Market Based Management® is the unique management methodology developed and implemented
by Koch Industries, Inc. It is a business philosophy that is rooted in the science of human action
and applied through five dimensions: Vision, Virtues and Talents, Knowledge Processes, Decision Rights and Incentives. Koch Industries’ MBM Guiding Principles articulate our Rules of Just
Conduct and define the core values which guide our everyday business activities.
1. Integrity
Conduct all affairs lawfully and with integrity.
2. 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.
3. Value Creation
Create real long term value by the economic means. Understand, develop, and apply MBM® to
achieve superior results. Eliminate waste.
4. 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.
5. Customer Focus
Understand and develop customer relationships to profitably anticipate and satisfy
their needs.
6. Knowledge
Seek and use the best knowledge and proactively share your knowledge while
embracing a challenge process. Measure profitability wherever practical.
7. Change
Embrace change. Envision what could be, challenge the status quo, and drive
creative destruction.
8. Humility
Practice humility and intellectual honesty. Constantly seek to understand
and constructively deal with reality to create real value and achieve
personal improvement.
9. Respect
Treat others with dignity, respect, honesty, and sensitivity. Appreciate
the value of diversity. Encourage and practice teamwork.
10. Fulfillment
Fulfillment Produce results that create value to realize your full potential and
find fulfillment in your work.
MBM® and the stylized “K” are registered trademarks of Koch Industries, Inc.
Market Based Management®