Extract: [Multiply the sources of funding for new initiatives. In most companies there is a monopsony for new ideas. (You’ll remember that a monopsony is one buyer and a monopoly, one seller). All too often there’s only one place for an employee with a cool new idea to go for funding—up the chain of command. If the project doesn’t dovetail with the boss’ priorities or prejudices, it won’t get funded. This paucity of funding sources squelches innovation. As an analogy, imagine what would happen to innovation in Silicon Valley if there were only one venture capital firm. It’s not unusual for a would-be entrepreneur to get turned down half a dozen times before finding a willing investor—yet in most companies, it takes only one nyet to kill a project stone dead. The solution here isn’t an internal venture fund or incubator. That doubles the number of funding sources, but doesn’t go far enough. In a large company, there will be hundreds of people who have a discretionary budget of more than $100,000 per year. Imagine giving each of these individuals permission to invest 2 or 5% of their budget in any project that seems promising. Suddenly internal entrepreneurs would have dozens of “angel” investors they could tap for funding, and no longer could a single reactionary deep six a new idea. To be nimble, a company must have a resource allocation process that is more Silicon Valley than Soviet Union.]
Extract: [Honor resilience-friendly values. The Internet is the most adaptable thing human beings have ever created. From Google to Craigslist to Digg, and from YouTube to Flickr to Facebook, the Web has morphed in ways that few of us would have imagined a decade ago. It has also spawned a host of amazing new social technologies, including crowdsourcing, folksonomies, opinion markets, wikis, mash-ups and tweets.]
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