Business Case

Contents

Section1. ExecutiveSummary

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3 3 4 4

1.1CultureRx 1.2ResultsOnlyWorkEnvironment 1.3ROWEvs.FlexibleWorkArrangements 1.4ROWECharacteristics

Section2. TheCaseforChange

5
5

2.1TheChallenge

Section3. CaseStudyResults

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6 7 7
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3.1TalentRetentionProductiveTurnover 3.2Productivity 3.3EmployeeExperience

Section4.Summary

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8

4.1Summary

Section5.Appendices

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9 9 10 11 12

5.1ROWEandCommunicationaStudy 5.2TheUniversityofMinnesotaStudy 5.3FinancialServicesFirmCaseStudyResults 5.4Fortune200RetailerCaseStudyResults 5.5NonProfitOrganizationCaseStudyResults

Section1. ExecutiveSummary 1.1CultureRx

CultureRxiscommittedtohelpingorganizationstakeadvantageofthenextgreatwaveofchangeinthe globalworkplace:themovementtoROWEResultsOnlyWorkEnvironment. CultureRxconnectsROWEwithindividuals,smallgroups,departments,divisions,orentire,large organizationsthroughitsproductsandservices. ThisrevolutionaryapproachtoworkplacecultureisthecenterpieceofourmissionatCultureRx.Weare committedtoemployeesbeingvestedinthebigpicturethroughanewlifestyle;anewwayofthinking;a methodofengagementandanewyardstickoftheircommitmenttotheworkplace andtheirperformance. CultureRxbasesitsworkinanewpersonalbrandengagementstrategyonthebeliefthattrulygreat brandsarebuiltfromwithintheorganization,onepersonatatimeandthattheyarebestbuiltwhen peoplecanutilizeaROWElifestyletogetthejobdone!

1.2ResultsOnlyWorkEnvironment
ROWEisabold,culturaltransformationthatpermeatestheattitudesandoperatingstyleofan entireworkplace,levelingtheplayingfieldandgivingpeoplecompleteautonomy. Managementcanstopmonitoringthehallways,andfocustheirenergyonthebusiness. WithROWE: Thereisnoneedforschedules Nobodyfocusesonhowmanyhoursdidyouwork? Nobodyfeelsoverworked,stressedoutorguilty Peopleatalllevelsstopwastingthecompanystimeandmoney Teamwork,morale,andengagementsoar Theresnojudgmentonhowpeoplespendtheirtime ROWEisallaboutresults.Noresults,nojob.Itsthatsimple. ROWEcreatesanenvironmentthatwillbestservetheneedsofyourcustomers,bothinternal andexternal,byallowingteamstomeetthecustomerinaseamlessandubiquitousfashion. Page3

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1.3ROWEvs.FlexibleWorkArrangements

ROWErecognizesthatlifeisanindividualexperienceandthatnotwolivesareidenticalandleveragesthis toachievebetterperformancefromeachindividual.

ROWEisnotFlextime.ROWEisnotTelecommuting.ROWEisnotJobSharing.

ResultsOnlyWorkEnvironment
Nopermissionneeded Unlimitedoptionsfluid Employeemanaged Basedonthework Requiresaccountability/cleargoals Focusedonthework Adaptivesolutiontooverworkchallenge

FlexibleWorkArrangements
Permissionrequired Limitedoptionsinflexible Managementcontrolled Basedonhours Requirespolicies/guidelines Focusedontimeoff Technicalsolutiontooverworkchallenge

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1.4ROWECharacteristics

AResultsOnlyWorkEnvironmentculturehasthefollowingcharacteristics: Trustandmutualrespectbetweenmanagersandbothhourlyandsalariedemployees Flexiblerolesandresponsibilities Constantfocusonthecustomersneeds ResultsOnlyedge SenseofcommitmenttotheteamandtotheCompany Freedomtoactandtobeheldaccountable Personalingenuityandrisktaking Dynamicandfrequentchange

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 Section2. TheCaseforChange 2.1TheChallenge

