results-based management summary

8/14/2019 Results-Based Management Summary

1/7

Results-Based Management Summary

Employees of all age groups want the flexibility to determine where, when, and how they work Innovative, successful companies including Fortune 500 firms have embraced results-based

management and flexible work as an essential business strategy When they ignore when and how work is done, and focus on results, their employees are more

productive, creative, and successful Employees have less stress, less distractions, less commuting, which means greater loyalty,

engagement, and productivity for companies Results-based management is nothing new or complex Gallups employee engagement research shows that 54% of US workers are not engaged in their

work Weak engagement translates into higher turnover, greater absenteeism, and lower productivity

Across all age groups, flexible work ranked third, just after competitive pay and healthinsurance, as important for happiness on the job

Results-based management creates an atmosphere of trust that solves the problem of having awork force thats increasingly sight -unseen. And, with the help of remote work technology, ithelps employees enrich and balance their business and personal lives.

But good companies work with their people to establish goals, they give them the tools theyneed to meet those goals, and get out of their way

Benefits because results based management:o Requires that an organization really understands its goalso Ensures that all resources are aligned toward those goalso Boosts employee morale, engagement, and loyaltyo Empowers people to be the best they can beo Reduces cross-functional inefficiencieso Democratizes career advancemento Exposes weak linkso Helps attract key talent

It has been shown to:o Save companies between $10,000 to $20,000 per employee a year by lowering real

estate, turnover, and absenteeism costs and increasing employee productivityo Reduce company/employee carbon footprint and fuel usageo Attract the best and the brightest, regardless of where theyo Engage workers who would otherwise not be available (e.g. caregivers, part-timers, the

disabled, military spouses, retirees)o Improve continuity of operationso Increase staffing efficiencieso Save employees thousands of dollars a year in commuting costs


2/7

According to research conducted by WFD Consulting for Corporate Voices for Working Families,workplace flexibility plays a significant role in attracting, retaining, and engaging an hourlyworkforce and enhancing their performance

Successful flexibility programs requires selecting and hiring responsible people, clear lycommunicating expectations, providing them with the necessary information and tools, andthen empowering and trusting them to deliver the required results.

You lead your life and you control your job as opposed to your job controlling you Employee(PNC)

People take ownership of their day as if you have your own business. You get more loyalty. Employee (PNC)

WFDs Innovative Workplace Flexibility Options for Hourly Workers 2009 study looked atsuccessful flexibility practices for hourly and non-exempt workers within five organizations:Bright Horizons, Marriott, PNC, Proctor & Gamble, and a consumer goods manufacturer.

o 86% of the employees currently not using flexibility would be interested in using it wereoffered to them without penalty. 45% w ould be very interested

o 80% reported that their ability to recruit talented employees is enhanced byopportunities to work flexibly

o Employee engagement is 55% higher for those who have flexibility optionso Over 80% of employees reported that work flexibility is an important factor in their

intention to stay with their companyo Of employees with a formal flexibility arrangement, 87% say it is important to themo 60% of flexibility users report that they would be very likely or likely to leave their

company if they did not have the opportunity to work flexiblyo Stress is two times greater for employees who do not have flexible work options than

those who do According to the Sloan Center on Aging & Works Age & Generations Study, when employees

have the flexibility they need, they are more engaged, less likely to feel overloaded, enjoybetter mental health, and feel more positive about their work-family balance.

Only half of employees feel comfortable discussing flex options and roughly 40% of workers fearnegative career consequences if they choose to use them.

When managed well, flexibility can be a strategic tool, not just an accommodation. It caneffectively benefit both employees and employers. Why?

o Over 78% of respondents reported that having access to flexible work optionscontributes to their success as employees to a moderate or great extent

o Ninety percent reported that having access to flexible work options contributes to theiroverall quality of life to a moderate or great extent

Hundreds of research papers point to the same conclusion, human beings have an innate innerdrive to be autonomous, self-determined, and connected to one another. And when that drive isliberated, people achieve more and live richer lives.

Being able to work where and when was appropriate for the task allowed the employees tosqueeze in a couple of extra days worth of work a week without feeling burdened


3/7

Managers were initially skeptical of the idea of allowing employees to work at home and saidthings l ike, If we cant see them how do we know theyre working?. Today, according to Hill,more than 80% of IBM managers agree that productivity increases in a flexible environmentwhen performance is based on results.

The single most frequently asked question we hear from managers of remote workers is Howcan I manage them if I cant see them? says Jim Ware, Executive Producer, Work DesignCollaborative. The answer is conceptually simple: establish a clear outcomes -basedperformance measurement system. Then establish personal performance goals with eachremote employee and hold them accountable. Manage for results, not time spent on workactivities, and it really doesnt matter where or when the work gets done just that its done.

