Market-Based Management® is the engine that powers Koch companies. Developed by Charles Koch throughout the past 50 years, MBM® 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 theory of MBM is rooted in the Science of Human Action.

MBM enables organizations to succeed long term by applying the principles that allow free societies to prosper. Under the leadership of Charles Koch and through the rigorous and holistic application of MBM, Koch Industries has been transformed into one of the most successful companies in the world.

Creating Value

The essence of MBM is creating real, sustainable value for customers, communities and Koch companies. MBM 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.
As Koch Industries continues to grow through acquisitions, applying MBM is integral to helping unleash the knowledge and ideas that newly acquired employees have to innovate and to make their products or processes better. Read more about this in an interview with Koch executives.  
MBM perspectives

The following perspectives, taken from speeches given by Charles Koch, offer insight on the development and application of MBM.

The Importance of Market-Based Management in Achieving Environmental, Health and Safety Excellence 

Austrian Lessons for a Vibrant Economy