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Good Profit: How Creating Value for Others Built One of the World's Most Successful Companies

2017-05-21 
THE REVOLUTIONARY MANAGEMENT SYSTEM BEHIND ONE OF THE MOST SUCCESSFUL COMPANIES OF OUR TIMEIn 1961,
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Good Profit: How Creating Value for Others Built One of the World's Most Successful Companies 去商家看看

Good Profit: How Creating Value for Others Built One of the World's Most Successful Companies

THE REVOLUTIONARY MANAGEMENT SYSTEM BEHIND ONE OF THE MOST SUCCESSFUL COMPANIES OF OUR TIME
 
In 1961, Charles Koch joined his father’s Wichita-based company, then valued at $21 million. Six years later, he was named chairman of the board and CEO of Koch Industries, Inc. Today, Koch Industries’ estimated worth is $100 billion -- making it one of the largest private companies in the world. Koch exceeds the S&P 500’s five-decade growth by 27-fold and plans to double its value on average every six years.
What exactly does this company do and why is it so remarkably profitable? Koch’s name may not be on your stain-resistant carpet, stretch denim jeans, the connectors in your smart phone, or your baby’s ultra-absorbent diapers but it makes them all. And Koch’s Market-Based Management® system is what drives these innovations and many more. 
Based on five decades of interdisciplinary studies, experimental discovery, and practical implementation across Koch businesses worldwide, the core objective of MBM is to generate good profit. Good profit results from products and services that customers vote for freely with their dollars, products that improve people’s lives.  It results from a culture where employees are empowered to act entrepreneurially to discover customers’ preferences and the best ways to satisfy them. Good profit is what follows when long-term value is created for customers, employees, shareholders, and society.
Here, drawing on revealing, honest, and previously untold stories from his nearly six decades in business, Koch walks the reader through the five dimensions of MBM to show how to apply its framework to generate more good profit in any business, industry, or organization of any size.  Readers will learn how to: 
·         Craft a vision for how to thrive in spite of increasingly rapid disruption
·         Select and retain a workforce possessing both virtue and talent
·         Create an environment of knowledge sharing that prizes respectful challenges from everyone at every level
·         Award employees with ownership and decision rights based on their proven contributions, not job title
·         Motivate all employees to maximize their contributions by structuring incentives so compensation is limited only by the value they create
 
A must-read for any leader, entrepreneur, or student, as well as anyone who wants a more civil, fair, and prosperous society, Good Profit is destined to rank as one of the greatest management books of all time.

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"Charles Koch is right, there is a difference between Good Profit and bad profit. And this book helps show you the way to good profit – whether you work for an international supermarket chain, a medium-sized regional business, or your own start-up.”
- John Mackey, Co-Founder and Co-CEO Whole Foods Market
 

Charles Koch’s Good Profit is a must read for any businessperson or serious student of business.  As a transformative leader of Koch Industries, Koch the author delivers not just business wisdom but the economic punch of decision-making at the margin and Market-Based Management.  The book, like Koch’s management tools, bridges theory and practice masterfully.  But the title’s engine says it best: ‘Good profit’ arises from delivering value to customers.  And Koch Industries’ spectacular success over the past half century shows that good profit creates great value.
 - Glenn Hubbard, Dean and Russell L. Carson Professor of Finance and Economics, Columbia Business School

“The ultimate “how to” book on running a successful business.  Charles Koch’s approach is extraordinarily thoughtful and comprehensive, reflecting his more thasn 50 years of experience in growing Koch Industries to the second largest private corporation in America.  His emphasis on the key role that values play in his leadership and management model is especially important in today’s business environment.  A must read for those who want to take their enterprise to the next level.”
-- Richard B. Myers, General, USAF, Ret., 15th Chairman of the Joint Chiefs of Staff
 
“Charles Koch is a genuine patriot, and his lifelong mission is to make America as strong and free as she can be.  He believes the principles of economic opportunity that have guided America are worth protecting.  This book will teach us how."   -
-(Papa) John Schnatter, CEO Papa John’s Pizza
 
  
“Good Profit is an exploration into the mind and philosophy of one of America’s most extraordinary businessmen.  Charles Koch explains – through example, anecdote, and impressive analysis – how Market-Based Management has enabled Koch Industries to create real, sustainable value for consumers and businesses alike.  You’ll be pleased by his openness.  He’s as candid about his failures as he is his successes, and willing to expose both in the interest of the greater good. “
-- Leslie Rudd, Entrepreneur, Winery Owner, former owner Dean & DeLuca

"Writing about Charles Koch has become a cottage industry but, until now, there's been little from the man himself.  Read his new book, Good Profit, and you can learn directly from him what he thinks and how he has built one of the biggest and most successful businesses in the world."    -- Michael L. Lomax, Ph.D. President and CEO, United Negro College Fund (UNCF)

  
“Here is a clear example of the American dream and how our country benefits when successful entrepreneurs create new jobs (and more taxes for government services) while providing the golden egg for philanthropic efforts.  The real story behind this book is not just Charles Koch’s secret to success – it is the remarkable path he and his brother took in becoming two of America’s most generous philanthropists.  Their recipe for creating “good profits” has enabled them to grow their businesses, reward their employees and still have plenty left over to invest in the nation’s most important charitable groups and institutions supporting America’s freedom.  It is a worthwhile read!”
--Charles R. Schwab
 

作者简介

Charles G. Koch is chairman of the board and CEO of Koch Industries, Inc., a position he has held since 1967. He is renowned for building Koch Industries into the second-largest private company in the nation -- currently valued at $100 billion-- making him the fourth wealthiest man in America, according to Forbes.

