Unlimited Paid Vacation Time For Buyers

From http://www.bnet.com/2403-13059_23-237128.html?promo=713&tag=nl.e713

“In a Results-Only Work Environment, people can do whatever they want, whenever they want, as long as the work gets done.” This is not simply company-sanctioned flextime. A true ROWE has unlimited paid vacation time, no schedules, no mandatory meetings, and no judgments from co-workers and bosses about how employees spend their days. In other words, managers trust employees to get their work done and do not mandate — or even comment on — when, where, or how it happens. Because everyone is evaluated based on what they accomplish, as opposed to how much time they spend looking busy at their desks, it becomes clear very quickly who is actually getting work done and who isn’t.

And an example

For example, after migrating to a ROWE, Best Buy’s strategic sourcing and procurement team boosted employee retention by 27 percent and shed 10 low-performing employees. But the real proof was the huge uptick in performance: The department, which buys materials for the corporate environment, saw a 50 percent increase in cost reductions over two years.

Now I suspect that there is a bit more here than meets the eye but nevertheless it’s a story worth keeping in mind for buyers.


2 responses to “Unlimited Paid Vacation Time For Buyers”

  1. ROWE certainly sounds interesting. And for companies that can appropriately measure output, I’m guessing that it IS a boom to results and performance.

    But neither buying nor procurement are there yet. I’m personally working on a way to measure performance of contracts folks and buyers, having done years of research into finding ways to measure these virtual immeasureables. Cost savings, albeit the easy way to try to measure performance, doesn’t measure quality. I can easily obtain significant cost reductions if I sacrifice the overall terms of the contract with any single supplier.

    So until we have the way to measure objective performance balanced across more than one deal metric, I think it’s a little soon to be implementing ROWE in a strategic sourcing environment and calling it a success.

    I’m also quite skeptical of the 77% uptick in involuntary terminations – calling the project a success as a result. Sounds more like they have a hiring problem to me if the people they hired aren’t able to do the job they were hired to do.

    Just my $0.04 worth. 🙂


  2. Hi Jeff

    Yes, I’m also sure that there is more to this than meets the eye. And I share your concerns about how really to measure the value add of a procurement team.

    Nevertheless – it is an interesting data point if Best Buy believe that ROWE can work well in procurement.

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