ROWE, or “Results-Only Work Environment”, is a management philosophy developed by Cali Ressler and Jody Thompson. These former Best Buy HR managers describe ROWE as a work environment in which “people can do whatever they want, whenever they want, as long as the work gets done.” At Best Buy, the implementation of ROWE reported a 35% increase in productivity for the departments that used it.
The term ROWE was coined in 2003 by Ressler and Thompson and its use at Best Buy has resulted in a voluntary turnover rate reduction of 22% to only 2%. Further, it increased the turnover rate of those not producing to 77%.
In practice, at least at Best Buy, it appears the strategy has been successful in rewarding top producers and terminating those who fail to produce.
In a ROWE, everyone is evaluated based upon what they accomplish, rather than how much time they spend on work-related tasks. The advantages of this type of work environment are obvious: no more clock-watching, no more micro-management, no more potential car wrecks as you fight traffic to get to work on time, and no more guilt. The potential disadvantages, however, are less obvious: struggling to produce, working more often in order to get the work done, struggling with time management, and feeling overwhelmed by the pressure of production.
For now, however, it appears the best work setting for a ROWE is an office. But, as the world’s services and business operations become more virtual, it is possible ROWE will become an increasingly viable management philosophy.
Take this brief quiz to see if a ROWE is right for you.
- Which of these describes you best?
- I just need to know the goal and I can figure out how to complete the task
- I need specific instructions to complete a task
- Managing time is:
- Easy for me
- Difficult for me
- I function best when:
- I have flexibility in my schedule and it changes regularly
- I have a routine
- I prefer a boss:
- Who provides general guidance, but is rarely specific
- Who provides structured guidance and directs my work
- In college:
- I started my assignments early and moved on to the next one
- I procrastinated until the last minute and did just what was needed to pass
If you scored mostly 1s, a ROWE environment might be right for you.
If you scored mostly 2s, a ROWE environment may not be the best fit for you.
Let’s hope the 77% who left ‘involuntarily’ did find a place that was a better fit for them. Wonder how BB handled those folks? Did they help them transition in any way?