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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.

47 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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Build and foster shared learning environments where employees can openly share knowledge, best-practices and tools.
Hack by Malte Holm on April 16, 2010
The idea of this hack is simple but a bit revolutionary—institute systematic rotations for managers in a particular role, which would in effect position-specific set term limits for upper and middle m
Hack by Jouni Selin on June 14, 2012
Create a networked community connecting present and ex-consultants that 1) promotes sharing of solutions and problems2) identifies resources availability for projects
Hack by Bernard Tan on July 13, 2011
How many innovations died within big corporations, whose managers failed to spot a breakthrough idea in unchartered seas of innovation portals and CTOs’ e-mail boxes?
Hack by LBS team 12 on January 9, 2011
The idea is that employees no longer work according to the job descriptions, but they bid for each task.
Hack by Fanfeng Si on November 30, 2010
B Lab's vision is to redefine success in business by building a global movement of entrepreneurs competing not just to be best in the world, but best for the world.
Hack by Andrew Kassoy on April 9, 2012
Decisions on business bottlenecks can be made by concerned employees (regardless of their rank) aptly only when the broader aspects of business are clear to them. This can be achieved by understa
Hack by AMIT NANDA on March 31, 2014
Work can be fun. But until now there has been no systematic way to make it so. We analysed people’s motivation and built a taxonomy of 21 types of fun.
Hack by Jonathan Winter on September 22, 2010
A framework is needed to make an effective community in an organization,  a framework which engages the whole organization as a community without ranks and allows a free f
Hack by virender vyas on March 21, 2011
Here is an easy parable about what I would call "stone heaps" in organisations. This short story does not introduce innovative concepts about management and leadership per se.
Hack by Sven Behrendt on October 13, 2011

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