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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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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
For anyone managing a website, optimization is key. However, it is not always easy to manage the optimization and create a site that is user-friendly.
Story by Samantha Hager on April 25, 2017
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
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
BACKGROUND It was The Economist’s Vijay Vaitheeswaran who coined the term “micropower” to refer to sources of electricity that are relatively small, modular, mass-producible, quick-to-dep
Hack by patrick chanda on June 24, 2018
A colleague who I worked with 4 years ago tried to use the company bar, an existing employee perk, to generate an internal market for new product ideas.
Story by Daniel Pay on September 21, 2010
Zero-sum budgeting has long been the practice for university &college operations, particularly in the public sector.  Essentially,when the city, county, and state governments are generating p
Barrier by Aaron Anderson on April 28, 2011

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