To be successful, every employees goals should be driven by the companys overall vision,says Kenneth Gonzalez, Managing Partner of Engaged Consulting, Inc. Without an integrated

approach to developing performance measures that are based on what the customer wants,companies run the risk of incenting their people to achieve results that are meaningless in termsof the companys success and survival, Gonzalez said. Gonzalez recommends a proper mix ofquantitative and qualitative metrics to ensure that everyone within an organization is focusedon the part they play in serving their customers. Gonzales adds that performance-basedmanagement is an ongoing process, not a one-time event. Goals and results should be reviewedregularly. Communications between managers and employees are essential to help spotproblems and misunderstandings, respond to changing priorities, maintain engagement, ensureemployees have the resources they need o meet their goals, and solidify mutual trust. In otherwords, without a tie-in to organizational goals, you risk working harder and harder, to do betterand better at something you shouldnt be doing at all.

Pisik, Gonzalez, and other results-based management experts agree that for performance goalsto be effective, they need to be:

o Tied to the org anizations core values and overall goals in a way that allows an employeeto see the role they play in the bigger picture an important element in employeeengagement.

o Specific, measurable, and time-specifico Achievable the employee needs to have the ability and tools to meet them. Care

should be taken that the goals of one employee or division are not at odds with those ofothers.

o Regularly monitored to ensure that they continue to align with the companys focus. Just writing a formal flexible work arrangement policy isnt enough, said Yost. A coordinated

flexibility strategy lets a company target the objectives that are most relevant to their business.It can change the fundamental way an organization operates. It can help a majority ofemployees manage their work-life fit. It can reduce the burnout of employees covering globalclients or working global teams. IT can increase productivity by meaningful amounts. It canreduce turnover and absenteeism. IT can improve the bench strength of a diverse pool ofleaders. It can help attract talent. IT can translate into a measurable improvement inenvironmental sustainability. It can reduce real estate, health care, or other costs. And it can


4/7

ensure business continuity in the event of an emergency. All of these results are possible with acoordinated flexibility strategy that lets a company target the objectives that are most relevantto their business. As they rolled out a broader flexibility strategy, they found pockets ofsuccess. When they looked at what made the difference in those areas, they found the mostsuccessful units were using flexibility not just as an HR strategy, but as a business strategy.

Flexible work strategies need to start with why are we working flexibly and what do we wantit to acc omplish says Yost. The BDO Flex vision established the broad outcomes they expectedto achieve from their work+life flexibility strategy in terms of success for both the business andits people. And thats what they measure. But you cant stop there. You have to tackle how dowe need to work and how do we manage our lives differently for those objectives to becomepart of the day-to-day reality. At BDO a consistent process was developed to guide employees tocreate flexible work+life fit plans that are a win for them personally and for the business. In eachoperating group, an innovation framework helps them use that same flexibility in how, when,and where work is done to manage costs, service clients, and find and keep good peopleessentially, work better and smarter.

Results Only Work Environment (ROWE)o With just a little bit of control over their time, people were happier and more

productive o Successes in the one department at Best Buy led to please for help from others. By

2005, 40% of the corporate staff was in a ROWE program.o Even the U.S. Office of Personnel Management is piloting a ROWE program with 400

government employees. Introducing the pilot, John Berry, head of the Office ofPersonnel Management said I want to make government cool again.

First lets establish what ROWE isnt. Its not a workplace flexibility program. Its not atelecommuting program though many people choose to work remotely. Its not a cafeteriaplan that allows you to pick and choose the pieces you like. With Ressl er and Thompson, it s allor nothing and they refuse to work with companies that arent willing to go all the way. ROWEisnt easy either. It requires a complete cultural revamp. It exposes slackers. It demands trust.

Ressler explains the difference is like the difference between high school and college. In highschool, its all about attendance. In college, just showing up isnt good enough. In fact, it rarelymatters. Professors dont care if you show up for class as long as you get the work done. Somepeople handle the freedom well. Others flunk out.

ROWE is focused on:o Results, not face timeo

Acquiring and keeping good talento Weeding out poor performerso Planning within and between departmentso Eliminating non-value-added activitieso Promoting better communication and response timeso Being efficient, effective and nimbleo Using common sense


5/7

ROWE Guidepostso People at all levels will stop doing any activity that is a waste of their time, their

customers time, or the companys time o Employees have the freedom to work anywhere or any way they wanto Every day feels like Saturdayo People have unlimited paid time off as long as their work gets done o Work isnt a place you go its something you do o Arriving at or leaving the workplace at 2pm is not considered coming in late or leaving

earlyo Nobody talks about how many hours they worko Every meeting is optionalo Its okay to grocery shop on a Wednesday afternoon, catch a movie on Thursday, or take

an afternoon napo There are no work scheduleso Nobody feels guilty, overworked or stressed out.o There arent any last minute fire drills. o There is no judgment about how you spend your time.

