Best Buy's ROWE: Organizational Change Management Models

Introduction: Best Buy's Shift to ROWE

One of the most notable recent examples of successful organizational change at a major corporation is Best Buy's shift to a Results-Only Work Environment (ROWE). In the ROWE model, workers are judged solely on their output, not on how many hours they log at company headquarters. This represents a complete departure from the previous organizational culture and the way employees had been valued at Best Buy before ROWE was implemented. Previously, workers were encouraged to take pride in how early they arrived at the office and how late they stayed. Under ROWE, measurable output alone determines how workers are valued. "Employee productivity has increased an average of 35% in departments covered by the program," and the implementation of ROWE "has forced managers and employees to be really clear about what needs to be accomplished" (Brandon, 2007).

The Seven Phases Change Model Applied to Best Buy

The first change management framework applied to Best Buy's ROWE initiative is the Seven Phases Model developed by Grover and Kettinger (cited in Major Change Frameworks and Models, n.d.). This model provides a structured lens through which to examine each stage of the change process, from initial strategy through to continuous improvement.

Strategy Linkage and Change Planning

Strategy Linkage

Before ROWE was implemented, Best Buy was in a serious predicament: its best managers were leaving, particularly women, because of the difficulty of achieving an effective work-life balance. Additionally, all employees — male and female — were reporting high levels of burnout. "Two managers — one in the properties division, the other in communications — were desperate. Top performers were complaining of unsustainable levels of stress, threatening business continuity just when Best Buy was rolling out its customer centricity campaign in hundreds of stores" (Smashing the Clock, 2006, BusinessWeek). The solution was found partly through ingenuity and partly through technology: "wireless broadband was turning the world into one giant work kibbutz" (Smashing the Clock, 2006, BusinessWeek). The new model was to judge workers on output, whether the work was completed on-premises or on a laptop at a child's soccer game.

Change Planning

Changing the workplace culture came slowly. "Managers in the old mental model were totally irritated" (Smashing the Clock, 2006, BusinessWeek). Rather than being introduced in a top-down fashion, change was implemented division by division, beginning with the initiative of the two mid-level managers. However, as the greater productivity of ROWE divisions became evident, higher-level managers began to take notice.

Process Pathology, Social and Technical Redesign

Process Pathology

To ensure that the new change would be accepted, the pathologies of the former system were documented, and the ways in which the new system alleviated those problems were also chronicled. For example, "voluntary turnover among men dropped from 16.11% to zero" (Smashing the Clock, 2006, BusinessWeek). Despite the fact that ROWE was in sharp contrast to the previously existing workplace culture, it was difficult to argue with such success. "Offices encourage the wrong kinds of habits, keeping people wrapped up in a paper, pre-wireless mentality as opposed to pushing employees to use technology in the efficiency-enhancing way it was intended. Offices also waste space and time in an age when workers are becoming more and more place-neutral" (Smashing the Clock, 2006, BusinessWeek).

Social Redesign

The most difficult aspect of ROWE was changing the workplace culture. Many workers, particularly older employees, insisted that face-to-face interactions at corporate headquarters were essential, and resisted ROWE. The original managers who implemented the program oriented workers to the ROWE commandments, made gentle fun of those who were obsessed with face time, and made the case that ROWE enhanced rather than inhibited overall productivity. They created what came to be known as the thirteen ROWE commandments. "No. 1: People at all levels stop doing any activity that is a waste of their time, the customer's time, or the company's money. No. 7: Nobody talks about how many hours they work. No. 9: It's OK to take a nap on a Tuesday afternoon, grocery shop on Wednesday morning, or catch a movie on Thursday afternoon" (Smashing the Clock, 2006, BusinessWeek).

Technical Redesign

The adoption of ROWE was stimulated and made possible by wireless technology and the ability of individuals to work virtually, using laptops and home computers. Mandatory staff meetings were banned in favor of allowing workers to work anytime, anywhere.

Conclusion

The Best Buy ROWE case illustrates that when organizational change is organic to some degree, rather than imposed in a hierarchical fashion, it is less likely to be experienced as a loss. The Seven Phases Model provides a more accurate and nuanced framework for understanding Best Buy's transformation than the Loss Response Cycle, because the change was driven from the middle of the organization outward, supported by measurable evidence, and aligned with technological trends already shaping employees' lives. The lessons learned from Best Buy's experience suggest that change management is most effective when it addresses real pain points, documents the failures of the old system, and builds a compelling case for the new approach before resistance can solidify.

References

Brandon, J. (2007). Rethinking the time clock. CNN Money / Business 2.0.

Major change frameworks and models. (n.d.). [University course materials].

Smashing the clock. (2006). BusinessWeek.