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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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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
Higher education is fundamental right for a decent livelihood.
Hack by Rajesh Gandhi on December 21, 2010
The infrastructure for access to information still lags significantly behind the infrastructure within which information enters and leaves a company's network. The answer is metrics.
Hack by Kevin Woghiren on December 9, 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
Have an online social network for the company inviting Hacks from all employees in the company by project or department or function.
Hack by Varun Dinodiya on November 27, 2010
Implement a 'Commercial Innovation Bazaar' to create a market for innovation within the company    
Hack by Chary Chigurala on October 2, 2010
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
Workers often find themselves too bound by deadlines and project expectations to have time to collaborate on cool, interesting, but less "high priority" ideas.
Hack by Vijay Karunamurthy on September 20, 2010
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

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