I just knew that there would be more and more companies jumping on the production based business model instead of the time based model. It just makes more sense in the digital world. What do I mean?
First check out this article from Business Week (http://www.businessweek.com/magazine/content/06_50/b4013001.htm) entitled Smashing the Clock. It is about how Best Buy lets it managers and corporate employees simply get their work done and then let them have their time, instead of being forced to spend time doing “corporate time wasting”
OK back to the production business model vs. the time business model
Results Only Work Environment
This is what I like to simply call the production business model. You get rewarded for your production. You have tasks, goals, or a checklist of items that need to be done. When you have satisfactorily completed them you are done. That is it. Game over, go home and enjoy the day (or like me go to the golf course and enjoy a round). It is very simple.
Benefits
Reduction in Hours
This is good both for employees and employers. I think it is obvious for employees; you get to have the rest of the day off for stress free living. Less stress, more happiness in your job. Get the things you want done. For employers there is no need for your employees to stick around and soak up company resources. Computers and office lights get turned off resulting in savings, paper and other stock items are not forced into use creating tasks that are not needed, and above all people work very efficiently.
Less Stress
This cannot be emphasized enough, and I know I mentioned it above. Less stress levels create happy employees, happy bosses, and longer retention rates for employees. Why is this important? It is expensive to train new employees. If your employees are happy and not leaving you don’t have to spend the extra money in training new employees.
Creative Environment
Creativity is the driver of all good companies. Letting people get on with their lives opens up creativity. People are happy with their job, they are out fishing on a Tuesday afternoon and the next thing they know they come up with a great idea that saves money, or a great way to market a new product, or maybe simply a new product all together. The office environment is very counterproductive for creativity.
Problems
Self Motivated Employees
This does not seem to be a problem, but in reality it is very difficult to find self motivated employees. Let’s face it; most of us work for money, not for the job. It is a difficult mindset to change. Finding employees who are already motivated are difficult to find, and many times difficult to hold on to as they are usually looking for the best situation all the time.
System of Responsibility
There must be in place a system of responsibility. This is usually a completely different business model and it must be implemented before employees are put on a performance only evaluation. Some companies are easily switched over to a responsibility system; others must have massive changes in the structure of the business and management in order for this to happen.
Technology
Although technology is used much more than most people think, many small businesses are not as technical savvy as big businesses. Technology is the key to production based systems. Employees will need laptops and blackberries and that costs money. A system must be created online so that employees can login from anywhere they wish. This also costs money and creates another thing that people need to be trained on. But once the growing pains of technology are overcome the benefits can be huge.
That is the simple overview, and of course each business is unique in their needs, but it is possible to break free from the office and live your life in a very balanced way.
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