Wednesday, March 30, 2011

In Praise of Resource Constraints

The article "In Praise of Resource Constraints" by By Michael Gibbert, Martin Hoegl and Liisa Välikangas in MIT Sloan Management Review raises an important question how to allocate resources effectively. At first site a sound idea will be to allocate resouces according to the needs. But the authors have a different insight at the problem:
It may pay to remember the old Finnish army adage (derived from Finland’s battles against much bigger adversaries throughout the course of its history): “If the heavy armor does not move with four people pushing it, take one man away and let us see if three can do it!”

I would agree, there should be a reason to innovate. But still a sound balance should be kept. This is where an art begins...

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