Framework: Internal Market Economy System

1. Philosophy & Vision

• Core Values: Autonomy, Accountability, and Shared Prosperity.
• Operational Philosophy: Implementation of a "Small Society" within the corporation to foster an entrepreneurial mindset.
• Expected Outcomes: Maximizing motivation, optimizing resource allocation, and accelerating decentralized innovation.

2. Organizational Units & Roles

• Cell-Based Classification:

• Revenue Cells: Teams focused on existing services with steady cash flow.

• R&D/Investment Cells: Teams focused on future tech or new ventures (funded internally).

• Platform/Infrastructure Cells: Teams providing shared services (HR, Finance, IT, Design) to other cells.

• Rights & Responsibilities: Autonomy in budgeting, hiring, and strategic decision-making within the cell.

3. Work Valuation & Tracking (Work Log)

• Ticket-Based Management: Utilizing "To-Do Ticket Services" as the primary source of truth for work contributions.

• Standardized Valuation: * Weighting systems based on Complexity (Story Points) and Business Impact.

• Adjusting value based on urgency or specialized skill requirements.

• Quality Assurance (QA): Verification protocols to ensure work logs translate to actual value before distribution.

4. Profit Distribution & Compensation Logic

• Definition of Distributable Profit: Gross Revenue - (Direct Costs + R&D Reserve + Corporate Overhead).
• Three-Tier Distribution:

1. Corporate Level: Reinvestment in infrastructure and long-term R&D reserves.
2. Team/Project Level: Operational budgets and collective performance bonuses.
3. Individual Level: Incentives proportional to Work Log contribution (Ticket weights).

• Standard Distribution Ratios: Pre-defined percentage split between the company, the team, and the individual.

5. Internal Transactions & Collaboration

• Internal Transfer Pricing: Fixed rates or "service menus" for cross-team support.
• Cross-Project Profit Sharing: Mechanisms for a team to receive a percentage of another project’s revenue when providing specialized support.
• Internal Service Agreements (ISA): Simplified contracts between teams to define scope and revenue-sharing terms.

6. Internal Investment & Incubating

• Venture Formation: Process for spinning up new teams with seed funding from the corporation.
• Infrastructure Access Fees: Initial "tax" or investment fee paid by new teams to utilize existing corporate assets.
• Internal Angel Investing: Allowing profitable teams to invest their surplus into R&D cells in exchange for future revenue dividends (Exit/ROI).

7. Risk Management & Safety Net

• Minimum Safety Net: Guaranteed base salary to ensure livelihood regardless of project success.
• Debt & Bankruptcy Limits: Defined thresholds for team debt and protocols for dissolving underperforming cells.
• Ethical Governance: Anti-monopoly rules (preventing one team from hoarding resources) and conflict resolution boards.

8. Operating Infrastructure & Tools

• Real-time P&L Dashboard: Visualizing profit/loss for every team and individual in real-time.
• Automated Settlement System: Monthly/Quarterly automated distribution of incentives based on work logs and revenue data.
• Governance Committee: A rotating board of members to refine system rules and resolve internal market disputes.