In modern business, the question of remote work has taken centre stage. Companies offering remote work options have found themselves at a crossroads, grappling with the challenges posed by this newfound flexibility. A notable example is the transformation when Elon Must took the reins at Twitter. The company had long been renowned for its relaxed approach to remote work, but this leniency came at a staggering cost – Twitter was haemorrhaging $4 million daily. Musk, recognising the need for change, ushered in a new era by calling upon employees to return to the office.
Twitter has witnessed a remarkable surge in innovation over the past three months, eclipsing the progress of the preceding three years.
A Key Insight: The Vital Role of the Top 10%
Elon Musk’s approach to remote work is grounded by a principle known as Price’s Law which is named after Derek J. de Solla Price, a British sociologist and science historian who first introduced it in 1965. Price’s Law postulates that 50% of the work is carried out by the square root of the total workforce involved in the endeavour. In other words, if you have 100 individuals engaged in a task, a mere 10% of them will generate more than 50% of the outcomes. Therefore, for companies to thrive in the forthcoming years, they must exhibit flexibility and adaptability toward their top 10%, while adopting a more structured approach for the remaining 90%.
Intriguingly, the top 10% of the workforce, who shoulder 50% of the workload, tend to embrace the idea of returning to the office willingly. Their commitment to excellence is unwavering, and they recognise the value of personal interaction and accountability. In contrast, the other 90% of the workforce, who are less enthusiastic about being held accountable, have expressed their discontent with the discontinuation of remote work.
Musk’s Insightful Approach
Elon Musk astutely grasps this fundamental principle, which forms the bedrock of his strategy. He has directed his managers to exercise flexibility when it comes to accommodating the top performers, while adopting a more stringent stance with others. In his own words, “At the risk of stating the obvious, any manager who falsely claims that someone reporting to them is doing excellent work or that a given role is essential, whether remote or not, will be exited from the company.”
In essence, the key takeaway from Musk’s approach is the recognition that the top employees, who are the driving force behind a company’s success, deserve a tailored approach that allows them the freedom to thrive. This flexibility not only fosters innovation but also ensures the sustained growth and viability of a company. In a rapidly changing business landscape, adaptability and a nuanced approach to remote work are indispensable tools for success.
At Rapport Leadership we have assisted businesses and organisations of varying type and size to create innovation cultures and environments where employees can thrive. If you would like to arrange a confidential chat to learn more, please get in touch.