Best Buy: Discontinuing ‘Results Only Work Environment’

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Case Details:

Case Code: HROB164
Case Length: 11 Pages
Period: 2003-2013
Organization: Best Buy
Pub Date: 2013
Teaching Note: Not Available
Countries: US
Industry: Retail

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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“They’re doing the same things companies do when things aren’t going well: ‘We’d better get everyone back in the office.’ It’s a knee-jerk reaction to feeling out of control.”

– – Jody Thompson, Co-Creator of ROWE, in March 2013

"“It makes sense to consider not just what the results are but how the work gets done. Bottom line, it’s ‘all hands on deck’ at Best Buy and that means having employees in the office as much as possible to collaborate and connect on ways to improve our business.” ".

– Matt Furman, Spokesman of Best Buy, in March 2013.

In March 2013, leading retail chain Best Buy discontinued its celebrated HR program, the Results Only Work Environment (ROWE). The decision to discontinue the program was taken by its new CEO Hubert Joly (Joly). The ROWE was introduced in the year 2005 by two employees in the HR department of Best Buy in response to the heavy attrition that the company was facing. Best Buy had traditionally put heavy emphasis on long working hours for its employees. This led to employee stress and gave little scope for work/life balance. As a result, many employees started leaving the organization. They cited high stress as the reason. The ROWE was introduced experimentally in two departments of Best Buy in the year 2003.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

Under the program, managers of the departments were encouraged to try flexible work scheduling and trust their team members to work flexibly. Employees were given full autonomy in choosing their working hours as long as they showed results. The ROWE gave good results and led to a drastic fall in attrition and improvement in productivity.

The good initial results led to the program being extended to all the departments in the company. The ROWE gave good results at the corporate level too. Turnover at the company fell by 90 percent within four years of implementation of the program and productivity improved by 35 percent. The program also led to several non-quantifiable benefits like higher retention of its highly talented employees and attracting the best talent through its recruiting programs... ..

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