatkus |
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Publication date
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October 13, 2015 |
| Pages | 288 |
| ISBN | |
Good Profit: How Creating Value for Others Built One of the World's Most Successful Companies is a 2015 book by Charles G. Koch. It was published in the United States by Crown Business, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC. It was published in the United Kingdom by Piatkus.
It is a follow-up to a 2007 book by Koch called The Science of Success.
In the book, Koch explains the business strategy behind the remarkable success of his family-owned firm, Koch Industries, which is the second largest privately-owned company in the United States. Koch is the firm's co-owner, CEO, and chairman of the board.
This strategy, or “management framework,” is called “Market-Based Management,” or “MBM.” Koch says that his book is meant for all business readers who desire to move beyond “anecdotes, buzzwords, and laundry lists” to apply MBM methods to generate profit for themselves, their business, and to improve society as a whole.
In explaining MBM, Koch writes that it involves analyzing “business through a win-win mind-set.” This strategy, he maintains, has enabled the firm to deal with dramatic geopolitical, economic, and technological changes, and at the same time to earn what he describes as “good profits.” By this, he means profits that result from treating customers with respect and placing their values first. By contrast, “bad profit” involves “disrespecting customers by making them subsidize our business with their tax dollars and higher prices, siphoning away the good profit other companies could have earned.”
The book argues, then, for a free market, liberated from the distortions of corporate welfare. Koch calls for the elimination of government “distortions,” such as ethanol mandates and import tariffs. Although Koch Industries profits “short term from these market distortions,” states Koch, they “don't lead to good profit” and thus “leave virtually everyone worse off long term, including us.”
Koch explains that he has willingly shared MBM principles with other firms and organizations, since he is confident that the success of others will not diminish his own. “On the contrary, MBM is win-win” Koch has stated, revealing his view that there are no zero-sum scenarios.
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