Guest blogger Abby Perkins, Managing Editor at Talent Tribune, a SoftwareProviders.com blog, discusses the advantages and limitations of the results-only work environment.

New management strategies, like self-managed teams and results-only work environments (ROWEs), are helping 21st century companies reinvent the workplace. For many modern businesses, it’s now less about the process and more about the results. The idea? Increase employee flexibility and satisfaction, while improving profits and productivity.

That’s the basic concept behind ROWE: employees should be evaluated and compensated based on the work they get done, not the time they spend doing it.

The evolution of ROWE

Initially developed by two Best Buy employees in the early aughts, ROWE offers employees total autonomy over their work schedules, locations and methods. They can work wherever, whenever, and however they want. There are no set schedules and no mandatory meetings. Employees are only responsible for meeting goals and delivering results – how much time they spend at their desk or in the office doesn’t matter.

ROWE worked well at Best Buy for nearly a decade – the company saw happier employees, better productivity, and lower employee turnover. However, the company eventually abandoned ROWE in early 2013, instead adopting an "all hands on deck" approach that required all workers to be present and pitch in in the office.

Who’s using ROWE?

Best Buy isn’t the only company who has given ROWE a shot. Many others have embraced the ROWE model, and haven't looked back.

RippleIT, an IT, web hosting and cloud services company, saw an "astonishing turnaround" in productivity and profitability just two years after implementing ROWE. According to leaders, the company began doing the same amount of work with about 60% of the staff.

Marketing software provider Sailthru is another example. According to COO David Blanke, ROWE fit well with the company’s mentality of empowerment, challenge, and individual responsibility. Blanke says that under ROWE, employees are more committed, more communicative and more productive.

And ROWE isn’t just for corporate America. Even a Human Services agency in Minneapolis, Minnesota has successfully adopted the ROWE model. The Human Services and Public Health Department of Hennepin County has reported extreme spikes in productivity and employee happiness.

Advantages of ROWE

What exactly can ROWE offer your business? Here are five advantages of adopting a results-only approach to workforce management:

1. Less micromanagement. ROWE eliminates the need for micromanagement, a counterproductive practice that dilutes the focus and the overall productivity of both manager and managed.

2. Empowered, engaged employees. The autonomy and responsibility ROWE provides leads to greater employee empowerment, as well as increased engagement, satisfaction, loyalty and long-term success. An added benefit? ROWE often reduces employee turnover.

3. A focus on what matters. ROWE places importance on what really matters most: getting the job done. Rather than being tied to a desk for a certain number of hours a day, employees are given the latitude they need to succeed, and they’re rewarded for initiative, innovation, and results.

4. Greater visibility. ROWE allows managers to better see and deal with underperformers – the people who may have previously slipped under the radar by simply putting in face time while accomplishing relatively little in the way of real contributions to the organization.

5. Better motivation. A results-only work environment incentivizes and motivates the real producers, whose contributions may go unrecognized if they’re forced to share credit with non-producers who are simply along for the ride.

Limitations of ROWE

ROWE can be incredibly successful – for a certain type of business and a certain type of team. However, it does have limitations.

ROWE is designed for workplaces that don't require an employee's physical presence at an office, store, or other workplace. For example, certain positions in industries like retail, hospitality and healthcare won’t be able to benefit from ROWE workplaces.

ROWE also requires the right individual team members. Employees that succeed under ROWE are motivated, driven, committed and comfortable with responsibility. Before implementing ROWE, be certain that your employees aren’t the type to take advantage of flexible scheduling and use it as an excuse to not produce.

Is ROWE right for you?

Not sure that a full-on ROWE would work for your business? Try another variation of a flexible work schedule, or make it a "results-oriented work environment" instead of a "results-only work environment." You can still focus on setting goals and achieving results, as well as providing as much autonomy and flexibility as possible, without completely abandoning a traditional workplace structure.

In the end, the success of ROWE depends on the ability of management to set clear objectives and accurately assess employee performance. Managers need to be able to effectively communicate their expectations to employees, as well as hold employees accountable for achieving the expected results.

The bottom line? ROWE represents a subtle but crucial shift from managing the employee to managing the employee's work. And this shift isn’t easy – it requires work and adjustment on the part of both employers and employees. But if you’re willing to try something new when it comes to motivating your employees and maximizing productivity, ROWE could be worth a shot.

Have you ever managed – or worked in – a ROWE environment? What was your experience?

Abby Perkins is Managing Editor at Talent Tribune, a SoftwareProviders.com blog dedicated to all things HR.