Definitions

What is Market-Based Management®?
Market-Based Management (MBM®) is a management philosophy that enables an organization to succeed long term by applying the principles that cause a free society to prosper. It’s based on knowledge of human societies drawn from economics, history, philosophy, psychology, and other disciplines. In a free society, millions of people interact with one another in ways that create value, yet with no central authority directing each person’s actions. There is a stable rule of law, and a culture that promotes value-creating behavior. Entrepreneurs who discover how to make their fellow citizens better off are rewarded with more property rights, while producers who destroy value – by creating a product nobody wants, for example – have their property taken away by the market. People strive to serve others because it’s the best way to achieve their objectives. Prices and profit and loss provide information about what people value and the suitability of methods and resources to satisfy those values. Free speech facilitates the creation and sharing of knowledge.

What is Principled Entrepreneurship™?
Principled Entrepreneurship™ is the practice of maximizing long-term profitability by creating real value in society while faithfully acting lawfully and with integrity.

What is Creative Destruction?
Joseph Schumpeter on Creative Destruction: "The…process of industrial mutation… incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of creative destruction is the essential fact of capitalism.”