Terms
The ability of a business to create greater value than its competitors, which is different than comparative advantage. This is a key building block in our Decision-Making Framework used to analyze investment-making opportunities.
What is Competitive Advantage?
Be humble, intellectually honest and deal with reality constructively. Develop an accurate sense of self-worth based on your strengths, limitations and contributions. Hold yourself and others accountable to these standards.
What is Humility?
A set of mental models, tools, and ideas that help us to determine where and how, given our capabilities and available opportunities, the organization can create the most long-term value for customers and society.
What is Vision?
A ______ is the shared set of assumptions, theories and methods that guides the work of individuals and groups. All of us have them. ______ help us make sense of the world
What is Changing Paradigms?
The set of shared attitudes, values, norms and behaviors that characterizes an institution or organization. The MBM Guiding Principles are the best articulation of the culture we desire.
What is Culture?
Acquire the best ______ from any and all sources that will enable you to improve your performance. Share your ______ proactively. Provide and solicit challenge consistently and respectfully.
What is Knowledge?
A set of mental models, tools, and ideas that help bring the beneficial aspects of private property rights and entrepreneurship to life in the organization. We expect employees to demonstrate entrepreneurship and work to ensure they have the right role, responsibilities, and authorities. Employees are held accountable for their individual contribution to advancing our vision.
All economic decisions involve costs and benefits, but not all involve money. Choosing a financial investment involves money. Choosing what to listen to during your commute does not. Both have an opportunity cost. Because we want to employ resources – including people and their time – in the most valued way, opportunity cost must always be considered.
What is Economic Thinking?
The anticipated value for a given investment or action considering the potential outcomes and their probabilities.
What is Expected Value?
Treat everyone with honesty, dignity, _____ and sensitivity. Embrace different perspectives, experiences, aptitudes, knowledge and skills in order to leverage the power of diversity.
What is Respect?
______ is a set of mental models, tools, and ideas that help us ensure knowledge is optimally acquired, shared, and applied. When the ______ Dimension is applied well, key business drivers are measured and lead to profitable action.
Partners are those who join with us in any form, manner or endeavor.
What are Partnerships?
Having a variety of backgrounds, skills and experiences helps us better anticipate and satisfy customer needs, make better decisions and get superior results.
What is Diversity?
Have the courage to always act with ______.
What is Integrity?
___________ is a set of mental models, tools, and ideas that help us to motivate each employee to make the maximum contribution to the long-term value of the company.
What is Incentives?
____ ______ is an important element in good economic thinking that can greatly improve business decisions. It is an effective tool to help us eliminate waste, innovate and discover profitable opportunities.
What is Marginal Analysis?
When people from all walks of life and vocations are free, respected and rewarded for the value of their work, they can improve their own circumstances as they contribute to the well-being of others.
What is Human Flourishing?
_____ yourself and the company. Seek, develop and utilize the visions, strategies, methods and products that will enable us to create the greatest value.
What is Transformation?
________ is a set of mental models, tools, and ideas that help us to develop a culture based on MBM principles and ensure people with the right ____ and ____ are hired, developed, and retained.
What are Virtue & Talents?
_______ is a simple concept reliant on a system of equal rights that respects the dignity of each person and their right to live as they choose – as long as they do not violate the rights of others.
What is Openness?
Chairman and chief executive officer of Koch Industires, the second-largest closely held business in the US.
Who is Charles Koch?