How did a Fortune 100 company increase productivity at headquarters by a third while decreasing voluntary turnover (corporate euphemism for quitting) as much as 90%?
Best Buy Co, Inc., the leading electronics retailer in the US, used to be known for its killer hours, herd-riding bosses, and high turnover. Now it is home to a workplace revolution called ROWE, for “results-only work environment,” that seeks to demolish decades-old business dogma that equates physical presence with productivity.
In a ROWE, people do whatever they want whenever they want as long as the work gets done. In the park or in a coffee shop, At midnight or 3 a.m. or on Sunday. There are no schedules. No mandatory meetings. In short, work is no longer a place where you go, but something you do.
There isn’t any customer satisfaction without employee satisfaction
It seems to be working. Since the program’s implementation, average voluntary turnover has fallen drastically. Meanwhile, Best Buy notes that productivity is up an average 35% in departments that have switched to ROWE. Employee engagement, which measures employee satisfaction and is often a barometer for retention, is way up too, according to the Gallup Organization, which audits corporate cultures.
The crazy thing is that ROWE wasn’t authorized by the CEO, Brad Anderson, but began as a “guerilla” initiative nurtured by innovative employees that eventually transformed the company (to be sure, Anderson encourages such bottom-up, stealth innovation).
Ultimately, for Best Buy, the new approach to work is about staying competitive, not just helping its employees. Like many other companies facing global competition, Best Buy expects more training, more initiative, more creativity from all its employees.
A big part of ROWE involves innovative use of technology and tech companies have been going bedouin for several years. At IBM, 40% of the workforce has no official office; at AT&T, a third of managers are untethered. Sun Microsystems Inc. calculates that it’s saved $400 million over six years in real estate costs by allowing nearly half of all employees to work anywhere they want.
Once people start to challenge the absurdities of the workplace, they start to realize that there is no reason why they can’t deliver results on their own terms. The ripple effect a ROWE creates in a team, department or organization is huge, but the core idea is very simple: praise the outcomes, not the behavior.
For more information there is a TIME article on ROWE and Best Buy
