How Market Based Management Built the World's Largest Private Company.
Market Based Management (MBM) is a holistic approach to management that integrates theory and practice and prepares organizations to deal successfully with the challenges of growth and change. The theory of MBM is rooted in the science of human action, and is applied by Charles G. Koch in this book in five dimensions: vision (determining where and how companies best create long-term value); virtue and talents (helping ensure that companies hire and retain people with the right qualities and skills); knowledge processes (sharing and applying relevant knowledge and tracking profitability); decision rights (ensuring the right people are in the right places with the authority to make decisions, and holding them accountable); and incentives (rewarding people for the value they have created).
Koch discusses each of these dimensions in detail throughout the book, and also draws on the lessons learned from his personal studies of human success/failure in the fight to achieve peace, prosperity and societal progress. Koch touches on topics such as history, economics, politics, government, and science and technology because all of these areas of life influence business management, decisions, and profitability.
