SEPTEMBER 2015 Discovery THE QUARTERLY NEWSLETTER OF KOCH COMPANIES Re-writing the book on MBM® “Good Profit” photos by [email protected] Tuesday, Oct. 13, is an important day He also devotes a chapter to each of writes, “is to enable us to make a on Koch Industries’ corporate calendar. the five dimensions of Market-Based greater contribution to our customers, That’s when Charles Koch’s new book — Management®, followed by a chapter with communities, employees, and society his first in eight years — will be released. detailed case studies of MBM in action. as a whole. “Good Profit: How Creating Value for “Good Profit” is much more personal “That same focus will help any company Others Built One of the World’s Most than anything Charles Koch has written create good profit as well.” Successful Companies” is published by before. It includes many observations GoodProfitBook.com Penguin Random House, the world’s most about his parents, brothers, business global trade book publisher. partners and wife. But they aren’t the More than 100,000 hardback copies focus of the book. of the book were printed in mid- What he really brings to life is the way September. E-reader and audio book that Market-Based Management has versions will also be available in October. transformed the company’s approach “Good Profit” has already attracted to business in a way that helps people attention from newspapers, blogs and improve their lives. For Koch, that’s the broadcasters. That attention will likely only reason any business should exist. grow as worldwide rights are finalized — although no translations are expected to SPREADING THE NEWS be published before next year. Charles Koch spent more than a year Advance orders for the book began in writing “Good Profit.” (He explains why June, when GoodProfitBook.com was on page eight of this issue.) launched. That site includes information Charles Koch’s new book, “Good Profit,” is his When it is released, he will give first since “The Science of Success,” published about the book, its author and several several interviews to broadcasters and in 2007. Work on translations, including options for preordering. journalists, and make a few personal Chinese, has already begun. Those who preorder “Good Profit” have appearances at select events. the opportunity to interact with Charles Koch by asking questions on the website. His goal in making those appearances is to explain how good profit — the kind WHAT’S NEW that results from helping improve other THIS ISSUE... people’s lives — differs from the bad With more than twice the content of 3 Molex sponsors Chicago Marathon profit generated by corporate welfare, his last book, Charles Koch has devoted deception and unfair competition. 4 Unite to do right much of “Good Profit” to the many developments at Koch Industries during “The main reason we strive to increase 7 Looking Back: The growth of Koch the past eight years. our capital and our business,” Koch 8 Perspective: Charles Koch on “Good Profit” Letters and other submissions become the property of Koch Industries, Inc., and may be reproduced in whole or in Postal Pipeline part, including the author’s name, for any purpose and in any manner. Letters may be edited for length or clarity. When I first saw the completed David H. I love the new Discovery app. It makes Koch Plaza at NYC’s Metropolitan Museum it very easy to navigate through all the of Art, I thought I should write to tell you all content — even on a how wonderful it is. smartphone screen. The red umbrellas, the trees, the comfortable It allows me to read chairs and benches, and the gently when I have some overflowing fountains (which are a favorite of downtime at home my partner, who is an engineer); it is perfect. instead of only when Today the beautiful trees and fountains cooled I’m in the office. the mind on a hot and muggy day, so this John Prytulka seemed to be the right time to finally write. Enterprise architect It is a brilliant addition to a brilliant In July, employess in Wichita got to “test Koch Industries drive” the new Discovery app in Café Koch. Wichita, Kansas museum. Thanks from myself, other New Yorkers and the Met’s thousands of international visitors. Dear Mr. Holden, I want to thank you for what Flint Hills Your employees deserve to be proud of Resources is doing for our young people the result. What most impressed me when I saw you through its collaboration with the Ordway on PBS was not the subject — the need Nancy Rueth Center for the Performing Arts. I think it Public relations executive (retired) for penal reform — it was the way you all is fantastic! New York, New York conducted yourselves. Bringing the arts to so many people in such Here you were, two people from opposite a creative way is