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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.

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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.

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This is a really interesting story shared by my one of colleague Patrick Allman on how he was convinced that every company needs social collaboration at work while sitting in the stands watc
Story by Vipin Thomas on July 30, 2013
People are passionate, they love to learn and to contribute and to be social.  Our organizations are constantly looking for new ways to motivate employees, hire external consultants and experts t
Story by Kutlu Kazanci on January 16, 2011
Talking about Innovation and doing Innovation are different things.  Just as teaching innovation around made up problems (like designing a new kitchen) is vastly different than working on real wo
Story by Charles K Knight on May 15, 2019
GameChanger is a simple, flexible, and real-time innovation process run by an autonomous team at Shell that invests in helping people develop their novel ideas from genesis to proof of concept. 
Story by Russ Conser on January 7, 2013

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