The Science of Success

Northwood Colleagues:

The Omniquest selection for winter term was Science of Success by Charles Koch.  This book was new to me this fall but has become a favorite of mine due to the similarity between Koch Industries and NU philosophy.  After our alumnus, Jonathan Williams, BBA’05, recommended it, I thought it to be an excellent choice for the Northwood community to have as reference while we are deep in the Northwood Strategic Planning Process (NSPP).

The theory of market-based management (MBM) is rooted in the science of human action.  It is a proven process that can lead to prosperity when the principles are applied organizationally in a manner that produces results.  Koch Industries, the company headed by Mr. Koch, focuses on integrity, compliance, value-creation, principled entrepreneurship, customers, knowledge, change, humility, respect, and fulfillment.  Much like our own Code of Ethics, these principles as outlined in Science of Success exemplify the mission of Northwood University.

There are five dimensions to MBM:

1. Vision (determining where and how companies best create long-term value)
2. Virtue and Talents (helping ensure that companies hire and retain people with the right qualities and skills)
3. Knowledge Processes (sharing and applying relevant knowledge and tracking profitability)
4. Decision Rights (ensuring the right people are in the right places with the authority to make decisions, and holding them accountable)
5. Incentives (rewarding people for the value they have created)

Critical to the success of MBM are the people within the organization.  From crafting the vision to sharing the knowledge to empowerment and ultimately to reward, the fate of the organization is held by its people.  More than employment policies or even work processes, more than discussions at meetings, more than decisions made at “the top,” the right people, sharing knowledge and responsibility, create an organization’s value.

Your participation in the NSPP is important.   Every one of us at Northwood will play a critical role in the future of our University.  In calling upon the entire Northwood family to read the Science of Success, it is my hope you can start to see the vision I have for Northwood University.  Successful, prosperous, and thriving to be sure, but the choice of which roads we will take as we move forward lies with all of us.

It lies within us to foster an open environment that invites challenge and embraces change.  We must actively seek knowledge and alternate points of view.  The quality of the process depends on a willingness to respectfully engage in open, honest, and objective debate, to challenge the status quo, and to consider humbly any challenges to our own beliefs, proposals and actions.   It is this type of environment that will allow Northwood University to work toward maximizing our “value creation” for all our stakeholders.

There is much work to be done, but I am looking forward to what we can accomplish.  I hope you are as well.  If you haven’t picked up your copy of the book yet, or if you haven’t quite finished reading it, I encourage you to do so.  It can serve as a blueprint for the opportunities that lie ahead.

Have a great weekend.

Keith A. Pretty, J.D.
President and CEO
Northwood University
4000 Whiting Drive
Midland, MI 48640
989.837.4203 (phone)
989.832.9590 (fax)