I like the whole notion of leveraging prediction markets decision tools for improving companies. If executed properly you can leverage experts within a company and outside of the company to improve corporate management’s tactical and strategic plans.

There are consulting firms that have been using this approach since mid-2008. One company is BitInsight. BitInsight was founded by Steve Diamond and Patrick McHugh, both of Massachusetts. I believe the use of predictive decision tools is effective for restructuring a company.

The keys to successfully using predictive decision tools are: management needs to be willing to look deep within the company and management needs to hire external consultants to serve as referees.

The tools will work for those companies that have not yet reached that level of distress in which traditional restructuring processes are used. However, prediction markets decision tools are ideal for companies seeking to improve their current situation.

Troubled companies like Yahoo are ideal candidates for using prediction markets decision tools. Yahoo is not even close to filing for bankruptcy but the company is losing market share and looks like it is spinning out of control.