37sec snip

#381: Charles Koch — CEO of Koch Industries

The Tim Ferriss Show

notes

NOTE

The Role of Property Rights and Decision Rights in Market Base Management

Property rights and decision rights are key dimensions of market-based management. Other important values include integrity, humility, respect, and a desire to contribute. According to the von Misses human action model, people only act when they are dissatisfied with their current state, have a vision of a better state, and have a path to achieve it.

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Transcript

Episode notes

“When goods don't cross borders, soldiers will.” — Charles Koch, quoting Frédéric Bastiat

This episode will no doubt surprise people, and my guest came to me through channels I wouldn't have expected.

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Charles Koch received a bachelor’s degree in general engineering and two master’s degrees, in nuclear and chemical engineering, from the Massachusetts Institute of Technology.

He is chairman of the board and CEO of Koch Industries Inc., a position he has held since 1967. He is renowned for growing Koch Industries from a company worth $21 million in the early 1960s to one with revenues estimated as high as $110 billion by Forbes. It’s one of the largest privately held companies in the world, and by revenue, it’s larger than both Boeing and Disney. He has transformed the business into a diverse group of companies that employ nearly 130,000 people—making everything from Dixie cups to components in your cell phone.

Charles credits the success of Koch Industries to applying proven principles of social and scientific progress, which led to the development and implementation of his Market-Based Management® (MBM®) business philosophy. He describes MBM and its applications in two of his books, The Science of Success and Good Profit.

Charles is now using those principles in philanthropy, as the founder of Stand Together, to tackle some of the biggest challenges in the U.S. Stand Together is partnering with thousands of social entrepreneurs to help them improve their effectiveness and scale at tackling poverty, improving K-12 education, bringing justice to our criminal justice system, and more.

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