Many years ago I worked for a French technology company that took an approach a little like this. Their HQ in Bordeaux felt more like a high tech university campus than a global corporate HQ and people could come and go at will and they had 24
hr on-site catering. They had some people who only every worked during the night!
They produced some great technology but unfortunately their product direction wasn't great - they invented some products for which there was insufficient demand, which got them into financial trouble. When I joined them they had offices in 25 countries, including 4 or 5 offices in Japan and the average age of the company's staff was 27!
An outcome focused approach can also inspire innovation - it gives people the opportunity to work out better ways of achieving the goals. There are probably lots of people out there who are frustrated by being forced to do things in a way they feel is inefficient and there are other people who appreciate flexibility. However, I think management still need know how the results are being achieved in case corners are being cut which will have repercussions later on.
I think in an R&D environment the approach can work and is possibly a bit more common than we realise. However, in a service delivery environment you are really constrained around the hours that your customers work.