Developed by Koch Industries’ CEO Charles Koch, Market-Based Management® (MBM®) prepares individuals to deal successfully with the challenges of growth and change while fostering a healthy, growing organisation. By applying the same shared values that unleash prosperity in free societies – such as value creation, integrity, responsibility, free speech and tolerance – we encourage each other to take initiative and to challenge.
The theory of MBM is rooted in the Science of Human Action and is defined by five dimensions:
Vision: Determining where and how the organisation can create the greatest long-term value
Virtue and Talents: Helping ensure that people with the right values, skills and capabilities are hired, retained and developed
Knowledge Processes: Creating, acquiring, sharing and applying relevant knowledge, and measuring and tracking profitability
Decision Rights: Ensuring the right people are in the right roles with the right authority to make decisions and holding them accountable
Incentives: Rewarding people according to the value they create for the organisation
When these dimensions are applied in an integrated, mutually reinforcing manner, they create continuous transformation and positive growth.
The MBM® philosophy enables employees to constantly search for opportunities to improve and grow. Rooted in guiding principles such as integrity, humility and respect, the MBM® framework attempts to bring some of the workings of the free market inside the company—building on the belief that freedom is a powerful engine for generating well-being, discovery and growth.
In his latest book, “Good Profit,” Charles Koch shows managers, entrepreneurs, leaders, students, innovators, and employees of all kinds — and in any field — how to apply the principles of his revolutionary Market-Based Management® system to generate good profit in their organisations, companies and lives. To learn more about this book, please click here, and to learn more about MBM® philosophy, click here.
Have the courage to always act with integrity.
2. STEWARDSHIP &
Act with proper regard for the rights of others. Put
safety first. Drive environmental excellence and comply
with all laws and regulations. Stop, think and ask.
Practice a philosophy of mutual benefit. Create superior
value for the company by doing so for our customers
and society. Help make Koch the preferred partner of
customers, employees, suppliers, communities and
other important constituencies.
Transform yourself and the company. Seek, develop
and utilise the visions, strategies, methods and products
that will enable us to create the greatest value.
Acquire the best knowledge from any and all sources
that will enable you to improve your performance.
Share your knowledge proactively. Provide and
solicit challenge consistently and respectfully.
Be humble, intellectually honest and deal with reality
constructively. Develop an accurate sense of self-worth
based on your strengths, limitations and contributions.
Hold yourself and others accountable to these standards.
Treat everyone with honesty, dignity, respect
and sensitivity. Embrace different perspectives,
experiences, aptitudes, knowledge and skills in
order to leverage the power of diversity.
Be a lifelong learner and realise your potential, which
is essential for fulfillment. As you become increasingly
self-actualised you will better deal with reality, face
the unknown, creatively solve problems and help
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