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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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A shared space to which colleagues are encouraged to post divergent ideas and innovative solutions.
Hack by Silvia Colombo on June 28, 2011
The idea of our hack wants to challenge the highly unconscious, but nothing less dominant dogma of heroic leadership, epitomizing the command and control management model.
Hack by Michael Gebauer on June 20, 2011
elBulli is a well-known restaurant famous not only for his chef, Ferran Adria, but also for being a creative organization in which every year more than a hundred elaborations are put in place.At elBul
Story by Andrés Hatum on June 16, 2011
3M takes its Markets of the Future process from a cloistered analysis by corporate strategists to a global Web 2.0-enabled event, tapping the collective insight of 20,500 3Mers in over 60 countries.&n
Story by Barry K. Dayton on June 16, 2011
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
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
The mass retirement of organisations’ current leadership over the past few years, has and still is putting pressure on organisations, to re-examine their recruiting strategies to ensure that the a hig
Barrier by Busi Nkosi on May 4, 2011
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
I've always admired CEOs who forgo multimillion dollar salary payments, like Jobs at Apple,but if you drill into the pay-scales at the top companies, you can seethat executive compensation has, well f
Barrier by Aaron Anderson on April 27, 2011
Don’t hire people the usual (and expensive) way – let them volunteer for the job instead.

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