Companiestodayarefacingmanychallengesinthequesttooptimizework.Isyourcompanyattemptingto solveforthefollowingchallenges? Maximizeworkforcecapacitytodriveproductivitythatsupportsgrowthstrategy Attractandretainthebesttalent Increaseemployeesatisfaction Eliminatewaste&inefficiencies Creatework/lifebalance Harnessthetalentofthemultiplegenerationsintodaysworkforce Theworkforceisevolvingdemographically,requiringcompaniestobeginrethinkingthework,andhow, whenandwhereitwillgetdone.Acompanysabilitytoattractandretaintoptalent,aswellasmotivate existingemployees,willbecriticaltofuturegrowth&success.ThefollowingstatisticsfromThePerfect LaborStorm(www.perfectlaborstorm.com)actasawakeupcall,requiringcompaniestoactnow adoptingstrategiesthatwillpreparethemtomovebusinessintothefuture: Onefifthofthiscountryslarge,establishedcompanieswillbelosing40percentormoreoftheir topleveltalentinthenextfiveyears. Thereplacementpoolof35to44yearoldswilldeclineby15percentinthenextfiveyears. The50andolderpopulationfrom20002050willgrowatarate68timesfasterthantherateof growthforthetotalpopulation ROWEaddressescurrentandfutureworkforcechallenges.SuccessfullyadoptingaResultsOnlyWork Environment(ROWE)willpositionyourcompanytoattractandretainapooloftalentthatwillshowup energized,disciplined,fluid,flexibleandfocusedreadytodeliverallresultsnecessarytodrivethe business.Theresultingworkforceismoreefficient,productiveandloyaltotheorganizationwhilefeeling satisfied,fulfilled,andincontrol. AResultsOnlyWorkEnvironmentisaprovenTotalRewardsdifferentiator.Yourcompanycangaina competitiveadvantagebyadoptingaROWEmindset.
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Section3. BestBuyCo.,Inc.CaseStudyResults 3.1TalentRetentionProductiveTurnover

ROWEteamsatBestBuyCo.,Inc.areexperiencingaDECREASEinvoluntaryturnoverratesthe companyisretainingtherighttalent.ROWEteamsalsoexperienceanINCREASEininvoluntaryturnover ratesunsatisfactoryperformanceisexposed.

VoluntaryTurnoverRates 30 25 -75% 20 -90% -52% 15 10 5 0 TeamA Team B Team C FY 05 FY07 InROWEteams,VoluntaryTurnover Ratesaretrendingdown. ThecompanyisRETAININGTalent.

InvoluntaryTurnoverRates
12 10 8 6 4 2 0 TeamA Team B
FY 05 FY07

77.6% 100%

55.7%
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TeamC

InROWEteams,InvoluntaryTurnoverRates aretrendingup. ManagersarefocusedonPERFORMANCE.

ROWE Team

CostSavingsAssociatedwithReductioninVoluntaryTurnover

Numberof Employees

Voluntary Turnover FY05 15.51% 18.50% 31.46%

Voluntary Turnover FY07 0.00% 2.31% 4.49%

Voluntary Turnover Improvement (%pointsof change) 15.51% 16.19% 26.97%

Average Turnover Costper Employee $102,000.00 $102,000.00 $102,000.00

Voluntary Turnover Savings $2,214,828.00 $3,088,080.60 $1,375,470.00

TeamA TeamB TeamC

~140 ~187 ~50

3.2Productivity

KnowledgeWork InaResultsOnlyWorkEnvironment,productivityforknowledgeworkersismeasuredbasedonperceived gain.TheCultureRxPostMigrationCultureAuditusesaslidingscaleof1100%.Managersandemployees reportindividualperceptionsoftheirproductivitygainsbychoosingapointontheslidingscale.Ifan employeereportsaperceivedproductivitygainof40%,andthemanager(whoismeasuringbusiness outcomes)reportsagainintheoutcomeofprojectedbusinesstargets,thentheperceivedproductivity gainisdrivingrealresults. PERCEPTION:TheCultureRxPostMigrationCultureAuditreportedanaverage44.59%PERCEIVEDgainin productivityforTeamC. REALITY:DuringthetimethatthePERCEIVEDgainwasmeasured(CY20042006),TeamCrealizeda morethan50%INCREASEINBUSINESSRESULTS(costreductions)yearoveryearwithoutaddingadditional headcount. ProductionWork Productionworkismeasuredbymanagersintermsofoutcomeperhourwithprocessremaining unchanged. InadepartmentofTeamA,managementisreportinga1020%increaseinproductivityper employeewhichhasresultedinanapproximate$10MMannualbenefitforthecompany.

3.3EmployeeExperience

ThefollowingarecommentsfromemployeesworkinginaROWEabouttheirexperienceatBestBuys CorporateHeadquarters: Inmy10+yearsasamanager,Ihaveneverseenaconceptthatcouldmorequicklyorcompletely unleashthepowerofemployeestofocusoncustomersneeds,eliminatewaste,motivateteams, orattractandretaintalentbetterthanROWE.Itisanessentialtoolformanagerstobesuccessful andforcompaniestoremaincompetitiveintodaysbusinessenvironmentanditistheonetoolI neverwanttobewithout. IlovetheROWEenvironment.Itgivesmebalanceandlessstress!Italsoforcescleargoalsand expectations.ItmakesmefeellikeImincontrolofmydestiny. ROWEisthebestthingthathashappenedtomeinmyworkenvironment.Ifeellessstressed, moreengagedandresponsiblefortheworkIputout,andIfeelmoretrustedandempoweredby mymanagerandothersonmyteam.Mywholeviewofmyjobandworkhaschangedsignificantly forthebetter.ItrulybelievemyteamhasembracedtheessenceofROWE,andsinceitsrolloutI feelevenmoreconfidentinmycoworkersintegrityandworkethics.

