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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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This is a case study of 3M (MinnesotaMining and  Manufacturing), a company that truly values innovation
Hack by Francis Xavier on March 14, 2011
This is a cost-effective and collaborative way to achieve two things: more efficient use of your company’s resources and a product that better meets the needs of your customers.  There is no reas
Hack by John Hod on March 14, 2011
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
Reaching right levels of the organisation can be a difficult task even for the employees.
Hack by Aleksandar Zivaljevic on February 27, 2011
In today’s challenging healthcare industry where every team member is relied upon to deliver an exceptional patient experience each and every day, workforce engagement is pivotal to success.
Strategy formulation looks at external factors, craft strategic initiatives then mobilize resources including talent. But firms still generate weak strategies and execute poorly.
Hack by Victor Magdaraog on January 20, 2011
Empower employees to create and fund their own initiatives by allocating a portion of their annual bonus pay, matched by the company.
Hack by Kartik Subbarao on January 19, 2011
Our focus will be an internal market for innovative ideas that promotes active work outside of an individual’s core job function.  Because of the tremendous span of time zones and geographies com
How many innovations died within big corporations, whose managers failed to spot a breakthrough idea in unchartered seas of innovation portals and CTOs’ e-mail boxes?
Hack by LBS team 12 on January 9, 2011

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