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Create internal markets for ideas, talent & resources

“Organizations need a resource allocation process that more accurately mimics the selection pressures of a real market.”

Funding decisions in corporations are usually made at the top and are heavily influenced by political factors. That’s why companies over-invest in the past and underfund the future. By contrast, resource allocation in a market-based system like the New York Stock Exchange is decentralized and apolitical. While markets are obviously vulnerable to short-term distortions, in the long run they’re better than big organizations at getting the right resources behind the right opportunities. To make resource allocation more flexible and dynamic, companies must create internal markets where legacy programs and new projects compete on an equal footing for talent and cash.

43 Stories
71 Hacks
5 Barriers

Create internal markets for ideas, talent & resources

“Organizations need a resource allocation process that more accurately mimics the selection pressures of a real market.”

Funding decisions in corporations are usually made at the top and are heavily influenced by political factors. That’s why companies over-invest in the past and underfund the future. By contrast, resource allocation in a market-based system like the New York Stock Exchange is decentralized and apolitical. While markets are obviously vulnerable to short-term distortions, in the long run they’re better than big organizations at getting the right resources behind the right opportunities. To make resource allocation more flexible and dynamic, companies must create internal markets where legacy programs and new projects compete on an equal footing for talent and cash.

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Empower employees to create and fund their own initiatives by allocating a portion of their annual bonus pay, matched by the company.
Hack by Kartik Subbarao on January 19, 2011
Create a crack team of change agents available to parachute into businesses and support the empowerment of it's intrapreneurs to affect the culture of the company and establish an openness to innovati
Hack by Mike Orchard on June 29, 2013
"Lock in" of talent may squelch passion, demoralize employees and of course lead to worse fit of talent to problems.  Top down delegation of tasks utilizes fewer minds thinking about what pr
Hack by Gisela Jönsson on July 5, 2011
Implement a 'Commercial Innovation Bazaar' to create a market for innovation within the company    
Hack by Chary Chigurala on October 2, 2010
Innovation should be the most enjoyable form of work, but the project modality leaches all joy from it: deadline pressure, boss-driven scope, and a team made up of "the usual suspects".
Story by Jeremy Clark on May 11, 2010
With globalization and technology, skills become obsolete rapidly. The traditional approach of performing specialist work is less effective.
There is a lot of frustration and sometimes limitation around career advancement, professional development, succession planning etc.
Hack by Jennifer Long on October 17, 2013
A shared space to which colleagues are encouraged to post divergent ideas and innovative solutions.
Hack by Silvia Colombo on June 28, 2011

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