 Most managers believe the best way to evaluate direct reports is to measure results. However, few actually evaluate employees based on that. Instead, most managers reward employees based on time logged in at the office or how busy they appear while at their desk. As a fix for this common problem, Cali Ressler and Jody Thompson, former Best Buy HR managers, developed the Results Only Work Environment (ROWE).
Their philosophy is based on the premise that giving employees complete control over their time would result in an increase in productivity. A true ROWE consists of unlimited paid vacation, no schedules, no mandatory meeting and no judgment from co-workers and bosses. Basically, employees are trusted to perform their responsibilities without managers mandating where, when or how it happens.
Departments within Best Buy’s headquarters that implemented a ROWE reported an average productivity increase of 35 percent. At the same time, ROWE exposes underperformers who at one time could get away with contributing very little. The net result is a stronger team that can do more with less.
While this system has had great results at Best Buy’s corporate headquarters in Minneapolis, it’s not the answer for increasing productivity in every company. “ROWE obviously has some limitations in the service economy, where a number of jobs require coverage, like dealing with people in a hotel or retail store,” says Tammy Erickson, author of the Harvard Business blog Across the Ages. Also, a ROWE is not suited well for industrial environments or time driven workplaces, such as doctor’s offices or stock brokerages, that rely on other factors such as patients or stock markets.
Even for companies in which a ROWE would work there are requirements involved. This system requires mature goal-oriented managers that have the ability to articulate what they desire accomplished, and employees with self-discipline. Even for workers who choose to go into the office every day from 8 to 5, a ROWE necessarily requires more self-motivation because managers no longer play the role of supervisor.
With this system in place, Best Buy experienced productivity gains and saw their teams communicate and plan more effectively. The goal is to properly communicate goals and tasks to employees, and then trust them to complete their work by whichever means they deem necessary, resulting in a more productive, team-oriented environment.
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