Management Strategy Analysis: Should You Go ROWE?

Career Management

Results-only work environments, or ROWEs, are becoming a popular management strategy for many businesses. From accounting firms to software developers, ROWE supporters have reported higher profits, higher productivity and greater employee satisfaction.

But is ROWE really an effective strategy for employee management? Let’s take a look at the background of ROWE and how employees have responded to this unique work environment.

 

What Is ROWE?

ROWE strives to improve work-life balance while increasing productivity at the same time. The concept was created by Cali Ressler and Jody Thompson, two former Best Buy employees who wanted to establish a more flexible way to work.

The basic idea behind ROWE? That employees can work wherever and whenever they want to, as long as they meet their goals. That means no 9-5 workday and no mandatory meetings.

Employees don’t even have to show up at the office if they don’t want to. They can work from home or from a coffee shop, at 7 A.M. or midnight — whatever fits best with their schedule and helps them be most productive.

 

Advantages of ROWE

At first glance, ROWE offers a ton of benefits for both employers and employees:

1. Better Time Management

Employees who are given set tasks instead of a set schedule are likely to be more productive. Employees know they have to complete certain projects by a certain time, and it’s in their best interest to complete work as quickly and efficiently as possible.

When employees aren’t tied to a desk for 8 hours a day, they’ll be more productive during the time they are working. (Tweet this thought.)

2. Happier Employees

Employees tend to be happier and less stressed when they’re given the flexibility to work on their own schedule. ROWE allows employees to have a better work-life balance. They can spend more time with family, make time for things they like to do, and prioritize their own health and happiness — without sacrificing productivity.

Many employees also respond well to more responsibility, with less oversight and micromanagement.

 

3. A High-Performing Workforce

ROWE allows employers to separate the high performers from the slackers — the people who sit at their desks all day without really accomplishing anything.

Traditional work environment often allows underperformers to fly under the radar, as long as they’re putting in face time. But with ROWE, individual employees are assigned specific tasks to complete on their own time, making it easy for managers to see who’s performing and who isn’t.

4. Less Employee Turnover

Employee turnover is a bad thing, both for workplace morale and for the bottom line. Employees who are trusted and respected enough to work on their own time, in their own space, are more likely to be loyal to their employer — and more likely to stick around. Workplace flexibility is a unique benefit that isn’t offered by many companies, and employees who have it aren’t likely to give it up.

 

Disadvantages of ROWE

While ROWE offers great advantages, the system does have some serious potential drawbacks:

1. Employee Adjustment

Employees used to a traditional workplace may have trouble adjusting to ROWE. Some may prefer traditional management and not want to the freedom to work on their own schedule. Some people need more guidance when it comes to getting work done.

Others may take advantage of ROWE and use it as an extreme version of paid time off. Still others may work too much and take on too many responsibilities, becoming overwhelmed and overstressed. Managers need to determine whether their workforce has the qualities needed to successfully utilize ROWE.

2. Team- and Industry-Based Limitations

It’s true that ROWE can improve productivity, profit and employee satisfaction — for some companies. But it won’t work for all. It requires the right company — a knowledge-based business in which tasks aren’t location-specific — and the right team members.

For ROWE to work, you need hardworking, driven employees who are comfortable with responsibility, plus leaders who are good at giving effective feedback — and who aren’t afraid to cut underperformers.

 

Who’s Using ROWE?

There’s no way of telling for sure whether ROWE will be an effective way of managing and motivating your employees. But there are some examples of ROWE workplaces that companies can look to when considering whether or not it’s right for them:

1. Best Buy

Employees at the electronics superstore’s corporate office were given the option to work on their own schedule. All meetings were optional, and it was up to the employee to determine when and how they needed to work. However, high expectations for performance were set, and employees had to meet these expectations in order for ROWE to work.

While the company claims that implementing ROWE was a success, Best Buy decided to transition back to a traditional work environment in March of 2013. One potential reason? A lack of guidance from people who had leadership roles under the system.

2. RippleIT

RippleIT implemented ROWE as an experiment in 2012, and they discovered that employees were actually more productive when they were given the option to work on their own schedules.

The web hosting company found they were better able to see the employees who were not performing, as those workers were no longer able to get lost in the shuffle by coming in and punching the clock every day. Using ROWE, problem employees could be discovered and disciplined — or weeded out.

3. Human Services and Public Health

ROWE isn’t just limited to the corporate world. The Human Services and Public Health Department of Hennepin County, MN decided to experiment with ROWE in 2010. While staff members in the Minneapolis office needed to be present for face-to-face appointments, managers determined that only around half of the department’s 13 employees would need to be in the office at any given time.

Employees were initially confused about ROWE, but the freedom to spend more time with family came as a welcome change. Employees are still required to put in 40 hours a week, but they have the power to decide when and where they want to work.

 

Does ROWE Have a Place in Your Business?

ROWE is certainly intriguing, and it comes with a host of potential benefits. However, managers and HR professionals should be careful about implementing the strategy. While there are many advantages to using ROWE, it won’t work in every workplace, or on every team. The successful implementation of ROWE depends upon the willingness of employees to remain productive, and the ability of leaders to provide guidance as needed.

The bottom line? ROWE is effective in some workplaces, but it’s not ideal for every company. If you’re interested in ROWE, try testing it with one team or department within your workplace before you make a decision.

What do you think? Have you ever managed — or worked in — a ROWE environment? Share your experiences in the comments!

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