what makes the Ordway ends of the political spectrum. But the program outstanding and a great boon for way you two behaved, you were not just our community. representing left and right. You were two civilized Americans, working together to Thank you for what you are doing and for serve the people of this great nation. what it means for all of us who are involved in the arts. As an American, I was proud to have you both as our representatives, irrespective of Philip Brunelle point of view or the subject at hand. Artistic director and founder Together We Sing Balbir Mathur Minneapolis, Minnesota President, Trees for Life Wichita, Kansas Molex recently announced a multi-year partnership as official Discovery I just saw the op-ed (by Charles Koch September 2015 sponsor of the Bank of America Chicago Marathon, beginning and Mark Holden) with its full-throated Volume 21 | Number 3 with this year’s event on Sunday, Oct. 11. endorsement of the clemency initiative. EDITORIAL BOARD The event assists in raising millions of dollars for charitable I cannot tell you how much this means, Susan Armitage causes and the sponsorship will provide opportunities for Molex nor can I adequately express my gratitude. Melissa Cohlmia employees to get involved as runners, volunteers and spectators. Philip Ellender This goes a long way toward insulating Rich Fink “The Bank of America Chicago Marathon connects people from all the initiative from routine politics Jeff Gentry walks of life and around the world who are committed to health and elevates it to its rightful place as a Greg Guest and fitness. This aligns with our vision to provide innovative Charles Koch program to correct injustice. solutions for technology breakthroughs that help improve Steve Lombardo Norman L. Reimer people’s lives,” said Martin Walt Malone Executive director, National Association of Dave Robertson Slark, CEO of Molex. Criminal Defense Lawyers QUESTIONS? Foundation for Criminal Justice “As an official sponsor, Molex COMMENTS? Washington, D.C. is excited to show our spirit Email us at: [email protected] To read more about Koch’s support for Chicago and support one of the world’s preeminent of the SAFE Justice Act and overall DISCOVERY criminal justice reform, see the article marathons.” NEWSLETTER that begins on page 4. www.molex.com/marathon Download the app for news that comes to you. www.KOCHind.com 2 © 2015 Koch Industries, Inc. Koch is an EOE. M/F/D/V. International News Vadodara, India – Although it is best known for making world-class mass transfer equipment, the Koch-Glitsch facility in Gujarat made local headlines recently for a different sort of equipment: replacement limbs purchased for amputees. “So far this year, we’ve donated 23 high-tech artificial limbs to disabled people in this area,” said Jatin Parikh, president of KCTG - India. “These limbs are distributed by the Amputee Association of India Trust.” According to Dr. Virendra Shandilya, president of the Trust, the replacements Koch-Glitsch purchases are more advanced than those that are usually available in the area. With proper training, recipients can not only walk again, they can run. “At Koch, we are committed to the well-being of society,” said Alessandro Attura, president of Koch-Glitsch Global. “These donations, made on behalf of our 550 employees in Vadodara, reflect that commitment.” The Vadodara manufacturing site is one of the largest KCTG facilities outside the United States. Koch-Glitsch also has two global design centers in India — one in Mumbai and another in Vadodara. Al Jubail, Saudi Arabia – Al Jubail is not only the largest industrial city in the Middle East, it is the largest civil engineering project in the world. In 1996, Guardian Industries chose Al Jubail for the first advanced glass plant of its kind in the Gulf region. That facility is about to become even more advanced, thanks to the installation of a Magnetron Sputter Disposition Unit that should become operational early next year. Sputter coating is an effective way of adding multiple layers to the surface of glass after it has been formed into sheets. In the Middle East, where harsh sunlight and high temperatures are a fact of life, coated glass has become an essential building material. “Because our SunGuard Advanced Architectural Glass reduces ultraviolet ray penetration,” said Ron Vaupel, CEO of Guardian, “it not only keeps customers more comfortable, it can result in dramatic energy savings.” Vaupel noted that the tallest building in the world — the Burj Khalifa in Dubai — was built with Guardian glass made in Al Jubail. Since 2012, Koch has owned a 44 percent interest in Guardian Industries. Birmingham, England – Every year, 400,000 metric tons of carpet waste are buried in U.K. landfills.