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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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My innovation audit produced outcomes that people did not want to hear. Come with me on the journey that positively creates a framework/vision to take my organisation forward.&n
Hack by David Nolan on December 23, 2010
Feeling recognized feels amazing. At work we started a recognition revolution with StarmeUp!
Story by Laura Alfonsin on August 17, 2017
A shared space to which colleagues are encouraged to post divergent ideas and innovative solutions.
Hack by Silvia Colombo on June 28, 2011
Organizations create efficiency by choosing one project over another. But is that really the way to innovate?
Hack by Laura Cerruti on September 18, 2010
The idea is that employees no longer work according to the job descriptions, but they bid for each task.
Hack by Fanfeng Si on November 30, 2010
We are in a transitory phase of realizing that creativity is an inherent ability within all of us.
Hack by Atna on July 19, 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
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
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
Not every manager works in an office setting and one of the biggest management issues I faced when I used to be an executive chef were smoke breaks.
Story by Samantha Hager on March 15, 2017

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