Market-Based Management® business philosophy
INVISTA's Market-Based Management® (MBM®) business philosophy is a value system and a framework for action developed by Charles Koch, chairman of the board and chief executive officer of Koch Industries, Inc. and a member of the Board of Managing Directors of INVISTA B.V. It is a holistic approach to management that integrates theory and practice and prepares organizations to deal successfully with the challenges of growth and change.
The essence of the MBM philosophy is creating real, sustainable value for customers and society as a whole. It encourages innovations that create value by making people's lives better and contributing to prosperity in society. Value creation requires providing products and services that customers value more highly while consuming fewer resources. This leaves more resources available to satisfy other needs in society.
The MBM philosophy enables employees to constantly search for opportunities to improve and grow. Rooted in guiding principles such as integrity, humility and respect, the MBM framework attempts to bring some of the workings of the free market inside the company, building on the belief that freedom is a powerful engine for generating well-being, discovery and growth.
INVISTA's MBM® Guiding Principles
- 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 compliance. Stop, think and ask.
- Value Creation: Create real long-term value by the economic means. Understand, develop, and apply Market Based Management® to achieve superior results. Eliminate waste.
- Principled Entrepreneurship®: Demonstrate the sense of urgency, discipline, accountability, judgment, initiative, economic and critical thinking skills, and risk-taking mentality necessary to generate the greatest contribution to the company and society.
- Customer Focus: Understand and build 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 whenever 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.
These principles help strengthen and position INVISTA’s businesses to create superior value for customers around the world.
Charles Koch has published a book on the Market-Based Management® business philosophy called The Science of Success. To learn more about the MBM® philosophy and this book, please visit the Web site at www.kochscienceofsuccess.com.