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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.

44 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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It is time to accord a good death to all forms of office, rank or jurisdiction based on what I call the 'archaic A's' - Age, Ancestry & Assignment.
Hack by Stephen Remedios on February 18, 2014
An employee should be chosen each month to train other employees on the leading principles of their industry.
Hack by Nathan Cunningham on February 20, 2014
Higher education is fundamental right for a decent livelihood.
Hack by Rajesh Gandhi on December 21, 2010
Today we manage workers by headcount, jobs, roles, processes, and infrastructure.
Hack by Michael Grove on April 30, 2012
Corporate should empower the potential of Human Resources by treating them as Internal Customers. The value proposition must be of equal mix between Clients & Employees.
Hack by H. Omprakash on March 11, 2014
Organizations create efficiency by choosing one project over another. But is that really the way to innovate?
Hack by Laura Cerruti on September 18, 2010
Setting up an organisational system that enables a market-like scenario for supporting and funding innovative ideas.
Hack by Mathew J Varghese on March 20, 2011
Thought Processes for any kind of issues, growth, ideas are good sign for any company to empower their Human potentials.
Hack by H. Omprakash on March 31, 2014
Workers often find themselves too bound by deadlines and project expectations to have time to collaborate on cool, interesting, but less "high priority" ideas.
Hack by Vijay Karunamurthy on September 20, 2010

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