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September 26, 2008 3:00 AM

The End of Time-Based Management?

By
Lindsay Blakely
(MoneyWatch) 

Tammy Erickson writes about employee values, changing
demographics in the workplace, and how successful organizations work. She
writes the Harvard Business blog
href="http://discussionleader.hbsp.com/erickson/">Across the Ages
and is the author of several
books, including
href="http://www.amazon.com/Retire-Retirement-Career-Strategies-Generation/dp/1422120597/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219690697&sr=8-1">Retire Retirement: Career Strategies
for the Boomer Generation
.
We asked for her honest assessment of
Best Buy's Results-Only Work Environment (ROWE) and its
philosophy of measuring work by tasks accomplished rather than by time spent.

Is ROWE the workplace of the future?


Erickson: The idea of decoupling time [from
results] is the rule of the future, whether it will be in that form or not. We
need to stop measuring work in hours and start measuring it in terms of task or
production. If you look at the history of using time to measure work, it’s
a relatively recent concept starting around the 1930s, when assembly-line
production became too complex to determine what you did or what I did. Prior to
that, people were paid according to how many buttons they sewed: by task. In
the overall scheme of history, the whole hourly thing has just about served its
purpose; I think it will be associated with the industrial economy. It just
doesn’t make sense to pay by the hour to write a piece of software.

Why is ROWE important and relevant right now?


Erickson: Companies are really struggling hard
with people in their 20s [Generation Yers] and 30s [Gen Xers]. The stats on the
number of Gen X women dropping out of the workforce are alarming. A lot of it
comes from an unwillingness to make family sacrifices. Companies are looking
for creative, flexible arrangements for keeping workers in the workforce. I
think that was at the heart of Best Buy’s drive for a more
family-friendly work environment. That’s one thing a lot of Gen Yers don’t
tolerate well: the pace of corporate work. They’re so critical of how
long it takes to get things done and how slow their colleagues are. It’s
very attractive to Gen Yers to be in a ROWE and be able to get work done
anytime, day or night, as fast as they can do it. They don’t have to
stay eight hours if they can get their work done in five. And anecdotally, many
of them are a lot faster at their jobs.

Does a ROWE have any limitations?


Erickson: ROWE obviously has some limitations,
especially in the service economy, where you need people present during certain
hours. Even Best Buy would admit they haven’t figured out how to
apply it in the retail environment. This kind of environment will become more
flexible but not completely ROWE based.

Another
interesting angle is the ethical question of whether it’s fair to
move to a ROWE when different classes of employees do tasks at very different
speeds. If the company went to a ROWE, older employees might have to work 60
hours a week while younger employees work 30 hours to accomplish the same task.
The question is: How do we feel about that? I can argue either way that it’s
fair or not fair. Companies haven’t been able to get comfortable with
that.

Is “face time” in the office overrated?


Erickson: Yep, I do think it is —
with one caveat. We’ve done quite a bit of research and found that
effective work relationships need trust. Most workers over 30 initially develop
trust through face-to-face relationships. Once I trust you, then my need to get
together for face-to-face time is quite minimal. My willingness to collaborate
actually diminishes if I’m forced to spend a lot of time in meetings
with you. One interesting question is: Will 20-year-olds be able to develop
trust without ever meeting people face-to-face? I don’t know the
answer. Maybe they’re already used to doing that online. Sometimes I
think people have meetings just because they feel embarrassed. They think, “Why
did we pay $4.50 a gallon to drive to the office?”

Does ROWE ask more of the managers or the employees?


Erickson: It definitely asks more of managers.
Even with something as simple as flextime, managers say to me, “But
that would make my job more difficult.” Yes, it would! People don’t
want to complicate their own jobs. But by doing it they’re going to
attract more talent and a higher caliber workforce. My suspicion is that a lot
of the evolution of the workforce is on hold as people are preoccupied with the
economy. As the economy picks up speed, and hiring resumes in full force, we’re
going to find there aren’t enough people. Reaching for ways to
attract top talent will gain momentum.

© 2008 CBS Interactive Inc.. All Rights Reserved.
.
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