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SinceROWEbeganmyoutlookonmyjobandteamhasimprovedtremendously.Iamsomuch moreproductiveandpositive.Myteamismuchmoregoalorientedandpositionedtoaccomplish thosegoals.Thestress/tensionlevelhasdroppeddramatically.Imveryimpressedthat[The Company]tookthisriskanddemonstratedsopubliclythattheytrusttheiremployeesandvaluethe talentwithinthiscompany. TheROWEenvironmenthasreenergizedme.Thisisagreatprogramandhasincreasedmy productiontremendously.ROWEisawesomemyloyaltytothecompanyis100%asaresult. [TheCompany]asawholedefinitelycaresaboutourwork/personalhappiness. Ilikeworkingforacompanythatunderstandslifeoutsideofwork.ROWEhasenabledmeto probablyworkmorehours,howeverfeelthatIhavetimeforeverythinginmylife.Iamtherefore lessstressedandcanworkmoreandmoreefficiently.IfeelmoreincontrolofmyworkandthatI havemoretooffer,whichmakesmefeelgoodasaperson. ROWE!Itsthegreatestconceptever.Thankyouforgivingmetheflexibilitytochoosewhenand whereIworksolongasIdeliverresults.IfinallyfeellikeIambeingtreatedlikeanadult!Please helpthosethatstillthinktheyneedtositintheircubeandsurftheinternetorwalkaroundandtalk topeopleuntiltheirbossleavesfortheday.

Section4.

Summary

4.1Summary

ROWEisabold,culturaltransformationthatpermeatestheattitudesandoperatingstyleofan entireworkplace,levelingtheplayingfieldandgivingpeoplecompleteautonomyaslongasthe workgetsdone. ROWEisnotFlextime.ROWEisnotTelecommuting.ROWEisnotJobSharing. ROWEisdifferentfromotherwork/lifeprogramsbecauseitisabusinessstrategythatpositively impactsthebottomlinewhilesimultaneouslyimprovingtheemployeeexperience. ROWErecognizesthatlifeisanindividualexperienceandthatnotwolivesareidenticaland leveragesthistoachievebetterperformancefromeachindividual.ROWEimprovesemployee engagement,moraleandcommitmenttotheorganization. AResultsOnlyWorkEnvironmentisaprovenTotalRewardsdifferentiator.Yourcompanycangain competitiveadvantagebyadoptingaROWEmindset. ROWEaffectsthebottomlineROWEisaprovenbusinessstrategythateliminateswastefrom thesystemresultinginincreasedemployeecapacityandproductivity.ROWEteamsreportan averageincreaseof35%inproductivity! ROWEaffectsthecostofturnoverROWEteamsareexperiencinguptoa90%decreasein voluntaryturnoverrates.Todayslabormarketshortageisnolaughingmatter.Considerthe followingcostsofturnover: o HardCosts:Administrativetime,vacancycost,coworkeroverburden,recruitingand advertising,selectionandinterviewing,trainingandonboarding

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SoftCosts:Waningproductivityofexitingemployees,lostproductivityofcoworkerswho focusonthestatusoftheworkplaceandtheeverincreasingworkload

Section5. Appendices 5.1ROWEandCommunicationAStudy

AstudyconductedforTheUniversityofSt.ThomasfeaturedROWE&internalcommunicationsatBestBuy, Co.,Inc.Basedontheresearch,whichincludedasurveyofthecorporateemployeepopulation,itwas concludedthataResultsOnlyWorkEnvironmentdoesNOTnegativelyimpactinternalcommunications.In fact,inmanycases,animprovementisnotedafterateammigratestoaROWE. 65%ofsurveyrespondentsindicatedthatsincemigratingtoaResultsOnlyWorkEnvironment,the qualityofinteractionswiththeirmanagerhadstayedthesame.However,over30%indicatedthat thequalityoftheirinteractionshadactuallyimprovedorsignificantlyimproved. Migratedemployeesalsofeltthat,forthemostpart,theirworkingrelationshipwiththeirteam membershadstayedthesame,and33%feltthoseworkingrelationshipshadsomewhator significantlyimproved. 72%ofthoseemployeeswhohadmigratedtoaROWEfeltthattheirworkingrelationshipwith theirclients/partnershadstayedthesame.Approximately24%ofemployeeswhohadmigratedto ROWEindicatedthattheirworkingrelationshipwithclients/partnershadactuallyimprovedor significantlyimproved. 77%ofsurveyrespondentswhohadmigratedtoROWE,orareintheprocessofmigrating, indicatedthattheyfelttheirconnectiontotheorganizationwasstrongorverystrong.Employees whohadmigratedmorethantwelvemonthsagomoreoftenrespondedthattheirconnectionwas verystrong.Employeesalsofelttheirconnectiontotheorganizationwasstrongorverystrong, regardlessoftheirageorgender.

