As CEO of Georgia-Pacific, I’m often asked what’s on my reading list. I know I might be biased, but I’m enthused about sharing my latest read – Charles Koch’s new book, Good Profit: How Creating Value for Others Built One of the World’s Most Successful Companies.
The book explains that the way to long-term success is not to ask “how do we maximize profits?,” but instead, “how do we maximize the value we create for others?” That’s the crux behind Market-Based Management® and how our parent company, Koch Industries, has used this philosophy to become one of the most successful companies in the world.
Good Profit details numerous stories about Georgia-Pacific, including a look at the rationale behind Koch Industries’ purchase of our company in 2005 and the successes and challenges along the way. There are also several detailed case studies demonstrating how our employees, products and facilities have created value for our customers, and ultimately contributed to Koch's success.
A successor to Charles Koch’s 2007 book The Science of Success, this new book stresses the responsibility we all have to create value for society. This is something Georgia-Pacific has done and continues to do through innovation, quality products, charitable acts and contributions as well as by operating sustainably.
You don’t have to be a Koch employee to find this book insightful. There are valuable lessons for anyone considering starting their own business or even just applying the book’s insights to their own work and life.
After all, as the full title of the book alludes to, creating value for society isn’t just something that should happen after you become successful – it’s the best way to achieve success itself.