Key Takeaways, Analysis & Review of Charles G. Koch Good Profit

You have to read about Charles Koch to believe that integrity at this high level of business still exists in America. He is a truly a remarkable man that has the kind of character that I pray my own children one day will exhibit in their businesses and their private lives. You will get a picture in Good Profit why his company went from $61 million annually in the 60s to over $110 billion today. His firm boils down to how he picks his employees-- values over talent. He turns down the most capable seekers if they do not treat people with the utmost of respect and show great levels of humility. This is rare stuff in business these days. Just think where our nation could be if more business owners would be more old fashioned like this rare gem. You will get a picture in his book of how generational ethics comes down from his father who wrote a touching letter to him as he gave him a significant sum of money sharing with his son that he will consider it a mistake to have given him this money if he steals the glory and pride of accomplishment. Read Koch and you will want to be more like this gentle giant!

A must read for any entrepreneur or senior manager. The author explains how he has woven his personal philosophy and core values into critical management tools to help sustain business profitability and high growth rates. Fascinating to read about managing "Decision Rights" - allowing the person with best relevant knowledge or , as he says, "comparative advantage" to make decisions as opposed to the most tenured pedigreed ranking person. A refreshing and unabashed primer on capitalism in action.

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.