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5.2TheUniversityofMinnesotaStudy

TheUniversityofMinnesota,sponsoredbytheNationalInstituteofHealth,partneredwith CultureRxandBestBuyCo.,Inc.toinvestigatetheeffectofROWEonemployeehealth&wellbeing. Fullresearchreportcanbefoundat:www.flexiblework.umn.edu. Findings MoreROWEemployeesthancomparisonemployees Havegreaterorganizationalcommitment Reporthigherjobsatisfaction Viewthecultureasfamilyfriendly Reportincreasedjobsecurity

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Reportlessworkfamilyconflict Reportadecreaseinnegativespilloverfromworktofamily Begintosleepmorethansevenhoursanight Improvethequalityoftheirsleep Nowgotothedoctorwhensick Begintoexercisemorefrequently Reportgainsinenergy

FewerROWEemployeesthancomparisonemployees: Dolowvaluework Havehighturnoverintentions Experienceinterruptionsatwork Feelpressuretoworkovertime Cometotheworkplacewhensick WhyROWEisapromisingapproach ROWEexplicitlyaimstoincreaseschedulecontrol.Manyflexibleworkprogramsrequirea managersapprovalforeverychange,soemployeesarelesslikelytobenefitbecausetheirschedule controldoesnotincrease ROWEinvolvesthewholeteam,makingitnormalandacceptabletochangethewayworkisdone. Thisreducesemployeeslegitimatefearsthattheywillbepenalizedforworkingdifferently ROWEhelpstheteamconsideritseverydayworkpracticesandfindwaystobemoreefficient TheROWEmigrationisaparticipativeprocesswhichmodelskeystrategiesforlearning organizationsincludingdiagnosing,experimenting,andcontinualadjustmenttoachievetheteams goals. Increasedschedulecontrolhasthepotentialtosubstantiallyreduceworklifeconflictsandthereby benefitemployees,theirfamilies,theirworkorganizations,andsocietyasawhole.

5.3JACounter&AssociatesCaseStudyResults
FinancialServicesFirm NewRichmond,WI June2008 PilotResults: Measurestaken3monthspostmigration: Revenueperfulltimeemployeeimproved18% Profitperfulltimeemployeeimprovedby250% AccuracyratesinthePersonalMarketsDepartmentimprovedby14.45%effectivelyeliminating reprocessingatrep/adminandcompliance/supervisorylevels

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5.4Gap,Inc
SanFrancisco,CA February2009 PilotResults: Acrossallvariables(EmployeeEngagement/Satisfaction,Productivity,BusinessPerformance), performanceofthepilotgroupimprovedoverthecourseoftheROWEpilot.Belowisasummaryof quantitativeresultsfromthepilotsurvey: QuantitativeResults Inadditiontothepilotsurveyresultsbelow,PilotDivisionalsoobservedthefollowingquantitative outcomesoftheROWEPilot: Division2StakeholderSurveyResults AskedtoevaluateProductionteamperformanceaftertheimplementationofFWAand ROWE,GapInc.Sourcing(GIS)reportedthefollowing: o 72%reportedthatefficiencybetweenPilotDivisionandDivision2hasincreased o 45%reportedthatresponsivenesshasincreased o 85%reportedthatPilotDivisionhasahighdegreeofaccountability o 82%reportedthatPilotDivisionbusinesspartnersarehighlyaccessible 2008EOSBalanceScore:PilotDivisionsEOSBalancescoreimprovedby10pptsbetween 2007and2008to82%,thehighestscoreinPilotDivisionshistory. ROWEParticipant&ManagerPilotSurveyResults Category Productivity Employee Engagement/ Satisfaction Performance Item Productivity Engagement Communication/ Balance Quality ServiceLevels Managers TotalScore PrePilot PilotDivision TotalScore 3.52 4.33 4.03 4.11 4.13 4.26 4.07 PostPilot PilotDivision TotalScore 4.25 4.64 4.47 4.71 4.62 4.76 4.57 Change 0.73 0.31 0.44 0.60 0.49 0.50 0.50 %Change 21% 7% 11% 15% 12% 12% 12%

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5.5GirlScoutsofSanGorgonioCouncilCaseStudyResults
NonProfitOrganization Redlands,California ExecutiveSummary InJuly2008,TheGirlScoutsofSanGorgonioCouncilbecamethefirstnonprofitorganizationinthe countrytomigratetoaResultsOnlyWorkEnvironment(ROWE).Theaimofthisanalysisistoreview theimpactthatmigrationtoROWEhashadonthecompanysemployeesandthecompanyitselfafter sixmonthsofworkinginaResultsOnlyWorkEnvironment. AnonlineSurveyMonkeysurveywassenttoallfulltimecouncilstaff.Outof58fulltimeemployees, 44employeesresponded.Parttimeemployeeswerenotsentthesurveybecausetheirpositions alreadyallowedthemtocontroltheirtimeevenbeforemigratingtoROWE(e.g.theywereableto determinewhichdaysandhourstheywereavailableandwantedtowork). Employeeswereaskedtorespondtomultiplechoiceandnarrativequestionsregardingindicatorssuch aswork/lifebalance,workperformance,healthandwellness,andeconomicimpact,bothpreROWE andpostmigrationtoROWE.DataanalysisfocusedondifferencesinresponsespreandpostROWE. OuranalysisfoundthatROWEhashadaremarkablepositiveimpactonemployeesattitudesand behaviors.