           Wichita, Kansas-based Koch Industries, Inc. began as Wood River Oil and Refining Co. in 1940. Koch employs more than 100,000 people in about 60 countries worldwide, with 60,000 of those in the United States. Since January 2009, Koch has earned more than 1,000 awards for safety, environmental excellence, community stewardship, innovation, and customer service.
 

网友对Good Profit: How Creating Value for Others Built One of the World's Most Successful Companies的评论

缺少页数 且内容有多处单词不清,模糊

Overall the book is well written and easy to read and includes a personal side of Charles Koch not seen before-like the 153 death threats he got in 2014. The book discusses how Koch has grown tremendously since the 1960's (Charles didn't simply inherit the company as some might say). At 79 Koch still puts in 9 hour work days. The company has grown so much by reinvesting 90% of their earnings back into the company. What is interesting is how Koch Industries despite having 100,000 employees doesn't appear to be bureaucratic and individuals are always asked to challenge and consider continuous improvement which sometimes never occurs at even Fortune 500 companies.

Overall the book is a mix of economics, a business profile, behavioral finance, philosophy, and good story telling of business failures. What I enjoyed the most Charles Koch is honest about his failures (there are plenty too). At one time Koch believed the company would go bankrupt in the 1970s. Koch tries to apply Market Based Management to every day examples (including the NFL and even how much time he should spend working editing grammar of the book he wrote). Case studies at the end of the book are interesting. Anecdotes of Koch over the long company history are sprinkled throughout the book. For instance the company got rid of insurance programs and mainly self insures. Only downside of book is wished it had more of the personal side. The book is really a great book for anyone who wants to try to live their life to their maximum potential.

"Good Profit" is Charles Koch's third book outlining and updating his concept of "Market-Based Management" (following "Market-Based Management" and "The Science of Success").

It has two main shortcomings: First, the tone of the book is mostly dry and straightforward, which obscures the fact that the content is actually quite compelling. The author is an engineer by training and quite clearly a man deeply committed to rationality, so an all-business tone is probably the only way he could have written it in an authentic voice.

Second, the framework of Koch's "Market-Based Management" relies heavily on uncommon mental models and operations; in naming these, and referring often to the names, the text requires that the reader absorb and accept them quickly. It's probably a necessary evil, but the repeated capitalization of concepts like "Principled Entrepreneurship" can seem a bit heavy-handed.

For these reasons, the book's predecessor ("The Science of Success") actually feels like an easier read; however, since Koch's management philosophy remains a work in progress, it probably behooves the reader to study the latest book.

Shortcomings notwithstanding, Koch's approach is philosophically satisfying (think of it as the rigorous application of a free-market political philosophy to the operation of a business) and backed by results (it would be naive to dismiss the success of Koch Industries or to chalk up its long-running success to chance, luck, or some fluke). It contains a considerable volume of useful and original insights as well as a surprising amount of tactical advice that can be implemented across the spectrum of businesses.

Serious students of business and management should read it without delay.

This is one of two books I highly recommend to anyone who wants to build and maintain a team of high-performing individuals.

Before I give info about the book, I'll lead up to it by explaining why a lifelong contractor decided to leave the profession of contracting to join the company of the man who wrote this book.

I'd been working as a very successful independent contractor for well over 20 years, not wanting to get sucked into company politics. With contracts ranging from 6 months to about a year, I've seen a fair share of different management styles. In each case, whenever a given project ended, and I felt I was no longer contributing to the team in a valuable manner, I'd pack up and find a new client. Or I'd find a new project at the same client site.

In most cases, I was offered a salaried position with the client, or offered a position to maintain my work - even at the same rate of pay used to create the work. Neither was interesting to me because 1) the company politics collided with my personal viewpoints of efficient and practical ways of working, and 2) paying a high-rate contractor to maintain well-written and well-designed solutions was a waste of resources.

So when I stumbled across this company called Koch, and got few months' insight on how and why they manage employees as they so, I was really really intrigued.

Create value by acting as entrepreneurs? Treating colleagues as clients - end expecting to be treated as clients ourselves? Offering challenging points of view not because it's simply tolerated, but because we are EXPECTED to do so? Working on your strengths more than building up your weaknesses to further one's career? Teaching one's industry competitors how to make their internal management teams more like the free market? Encouraging each of us to be confident enough to earn decision rights, yet humble enough to accept feedback for those decisions... even when the one receiving correction is the owner of the company?

It's all part of the company culture, and documented on this book. The first one, The Science Of Success, is the earlier version of this. Actually, these two compliment each other as their audiences are different.

I saw the author's 60 Minutes interview and got interested in a company that I knew nothing about except what the media publishes - so I bought the book. At the time I was working for one of the world's largest conglomerates, and was accustomed to self-serving management philosophies and flavor-of-the-month feel good HR junk, so I wasn't expecting much.

After reading it, I thought "if he really runs his company this way, it's something special." A few months later, I had a new job with one of his companies, and they really DO walk the walk - and I can tell you absolutely that I've never worked for a better run company with a better view to how to be efficient and effective, and have never been more valued as an employee.

Market Based Management is what you'd think would be common sense, but instead, what most companies today practice is top down decision making and management. The result is that the people who are furthest from the work the company is actually doing are making the decisions that will drive profit and success; and surprise! way too often, those decisions reveal a distressing lack of connection to reality.

MBM is about how to bring the best that every employee has to offer to the value stream, making a better product for the customer, a profit for the company, and a rewarding career for the employee. Read it, practice it, believe it - it works.

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