Feedback is where the ball starts rolling

Written by Bjork on April 21st, 2009

I would argue that MBM has been created from a societal context that has direct applicability to business, not the other way around.  Koch Industries is not bringing structure to social systems, but using the natural tendencies of human beings to maximize the rate of increase of prosperity.  By better understanding the actions and reactions of individuals through incentives, Koch’s market-based approach is allowing individuals to understand themselves better, and place themselves where they are most valued. 

 

“Only a person’s action, not what he says, gives us an indication of how he values something.”  Whether we act with a purpose in mind, or from our own subconscious behavior, we all act.  Koch is still in line with Hayekian principles, because the “purposeful action” as described by Koch is protecting the lines of feedback and communication, not restricting them.  This feedback is the mechanism that promotes learning, and easily allows for adaptation to change.  By protecting feedback, Koch is not forcing any certain philosophy on anyone, but allowing each person to reach their unique potential, which in the end benefits everyone. 

 

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