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QualitativeOutcomes Inadditiontoquantitativeresults,theROWEpilotsurveyproducedover150employee,manager,and stakeholdercommentsattestingtothebusinessbenefitsoftheprogram.Belowisasampleofthose comments: Iwasrecruitedverystronglyforanotherpositionoutsidethecompanywithslightlybetterpay butmuchclosertomyhome.Icanhonestlysaythatifitwasntfor[ROWE]Iwouldhavetaken thatjob. [ROWE]isthebestraiseIveeverbeengiven. Personally,Iam30timesmoreproductiveintheearlymorning.ROWEhasallowedmeto comeinandcompleteworkmoreefficientlyandwithbetterresultswhenIamatmybest. IloveROWEandIhaveneverseenmyemployeeshappier,whileatthesametimehavinga riseinproductivity. IfeelROWEsupportstrustingandempoweringouremployeestomaketherightdecisions.As aleaderofalargeteam,Ihavealsonotseenanynegativeimpactinperformance,abilityto reachteammembers,andinouroverallabilitytodriveresults.

KeyFindings Summarizedbelowisthedataofthekeyfindings.Changesthatare60%orgreaterarehighlightedin green.Changesthatare80%orgreaterarehighlightedinorange. KeyWorkPerformanceIndicators 6MonthsPostROWE KeyWorkPerformance PreROWE%Good Percent %GoodorGreat Indicators orGreatRating Change Rating Focuswhenworking 54% 95% +76% Productivitywhenworking 58% 98% +69% Efficiencywhenworking 54% 98% +81% KeyWork/LifeBalanceIndicators 6MonthsPostROWE Percent KeyWork/LifeBalance PreROWE%Good %GoodorGreat Change Indicators orGreatRating Rating Controloftime 29% 100% +245% Worklifebalance 18% 93% +417% Adequacyoftimetogetthings 39% 93% +138% done KeyEmployeeHealthandWellnessIndicators KeyEmployeeHealthandWellness 6MonthsPostROWE Percent PreROWE% Indicators % Change Average7hoursormoreofsleepper 25% 53% +112% night Qualityofsleepratedatgood,very 27% 86% +219% goodorgreat 3ormorehoursofworklostper 39% 7% 82% monthduetoillness AftermigratingtoROWE,%who reportedbeinglesslikelytoreportto n/a 71% n/a worksick

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$155/month

n/a

KeyEmployeeSatisfactionIndicators Page14 KeyEmployeeSatisfactionIndicators Overalljobsatisfactionratingby employeeofsomewhatsatisfied, satisfied,orverysatisfied Percentwhoratedlikelihoodof searchingforanotherjoboverthe nextyearasnotlikely Voluntaryturnoverrate AdditionalKeyPostRoweIndicators AdditionalKeyPostRoweIndicators PreROWE 50% 6MonthsPostROWE 90% Percent Change +80%

43% 16.25%

95% 9.75%

+121% 40%

PercentofEmployeesWhoGavea RatingofEitherAgreeorStrongly Agree 74% 69% 49% 80% 88%

ROWEhasleadtobetterteamworkinourorganization. ROWEhasleadtobettercommunicationbetweenstaff. ROWEhasleadtobettercrosstrainingofstaff. ROWEmakesmefeelmoreengagedwithourorganization. ROWEmakesmefeelmorevaluedasanemployee.

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KeyEconomicandEnvironmentalIndicators KeyEconomicandEnvironmental PreROWE Indicators %ofpeoplewhocommutetowork lessthan4daysperweek(standard 2% workweek) Percentofemployeeswhohave alteredthetimetheycommutein n/a ordertoavoidtraffic Percentofemployeeswhoseoneway commutetimehasbeenshortenedby n/a 10minutesormore Averageemployeemonthlypersonal n/a costsavings

6MonthsPostROWE 53%

Percent Change +2,550% n/a

69%

40%

n/a

ROWEmakesmefeelequaltootheremployeesofalllevels. ROWEallowsmetospendmoretimewithmyfamily. ROWEhasmademefeelmoreincontrolofmylife. ROWEhashelpedmetounderstandmyjobdutiesbetter. ROWEhasincreasedmyproductivity. ROWEhashelpedmetobemorefocusedinmywork. ROWEhashelpedmetobemoreefficient. ROWEisgoodformeasanemployee. ROWEisgoodforourorganization. Page15

