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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.

48 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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In an era of federally mandated school turnarounds, Cristo Rey Boston High School is an example of a self-directed improvement plan in which a principal and a core group of teachers were empowered to
Story by Jeffrey D. Thielman on May 28, 2013
How do you make a big company’s culture more innovative and entrepreneurial? Start with a corridor and work your way out.
Story by Christos Tsolkas on February 11, 2016
Facing the challenges of our comapny (mounting pressure, weak & uninterested governance, lack of centralization) our team realized that no singular solution could tackle the problem in its full co
Story by Bence Horvath on July 18, 2011
This story is about the training program we run to develop the characteristics needed for teams and individuals to be successful in taking on very dynamic and entrepreneurial projects.
Story by Christos Tsolkas on April 6, 2016
Leader's see and pursue over or under encouragement of certain people or idea's - favourite's or narscissm is in their blood .
Hack by NAVEEN KHAJANCHI on July 9, 2013
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
It is with great anticipation, I begin to share my share excerpts of my upcoming book, The Risk Factor: Why Every Organization Needs Big Bets, Bold Characters, and the Occasional Spectacular

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