Management 3.0 Practices: Internal Crowdfunding

Put the best ideas forward with an innovation stock market

“Many organizations struggle with self-education of employees. A very effective way to do learning more fun is people organize exploration days. Sometimes called of hackathons or ShipIt days, these days are created to invite employees to learn and to develop for themselves by running experiments and exploring new ideas.”

CreativityAndInnovation_Slide28_Sharing-01And thus begins the fifth chapter of management guru Jurgen Appelo’s, Managing for Happiness. This chapter dives into how to use Explorations Days and Internal Crowdfunding for exploration and self-exploration. Why? Because people don’t explore if they follow a leader or a crowd.

The idea of an internal crowdfunding came when Jurgen was managing a large team of development and tried to create an innovation committee that should filter the best ideas to move forward to new projects. What happened was that the committee was becoming overwhelmed by ideas and could choose only a few. The employees were discouraged when they felt as if their ideas for the future of the company was being ignored. So the ideas stopped completely.

Internal crowdfunding is like a stock market innovation, allowing employees to bid on ideas they think are the best. Any employee may submit an idea, but she or he has to convince colleagues of their value. Teammates can vote, score or even get virtual money to bet and choose the winners.

You get the best of your employees when you treat them as entrepreneurs and as investors in the future of your company.

“The role of management is not to select the best ideas; It is to create a great system that allows the best ideas emerge.”

Management 3.0 in Action: Internal crowdfunding tips & case stories:

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