79% 88% 93% 62% 75% 69% 83% 93% 93%

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ROWEmakesmelesslikelytolookforanotherjob 100% elsewhere. Employeesalsorespondedwithsignificantnarrativefeedback,including: ROWEhasgivenmetrueworklifebalance.BeforeROWEIwasoverworked,alwaystiredand frustratedbecauseIdidn'thavethetimeIneededtotakecareofmyhouseandvisitwithfamily, nowIhavethattime.Ialsohavethetimenowtogotothegymorgoforlongruns.Iamfinallyable toputmyselfbackinshapewhichmakesmefeelgoodanditgivesmemoreenergywhichisgreat becauseIhavemoreenergytoputintoeverythingIdoandIthinkIdoabetterjobatworkasa result. IthasgivenmethecomforttoknowthatwhenI'mtiredandcan'tthinkanymore,Icangohome andnotgetintrouble.I'mnotforcedtobehereforthefull9.5hours.Ithasmademylifeless anxious.IthasalsogivenmethecomfortthatifsomethinghappensinmylifethatIhavetotake timeoffworktotakecareof,thatIcanwithoutjeopardizingmyjob. Familytime.Icanpickmychildrenupfromschool,gotoplays,dropthemoffinthemorningand whentheyaretuckedinforthenightdomoreworkandbeproductive.Thisisbrilliantforasingle mom!!! ItisawonderfulprogramandIlovethatIfeeltrusted&honoredtoworkforthisorganization.It letusworkwhenwearemostproductive.

OurROWEStory June2008markedthebeginningofourjourneywithROWE AsthenewCEOfortheGirlScoutsofSanGorgonioCouncil(whichserves15,000girlsand5,000 volunteersinRiversideandSanBernardinoCountiesinsouthernCalifornia),Ihadbeenstrugglingwith reconciling100yearsofNonProfitOrganizationtraditionsandwevealwaysdoneitthatway attitudeswithmymoremodernwayofdoingbusiness.WhenIstartedinmyposition,Itoldourstaff thatIdidntbelieveinbuttinseattime,whichwasmywayoftellingthemthatIknewthatsimply sittingintheirchairsdidntmeantheywerebeingasproductiveaspossibleandthatIwasopento themhavingmoreflexibleschedules. Wewereimmediatelyabletoshedsomeoftheoldwaysofdoingthings,butevenaftermaking significantchanges,Istillfelttherewassomethingmissingpeoplewerestilloverlystressed,and creativityandinnovationjustwerenthappeningthewayIexpected. Then,atthebeginningofJune,IspottedabookcalledWhyWorkSucksandHowtoFixItbyCali ResslerandJodyThompsoninanairportbookstoreandafterskimmingthebookquickly,IknewIhad myhandsonatoolthatwasgoingtochangeeverything.Ireaditcovertocoverontheplane,ande mailedmyHRDirectorsoonafter;tellinghimthatheneededtoreadthisamazingbook.Hereaditthat day,andwedecidedrightthenthatourorganizationhadtotransformintoaResultsOnlyWork Environment. Wemovedfast(sofastthattheROWELaunchKitthatCaliandJodydevelopedwasntevenreadyyet!) andDanielandImetwithourmanagementteam,gotourBoardPresidentbehindtheidea,andtalked throughallofthedetailsofwhatROWEwouldlooklikeatourorganization. OnJuly11,2008,werolledROWEouttoouremployeeswithapresentationwecalledHelloROWE! WehadcustomHelloROWEtshirtsmadeandcreatedaninteractivePowerPointthatwe interspersedwithSludgeskitsperformedbysomeofthebestactorsandactressesonstaff.Our employeeswereinastateofshockatfirstwhenwetoldthemthecoreconceptofROWE(work whereveryouwant,wheneveryouwantaslongastheworkgetsdone),therewascomplete silenceandtheneveryonewokeuptowhatwasreallyhappeningandtheroomexplodedwith excitement.Whenstaffaskedwhendoesthisstart?wesaid:rightnow! Yes,thatsrightwewentfrompurchasingthebooktoimplementationacrosstheentireorganization of80staffinONEmonth!AsofJuly11,2008wewereofficiallyNonProfitOrganizationGoneROWE! Sincewewerealreadythreequartersofthewaythroughourfiscalyear,wedecidedthatitwas importantforourstafftoexperiencetheROWEwayofworkbeforewetackledthelasttwobigpieces oftheROWEpuzzle:newresultsforeachemployeeandleavetimepolicies. WestartedtheprocessofwritingresultsinlateSeptember,andweredonebymidNovember.We askedeachemployeetowritetheirownresults,andthengettogetherwiththeirsupervisortoreview themandaddorsubtractitems.Sincethiswasthefirsttimeemployeeseverhadtobreaktheirjob dutiesdowninthatway,itoftentooksomepracticebeforetheywereabletowriteresultsfor

