Using Resource Allocation to Promote Deftness

If you want to shape the way an organization behaves, an extraordinarily robust conclusion from academic research is that the resource allocation process is key.1 Firms built to thrive under transient-advantage conditions handle resources differently from firms designed for exploitation. In an exploitation-oriented firm, reliable performance, scale, and replication of processes from one place to another make a lot of sense because you can operate more efficiently and gain the benefits of scale. Resources, therefore, are directed to support these goals, and changing these resource flows is painful and difficult. A transient-advantage-oriented firm, on the other hand, allocates resources to promote ...

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