ROWE participants find they have:o Greater organizational commitmento More job satisfactiono A family friendly cultureo Increased Job Securityo More employee loyaltyo Less work-family conflicto A decrease in negative spillover from work-to-familyo Sleep more than seven hours a nighto Improved quality of their sleepo Time to go to the doctor when sicko More frequent exerciseo More energy

The ROWE Environment:o Treats people like responsible, professional adultso Results in low turnover of great/good performerso Creates high turnover of under/poor performerso

Creates high turnover of under/poor performerso Increases productivityo Reduces last minute requests due to poor planningo Reduces wasteful activity and drives efficiencyo Gives companies a competitive advantageo Force managers to get clear on measurable

ROWE can:


6/7

o Retain the best talento Maximize creativityo Foster innovationo Improve response to customerso Increase customer satisfactiono Expand individual and team capacityo Improve engagement and moraleo Optimize the use of current tools and technology

Other ROWE successes:o Fortune 100 Retailer (not including customer-facing positions): 35% increase in

productivity, 52 to 90% decrease in voluntary turnover, 56 to 100% increase ininvoluntary turnover (because ROWE exposes slackers)

o Financial Services Firm, 3 months post- migration 18% increase in revenue per full -timeemployee, 250% increase in profit per full time employee, 14% improvement inaccuracy rates

o National non-profit: 6 months post-migration: 80% increase in job satisfaction andengagement, 40% reduction in voluntary turnover, 74% report improved teamwork,69% report improved communication, 93% report feeling more in control of their life,62% say they understand their job duties better, 75% say theyre more productive,100% say theyre less likely to look for another job

Union leadership has taken an active role in working with management to s ort out theproblems that arise and to work collaboratively on finding solutions, with both sides realizingthere is a mutual interest in making ROWE a success.

Dick Finnegan, President of Finnegan Mackenzie Building an environment of trust is asimportant or more important than pay, benefits, and other expensive investments organizationsmake in retaining talent. Its the make -it or break- it retention skill for supervisors.

Susan Seitel, President and Founder of WFC Resources The Great Place to Wor k Insitutereports that employees who feel trusted and trust their companies in return tend to havehealthier lives outside of work. When they are at work, theyre there because they want to beand theyre ready to contribute. But trusted to do what? T his is the question too many of us failto answer. Good managers work with their staff to set clear and measurable goals, asking Howwill we know when this has been accomplished successfully? for each. Theres a reason whyRonald Reagan loved the phrase trust but verify. It should be the mantra of every manager.

Patricia Kempthorne, President/CEO, Twiga Foundation, Inc My favorite quote from a

manager of a small power plant is I give my employees workplace flexibility to release them todo their job s!

Elham Shirazi, Principal, e-Planning Teleworking merely extends the location of work, the rulesfor measuring productivity dont change.

Conclusions: Work is no longer about places, its about people. The work -anywhere culture hashelped companies ex pand their talent pool, and attract top performers. Its reduced their realestate, absenteeism, turnover, and healthcare costs. Its increased their competitive advantage.


7/7

Its improved collaboration and fostered teamwork. Its exposed under performers an deliminated workplace saboteurs. It has uncovered weaknesses and improved efficiency. Itshelped companies reduce their carbon footprint. And its ensured their ability to servecustomers in the event of a disaster. Perhaps most importantly, this new way of working hasimproved the lives of a companys most important asset, its people. Demographic, cultural,

economic, and technological realities have forever changed the nature of work. Leading changeagents agree, companies that havent culturally adopted that results are what matter will be leftin the dust behind those that have.

About the Telework Research Network: Using the latest Census data, and assumptions fromdozens of government and private sector sources, theyve developed a model to quantify th eeconomic, environmental, and societal potential on telecommuting for every city, county,Congressional District, and state in the nation. Its available free on the web and has been usedby company and community leaders throughout the U.S. and Canada to quantify the extent towhich telecommuting can reduce greenhouse gases and petroleum usage, save money, improvework-life balance, increase employee loyalty and turnover, reduce absenteeism, increaseproductivity, reduce highway congestion and traffic accidents, and much more.

results-based management summary

Documents