If you are looking for a book that will inspire you to adapt takeaways into your business, this may not be the one. It is a mix of economics, business profile, behavioural finance and good storytelling of business failures. Although it is written by Charles Koch, CEO of Koch Industries, one of America’s successful enterprises, the book has several details of failures, including a time in the 1970s when Koch believed the company would go bankrupt.

The book explores the market-based management approach, which is the foundation of Koch Industries. It is basically the science of human action, which prepares individuals to deal successfully with the challenges of growth and change while fostering a healthy, growing organisation. To a large extent, this is the method on which he has built a business that is now worth over $100 billion. In the process of achieving this size and scale, the company has helped several employees to grow beyond their original capacities.

Koch defines “good profit” as profit that results from creating value for customers— as the customers themselves define value. He says: “No one can decide which product a customer values better than the customer. Dedicating ourselves to satisfying what she values is showing respect for her. This is what generates good profit.” The message is loud—bad profit is something that comes from disrespecting customers.

Citing Friedrich Hayek and Joseph Schumpeter, Koch argues that when companies seek profits in a properly functioning market economy, without corporate welfare to protect the inefficient business and society, both benefit. The case studies at the end of the book are of interest and anecdotes from the company’s history are sprinkled to make for an interesting read. Where it still lacks is the personal side of Koch and how it helped in the making of Koch Industries.

Publisher

• piatkus

Price

• Rs 399

Author

• Charles G. Koch

olmdesk@outlookindia.com