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Good Profit

Koch Industry has grown from a valuation of $21 million in 1969 to 100 billion in 2016.

A massively profitable conglomerate, the empire has been run with the customers' (changing) needs as its focus. This is hardly surprising. Kodak, the first to invent a camera, was quickly eliminated by its competitors who are more alert to the changing needs of its customers. Amazon decoded book shopping, breaking the brick and mortar bookshops. Apple created new lifestyle, although Nokia, Ericsson were among the pioneer batch of smartphone. The ground is always crumbling beneath your feet when you have a company to run, there's no resting on your laurels.

In order to fulfill the customers' needs, however, internally, Koch employees are the centre of its business. If the people are not taken care of properly, they wouldn't stay, let alone give their 110%, Charles says in his interview. Koch industries had accidents which impaired their employees permanently, but they took responsibility of it. If their employees couldn't trust the management to care for their safety, who could?

Charles Koch, the president of Koch Industries also mentions in his book on what makes a good profit isn't that a company constantly produces profit through the peak and trough (as this could also mean sacrificing long term profit), but the resilience and persistence of the company to allocate its best resources properly during tough times, to grow even stronger after.

The 3 principles are simple fundamentals of a good company, yet so many companies failed to make it the core of its culture.

But Charles Koch, now 81, still spends at least 10 hours working in his office every single day. He still sets the ultimate example for his employees so that the culture of Koch Industries that he built from his father's legacy lives on.


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