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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.

45 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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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
Decisions on business bottlenecks can be made by concerned employees (regardless of their rank) aptly only when the broader aspects of business are clear to them. This can be achieved by understa
Hack by AMIT NANDA on March 31, 2014
Work can be fun. But until now there has been no systematic way to make it so. We analysed people’s motivation and built a taxonomy of 21 types of fun.
Hack by Jonathan Winter on September 22, 2010
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
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
Today we manage workers by headcount, jobs, roles, processes, and infrastructure.
Hack by Michael Grove on April 30, 2012
Motivating and equipping sales people with effective selling skills are two of the most confounding and widely misunderstood challenges in management.
Hack by Victor Kwan on June 14, 2011
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

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