Question
Metered funding plays a crucial role in fostering a scarcity mindset and cross-functional collaboration. It provides teams with the freedom to utilize funds, but with strict criteria that must be met to access more funding. This approach enforces a scarcity mindset, encouraging teams to use resources wisely and efficiently. It also promotes cross-functional collaboration as teams need to work together to meet the funding criteria. Furthermore, metered funding reduces middle-management interference, allowing teams to focus on their tasks. To maximize its effectiveness, metered funding should be paired with growth boards, which hold teams accountable and approve the next round of funding, creating a direct link between a project's financing and its progress.
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In contrast, metered funding gives teams the freedom to spend the money, with strict criteria that must be met to unlock more, and an emphasis on validated learning. It enforces a scarcity mindset, is conducive to cross-functional collaboration, and reduces middle-management interference. To be most effective, metered funding should be paired with growth boards – groups of people to whom the teams are accountable and that sign off on the next round of funding. This creates a direct relationship between the financing of a project and its progress.
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