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themselvesthatwerebothspecificenoughandmeasurableenough.OurHRDirector,thenreviewedall oftheresultsforconsistency,andwewereoffandROWEing! Westartedtheprocessofthinkingaboutleavetimepoliciesbyaskingstaffwhattheywantedina surveythatgavethemthreeoptions:keepthingsbasicallyastheyare;keepsicktimebasicallyasitis (withalittlemoreofacap)andmakevacationandpersonaltimecompletelyopenended;ormakeall leavetimecompletelyopenended. Ouremployeesoverwhelminglyfavoredthefollowingleavepolicy: 1. Thereisnoaccruedtimeforvacationorpersonaltime.Employeestakethetimetheyneedwhen theyneeditaslongastheyareontracktomeettheirresults. 2. Eachemployeecanaccrueupto350hoursofsicktimethatwillonlybetappedintoafteran employeehasbeenoutsickfor3days(wecallitanextendedsickleavepolicy). OurBoardofDirectorssupportedtheswitchtothenewpolicy,andwemadethechangetoourleave systemofficialasofOctober1,2008. NarrativeSummaryoftheImpactofROWE BenefitstotheEmployee ThebenefitsofaResultsOnlyWorkEnvironmentareclearintheemployeeresponsestothesurvey questionsandinparticularintheirresponsestothenarrativequestionsinwhichtheyaskedtoprovide theirfeedbackaboutROWE.Ingeneral,themostsignificantwaysinwhichROWEbenefitsemployees centeraroundfourkeyareas: Work/LifeBalance CostSavings Health&Wellness JobSatisfaction Work/LifeBalance Therewasmorethana400%increaseinthenumberofemployeeswhoreportedfeelinggoodor greatabouttheirwork/lifebalancesixmonthspostROWE.Thisfindingisreflectedinotherpositive findingssuchastheincreaseinpercentofemployeeswhoreportgoodorgreatcontroloftheir time(+245%)andadequacyoftimetogetthingsdone(+138%).Thisisalsosupportedbythepercentof employeeswhoreportthatROWEallowsmetospendmoretimewithmyfamily(88%)andthat ROWEhasmademefeelmoreincontrolofmylife(93%). CostSavings Onaverage,employeesreportsaving$155permonthwhileworkinginaROWE.Thissavingsranges from$0toover$1,000peremployeepermonth.Oneofthelargestsavingsareasisinchildcare,as employeeshavebeenabletoreworktheirschedulestomanagetheirjobsandcaringfortheirchildren, andcanthereforereducetheirrelianceonoutsidechildcare.Inaddition,employeesaresavingmoney ongas,tollsandothercommutingcostssuchascarmaintenancebycommutingtoworkfewerdaysper weekandbychangingtheircommutetimessothattheydontwastetimeandgassittingintraffic. Employeesarealsosavingmoneybecausetheyhaveenoughtimetoeatbreakfastathomeand preparealunchfromhometobringtowork.

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Health&Wellness Changesinemployeebehaviorsthatimpacttheirhealthandwellnessweresomeofthemost unexpectedpositiveoutcomesofROWE.Notonlydidemployeesreportanincreaseinthenumberof hoursofsleeptheyaverageeachnight(112%increaseinthosereporting7hoursormore),butthere wasalsoa219%increaseinthenumberofpeoplewhoratedtheirsleepqualityasgoodorgreat. Inaddition,thenumberofemployeeswholostthreeormorehoursofworktimepermonthdueto illnessdecreasedby82%.Thenumberofemployeeswhosaidtheywerenowlesslikelytoreportto worksickwas71%. Employeesalsoreportedbeingabletoengageinmorephysicalactivity(suchasrunningorswimming) andmaintainbettereatinghabits(likeeatingbreakfastathome). JobSatisfaction Employeesreportedsignificantincreasesintheirjobsatisfaction,withthenumberofemployeeswho aresomewhatsatisfied,satisfiedorverysatisfiedwiththeirjobsincreasingfrom50%of employeestoalmost90%ofemployees.Inaddition,thenumberofemployeeswhoexpressedthat theywerenotlikelytolookforanotherjoboverthenextyearincreasedfrom43%to95%. Furthermore,100%ofemployeesagreedwiththestatementthatROWEmakesmelesslikelytolook foranotherjobelsewhere. Asfurtherevidenceofjobsatisfaction,ourvoluntaryturnoverdecreasedfrom16.25%to9.75%during thesixmonthperiodimmediatelyfollowingthetransitiontoROWE. BenefitstotheCompany Ingeneral,thespecificcostssavingstoourcompanysofararesomewhatdifficulttoquantify,with someexceptions.Weknow,forinstance,thatweveseenadecreaseinvoluntaryturnover,which correlatestoasignificantcostsavings.Inastudydonelastyearatourorganization,itwasdetermined that,onaverage,itcoststheCouncil$5,055torecruit,interview,hire,train,etc.eachnewemployee. ThereductioninturnoversincemigratingtoROWEreflectsapproximatelyfivelessvoluntarily separatedemployees,or$25,000+lessdollarslosttofillingvacantpositions. Whatismostdifficulttodetermineisthebenefittotheorganizationinrelationtohowemployee satisfactioncorrelateswithcustomersatisfactionandlongtermfinancialoutcomes.Anecdotally,our switchtoaResultsOnlyWorkEnvironmenthascorrelatedwithvolunteers(oneofourkeycustomers) reportingthattheyfeelmoresupportedandarehappierwiththeservicetheyreceivefromour employees. Inaddition,thepercentofemployeeswhoratedtheirproductivityaseithergoodorgreat increasedfrom58%preROWEto98%postROWE.Employeeefficiencyandfocusincreasedinasimilar mannerfrom54%preROWEto98%postROWE,andfrom54%preROWEto95%postROWE, respectively. Studiesontheconnectionbetweencustomerservicevariables(suchassatisfactionandloyalty), employeevariables(suchassatisfaction,enthusiasm,loyalty,commitment,capability,andinternal servicequality),andfinancialresultsindicatethatcompanieshavefoundthat3:

