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THE BENEFITS OF INTERNAL MARKET ECONOMICS
- Cut costs strategically by eliminating marginal deliverables, rather than across-the-board cuts that damage the enterprise's ability to do anything well.
- Post-cost-cutting, ensure that all remaining resources are in the right place and aligned with the enterprise's more focused strategies.
- Decide budgets based on ROI and strategic alignment, rather than arbitrary benchmarks like last year's budget.
- Clearly define the specific accountabilities (deliverables) which are expected of each department for a given level of funding.
- Understand the full, enterprisewide cost of strategic options.
- Improve execution by ensuring that all the elements of strategies are fully funded, and that all departments are clear on their contributions.
- Make the annual business/budget planning process a meaningful dialog that focuses all departments on their key deliverables.
- Cultivates an empowered, accountable, entrepreneurial culture.