buck. we re in it to maximize value over time. at koch industries, even you get evaluated, is that true? that s true. how does that work? that works great. i learn a lot. aren t you afraid of a bruised ego? no. here s the thing. i think all of us need this attitude. do you want to have your feelings hurt a little bit because you ve got some negative feedback? or do you want to continue down the disastrous track you re on and have a huge disaster. talk about a bruised ego. it may ruin your career. you read about this in the book, in business and in child rearing, you say we see too much of that today, explain that. well, i apply this, my same philosophy, in all aspect of life. and applied it in raising our children. so the first thing to me is
important how you make it and with whom. the starting point in my philosophy, the starting point, you know, for long-term success is not thinking how i do maximize my profit. it s how do i create the most profit, the most value for others, for my customers and in society. and, and then as you re able to do that, then you can worry about i want to be compensated for all the value i m creating for others. and that needs to be every if a business person wants to be successful over time, that needs to be the attitude. and the attitude through the entire organization. you say you have always prized value over talent in your hiring decisions. really? absolutely. i ve had the philosophy that john adams expressed, in the kind of system they were trying
we try to reward people according to the value they create. value they create in society and value they create for the company. and that you will hire based on talent even if you don t have an open spot necessarily? on value, yeah. if we find somebody who has a great combination of talent that we think we can use and values consistent with our principles, we want to hire them. how can you hold to a budget under those circumstances? well we re not big on budgets. we want to vallate everything to according, will it create value and eliminate whatever doesn t create value. you also talk about how the willingness to fail can also improve one s personal happiness. the willing to try to experiment and risk failure. right. if you never fail then you re probably not doing very much. you re certainly not innovating.
boss? oh, absolutely. we try to reward people according to the value they create. value they create in society and value they create for the company. and that you will hire based on talent even if you don t have an open spot necessarily? on value, yeah. if we find somebody who has a great combination of talent that we think we can use and values consistent with our principles, we want to hire them. how can you hold to a budget under those circumstances? well we re not big on budgets. we want to vallate everything to according, will it create value and eliminate whatever doesn t create value. you also talk about how the willingness to fail can also improve one s personal happiness. the willing to try to experiment and risk failure. right. if you never fail then you re probably not doing very much. you re certainly not innovating.
boss? oh, absolutely. we try to reward people according to the value they create. value they create in society and value they create for the company. and that you will hire based on talent even if you don t have an open spot necessarily? on value, yeah. if we find somebody who has a great combination of talent that we think we can use and values consistent with our principles, we want to hire them. how can you hold to a budget under those circumstances? well we re not big on budgets. we want to vallate everything to according, will it create value and eliminate whatever doesn t create value. you also talk about how the willingness to fail can also improve one s personal happiness. the willing to try to experiment and risk failure. right. if you never fail then you re probably not doing very much. you re certainly not innovating.