Market-Based Management®
Koch Supply & Trading companies are focused on long-term success through the daily application of Market-Based Management®.
Developed by Koch Industries CEO Charles Koch, MBM® is a holistic approach that encompasses five dimensions:
Vision – Determining where and how the organization can create the greatest 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 organization.
For more information about Market-Based Management®, visit Koch Science of Success.
A Culture of Virtue
MBM® requires a culture centered around specific attributes. These attributes set the standards for evaluating policies and practices, measuring conduct, establishing norms of behavior and building the shared values that guide individual actions. Our Guiding Principles articulate Koch companies’ rules of just conduct along with our shared values and beliefs:
- Integrity
Conduct all affairs lawfully and with integrity. - Compliance
Strive for 10,000% compliance, with 100% of employees fully complying 100% of the time. Ensure excellence in environmental, safety, and all other areas of compliance. Stop, think and ask. - Value Creation
Create real long-term value by the economic means. Understand, develop, and apply MBM® to achieve superior results. Eliminate waste. - Principled Entrepreneurship™
Demonstrate the sense of urgency, discipline, accountability, judgment, initiative, economic and critical thinking skills, and the risk-taking mentality necessary to generate the greatest contribution to the company and society. - Customer Focus
Understand and develop relationships with customers to profitably anticipate and satisfy their needs. - Knowledge
Seek and use the best knowledge and proactively share your knowledge while embracing a challenge process. Measure profitability wherever practical. - Change
Embrace change. Envision what could be, challenge the status quo, and drive creative destruction. - Humility
Practice humility and intellectual honesty. Constantly seek to understand and constructively deal with reality to create real value and achieve personal improvement. - Respect
Treat others with dignity, respect, honesty, and sensitivity. Appreciate the value of diversity. Encourage and practice teamwork. - Fulfillment
Produce results that create value to realize your full potential and find fulfillment in your work.
Be Principled