Posts Tagged ROWE

A recent video on TED illuminates a point that a colleague and I have shared on multiple occasions, including a podcast called “My Business World”.  The new model of business productivity, often referred to as ROWE (results oriented work environment).  The concept is, essentially, to  allow employees to do whatever they want, as long as the work gets done.  Studies and experience are showing an increase in productivity and personal morale.  The intrinsic value of getting something done with the opportunity to control one’s schedule and action plans is a bigger motivator than increases in pay, bonuses or other direct reward/punishment models of the past.  It has been explored and compared to Tim Ferriss’ work with 4 hour work week here.  The big motivator appears to be the fact that people can define their “ideal” lifestyle today and not in waiting for the elusive day of retirement, all while working and being productive, contributing to the economy.

Dan (in the video) also speaks of variations of this that I find quite interesting and extremely valuable form an innovation standpoint.  Innovation is typically a matter of “captured chaotic response”, that is, in the course of living/working, we tend to stumble upon ideas, answers, problems, solutions, etc.  The process of capturing this chaos and ordering it for reproduction is innovation. Many companies, particularly in the tech industry, have implemented innovation strategies that offer a percentage of time or a day or week to work on anything you want.  Google is likely the most well known with their 80/20 rule, 20% of time is spent on any ideas outside of normal work.  This 20% has produced 50% or more of Google’s innovations as Dan tells it.  The natural chaos of individual human endeavor and thought creates substantially more innovation than the ordered workings of any company and that is seen in 80/20-like planning.

These are powerful aspects of the new motivating business model.  It is important to understand the trade-off in emphasis.  Instead of heavy focus and discipline regarding time, meetings, and such, a substantial focus and discipline must be placed on the results, and improvement of them (hence results-only work environment).  This is basically the only indicator of proper performance and further reward/punishment may exist around this metric alone.  Obviously if you are not getting the results required, you likely won’t stick around.

As a business or in defining your business, take a look at information regarding these new models and see if you can implement them for enhanced productivity and improved morale.  It may even be a cost saver as monetary reward is less necessary.  Any additional resources on these concepts? successes or failures?