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Read online @ B A K K E N O I L B I Z . C O M / d i g i t a l - j o u r n a l 25 ServiceS: Wellsite coordination Oilfield rentals Tank rentals Oilfield Trucking Water Services completion rentals Flowback Services Sand & ceramic · Sales · Transport Safety · consulting · Training Company Headquarters: 2101 Cedar Springs Rd #650 Dallas, Texas, 75201 Office: 214-720-1700 Midwest & Rockies Region: Williston Basin: 13375 62nd Street NW Williston, ND 58801 Office: 701-826-7900 24 Hr. Dispatch: 1-855-221-1600 Powder River & DJ Basin: 3 Locke Road Douglas, WY 82633 Office: 307-359-4015 24 HR. Dispatch: 1-855-221-1600 West Texas & South Texas Region: Permian Basin: 11109 West County Road 46 Midland, TX 79707 Office: 432-699-8600 24 Hr. Dispatch: 1-844-221-1500 120 EH Bar Road Big Lake, Texas 76932 24 HR. Dispatch: 1-844-221-1500 3200 HWY 17 Pecos, TX 79772 24 Hr. Dispatch: 1-844-221-1500 Other Locations: New Town, ND Killdeer, ND A privately owned oilfield ser vice company with operations in North Dakota, Montana, Wyoming and Texas. Part II examines each of the factors that enabled Charles to build the company to its current size. They are listed below. He states that a successful business must rest on several principles, which are em- bodied in his philosophy. He calls it Mar- ket-Based Management. For success, he believes the critical ingredients are: • Vision: Guide to an Unknown Future. • Virtue and Talents: Foremost, hir- ing employees with the right values. Second, talent. • Knowledge Processes: Using Infor- mation to Produce Results. • Decision Rights: Giving employees "ownership" of their work special- ties. • Incentives: Motivating employees to create value and maximize their contribution through bonus com- pensation. It's taken Charles almost 50 years to distill his thoughts on business success, which he has succinctly presented in roughly 100 pages of his book. Putting the vision into practice has involved all the previously listed princi- ples as well as the hopes and desires of Fred Koch. Today's version is an enter- prise operating in nine divisions. • Flint Hills Resources: Petroleum refining • Koch Minerals: Commodity trading and distribution. • Koch Supply and Trading: Commodity trading and risk man- agement services. • Koch Pipeline: Crude oil and refined products. • Koch Ag and Energy Solutions: Nitrogen fertilizer and other plant nutrients. • Koch Chemical Technology Group: Mass transfer equipment and pollution control equipment. • INVISTA: Nylon fiber, spandex and engineering polymers. • Georgia-Pacific: Consumer products, wood products, gypsum products and chemicals. • Molex: Electronic and electrical connection systems. This line-up evolved from a much longer list of businesses that lost their place in the Koch portfolio. The company has exited 44 businesses. Among them are trucking, tankers, coal mining, drilling rigs, business aircraft, meat process- ing, medical equipment and many more. In other words, even though Charles has pursued many successful ventures, there are a greater number of ventures that were unsuccessful. As painful as it might have been, he was able to ac- knowledge when a business was no lon- ger suitable. At that point, he took steps to put it into the hands of people more likely to succeed with it. ➤ continued, pg 45

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