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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.

43 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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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
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
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
Higher education is fundamental right for a decent livelihood.
Hack by Rajesh Gandhi on December 21, 2010
We want to completely revamp traditional project proposal methods in businesses to allow for greater creativity, innovation, and employee ownership.
Hack by Christian Lee on March 31, 2014
Manage Without Them is a complete disagreegation of management to allow integration of technology and peer to peer collaboration without loss of governance.
Hack by Matthew De George on May 26, 2011
If you stop and think about how you think, or if you look in the proverbial mirror and try to identify what you “see” – more than likely you are framed around what you are familiar and comfortable wit
Hack by Matthew Sagaser on October 26, 2015
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

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