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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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LinkedIn, as a business-oriented social networking site, in my view, can create conditions to allow most of its users, that is, all registered identified professional talents, to willingly co-found a
Hack by Aaron Brook on July 6, 2014
The idea of this hack is simple but a bit revolutionary—institute systematic rotations for managers in a particular role, which would in effect position-specific set term limits for upper and middle m
Hack by Jouni Selin on June 14, 2012
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
Setting up an organisational system that enables a market-like scenario for supporting and funding innovative ideas.
Hack by Mathew J Varghese on March 20, 2011
In our group tasks are chosen by our people.People are encouraged to volunteer to lead projects and others are encouraged to volunteer to join them and support them.The whole work is self-organized.Wh
Story by Edna Pasher on July 9, 2013
A very simple, bare episode 3.Opposite to 1 & 2.Kind of a break.And Mix experience.All about : how do you want to bring value and define value at the same time ?
Hack by Frederic J.Leconte on October 22, 2014
Recession disallowed growth in certain industries. This saw a learning stagnation for years not enabling a role enhancement, especially in the knowledge based industry.
Barrier by Radhakrishnan NR on November 30, 2010
Organisational flexibility is a much discussed topic.The purposes of this “hack” are:Providing a model which is designed to enhance organisational flexibility;Ensuring involvement of employees;Making
Hack by Fan Zhang on March 1, 2011
Today we manage workers by headcount, jobs, roles, processes, and infrastructure.
Hack by Michael Grove on April 30, 2012
While so many of us acknowledge how critical it is to have systems thinking in order to maximise productivity in organisations why is it that systemic shut down of skills prevails?
Barrier by Eldo Kurian on October 28, 2010

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