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Multipleothercompanies,fromCVStoSunMicrosystems,reportsimilarcorrelationsbetween employeesatisfaction,customersatisfaction,andfinancialresults.3 BenefitstotheCommunity&Environment Themostsignificantareainwhichweseeimmediatecommunityimpactisinthereductionof employeecommutingtime.BeforeROWE,only2%ofemployeescommutedtoworklessthan4daysa week(ourstandardworkweek).Now,53%ofemployeescommutetoworklessthan4daysperweek onaverage.Inaddition,69%ofemployeeshavealteredtheircommutingtimestoavoidtraffic.With theaveragelengthofanemployeescommutebeing29milesroundtrip,thereductionintripstothe officeandtheeffortstoavoidhightrafficperiodsstarttoaddupandresultinfewercarsontheroad forashorteramountoftime. ChallengesofROWE ThemigrationtoaResultsOnlyWorkEnvironmenthasnotbeenwithoutchallenges.Ittooksignificant thoughtandefforttomakechangestopersonnelpolicies,toensurethatalllaborlawswerebeing followedinthecontextofROWE,andtowriteresultsforeveryemployee. Therehavebeenchallengesalongthewayasemployeeshavelearnedtocommunicatedifferentlywith eachother.Theynowconsistentlyleteachotherknowwhentheywillbeintheofficeandhowtheycan bereachedwhentheyareworkingawayfromtheoffice.Theyarealsotakingadvantageofthemultiple waysofcommunicatingthatareavailabletothemincludingcellphones,textmessagingandinstant messaging. Inaddition,managershavehadtosignificantlychangetheirmanagementstylesinsomecases.Sincean employeecannolongeringeneralbereprimandedforbeinglateorleavingearlyorabsenteeism, supervisorsmusthaveaclearlydefinedideaofwhattheirexpectationsarefortheiremployeesand effectivelycommunicatethoseexpectationsonanongoingbasis. WehavehadnosignificantabusesoftheROWEwayofworking.Wehavenothadsignificant unexplainedabsencesoremployeeswhohavespentextendedtimeawayfromtheofficewhileignoring theresultstheyneedtoachieve. Conclusion ROWEhasbeenoneofthebestoperationalchangesthatourorganizationhasevermade.Especiallyfor anonprofitthathasfewfundstospare,wecanbuildadeeplevelofemployeesatisfactionand commitmentbyensuringthatouremployeesarerespected,feeltrustedandinturn,areexpectedto contributetothecompanybyachievingsignificantresults.Ouremployeeshaverespondedwelltoa highlevelofaccountabilitybecauseitistieddirectlytogivingthemcompletecontroloftheirtime. ROWEisnotanemployeeperkitisawayofaligningthecompanysculturearoundkeyvaluesthat haveapositiveimpactonboththeemployeesandthecompany.
2010CultureRx,LLC.Allrightsreserved.

Unhappyemployeesarelessproductiveandmorelikelytohavehigherabsencerates Satisfiedemployeesaremoreproductive,innovative,andloyal Increasesinjobsatisfactionleadtoincreasesinemployeemorale,whichleadtoincreased employeeproductivity Employeesatisfactionleadstocustomerretention

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References 1. Ressler,Cali,andJodyThompson.WhyWorkSucksandHowtoFixIt.NewYork:Portfolio Hardcover,2008. 2. www.culturerx.com 3. AuthorUnknown,LinkingEmployeeSatisfactionwithProductivityPerformance,andCustomer Satisfaction,CorporateExecutiveBoardJuly2003.

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