Loyalty Based Management = Peak Performance

Loyalty is more that a powerful emotion, it drives companies to peak performance.

In my book Humanity at Work:  Encouraging Spirit, Achievement and Truth to Flourish in the Workplace, I describe what Frederick Reichheld called “loyalty based management”. This business strategy is described as follows: 

  1. The best customers help a company’s revenues and market share grow as repeat sales and referrals build;
  2. Superior growth attracts the best employees and delivers superior value to customers; employee loyalty grows through pride and satisfaction in their work;
  3. Loyal employees stay with a company and over time learn to reduce costs and improve quality, further enriching customer value and generating increased productivity;
  4. Higher productivity coupled with the efficiency of serving loyal, stable customers generates cost advantages that competitors find hard to beat; and
  5. Loyal investors help stabilize the company’s financial position allowing the company to further grow its business, and this growth  creates greater value, which can be passed on to customer,

Pretty neat, isn’t it?  Loyalty is a virtue in individuals and a principle that companies should strive to attain-a core belief.  When this mutuality of intent exists, a cycle of virtue is created. Rewarding careers and extraordinarily successful organizations are spawned.


About Santo Costa

Sandy Costa is an internationally respected speaker and business leader. Check out Sandy’s website at www.SantoCosta.com
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