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BusinessWeek’s Top 10 Drivers of Change in 2010

Feb 16, 2010 » by Cali & Jody

The BusinessWeek Corporate Executive Board (CEB) just dropped some knowledge on its readers with their Top 10 Drivers of Change in 2010. The CEB isn’t afraid of business jargon, but once you translate away the nonsense, there are some great ideas in here.

Increases in information requires more judgment from decision makers
Executives have been buried under a flood of information for years, but the exponential growth in data systems continues to exacerbate this trend. As a result, companies should look to cultivate and exploit asymmetries in high-quality information and build robust information filters based on unbiased judgment and experience.

ROWE translation: focus on results not on activities

We’re not sure what it means to “cultivate and exploit asymmetries” but it’s true that it’s more important than ever to build “robust information filters.”

One of the best ways to do this is to start asking employees what information is important.

Too often what’s deemed valuable information comes from the top down. Of course management has a right and a need to know what is going on in the organization, but if employees are spending as much time documenting their work as they are doing their work, then something is amiss.

Sometimes you simply need to take a leap of faith. Establish an outcome, trust your people and let go.

Markets reward long-term strategic focus
Investors (and boards) will grow skeptical over the long term of companies that rely on share buybacks to boost stock price, rather than demonstrate a strong long-term growth strategy. To avoid this, align senior executive performance objectives to longer-term corporate strategy objectives.

ROWE translation: no more fire-drills

Long-term strategy doesn’t have to happen only at the executive level. If you trust your employees and give them more control over their time then they can become your ally in executing (and even creating) long-term strategy.

In other words, if people are running around like chickens with their heads cut off responding to leadership and management’s every whim, then they can’t do their jobs.

In this kind of organization, people get cynical about what their real purpose is. You can “align senior executive performance objectives” all you want, but if your employees feel like trained monkeys then they you won’t be working toward any long-term goals.

A new war for talent commences
Corporate Executive Board data shows that 25% of high-potential talent have expressed interest in leaving their companies—up 13% from non-recessionary periods. Companies must develop high-potential employee engagement plans and maintain robust pipelines of quality talent in in order to win the coming talent war.

ROWE translation: schedule control tells them that you really care

If you really want a “robust pipeline of quality talent” then you have to treat people right, and that doesn’t just mean paying them well.

The smartest, most talented people in the world all have one thing in common: they want to be treated like adults. Give them clear goals, throw down a challenge to exceed those goals and then get out of the way.

Babysit a grown-up and you get a baby. Treat a grown-up like a grown-up and you’re potentially turning loose a mega-performer.

  • Concerned employee

    “Babysit a grown-up and you get a baby. Treat a grown-up like a grown-up and you’re potentially turning loose a mega-performer.”

    Great post!

    This is so true. In a traditional and confusing work environment, the employee’s voice often goes unheard. No matter what higher management is preaching, the tendency is to continue doing “business as usual.” For all the beautiful things higher management advertises, an actual philosophy is needed to drive the change. ROWE is it. A culture without trust, respect, and freedom, will not advance. The successes we have been hearing about ROWE are a result of people discovering something inspirational and freeing. Once that life change is experienced, there is no going back. The culture adapts and thrives, because people can live their lives in a way that meets work expectations and satisfies personal desires.

  • Persephone K

    Wow… this post speaks to me on a very specific and personal level. I could list countless examples (many of which happened today or in the very recent past, plus many more over the past few years) for each of the sub-topics from this post. I especially like the part where you say, “…if employees are spending as much time documenting their work as they are doing their work, then something is amiss.” I can honestly say that I spend more time documenting my work than I do doing it. Scary. I could go a step further and say that the work I’m actually asked to do isn’t remotely close to what I should be doing. Scarier. I work for an organization where my job position was essentially funded and mandated by powerful forces outside of the org, but those managers within the org charged with directing me, don’t actually understand why I’m there, so needless to say, I spend a lot of time doing “other” things not remotely close to what I was hired to do. Its sad. Depressing even. Really depressing. And it doesn’t have to, and should be that way.

    This trained monkey says, something’s gotta give, cause I can’t keep it up the way things are now. Sadly, my bosses wouldn’t know the difference if I did leave. They could just hire a less vocal trained monkey to do useless tasks that make little difference to the bottom line. :)