Frederick Reichheld (1952- )
American management consultant (pictured right) best known for highlighting the link between employee
loyalty and customer loyalty.
Key book
The Loyalty Effect
(1996)
A committed, competent and loyal workforce creates loyal customers (and so higher
profits) by improving:
- quality (of work and products).
Loyal customers:
- recommend the product to others.
- are often prepared to pay a higher price.
- reduce costs by making customers less reliant on employee advice.
So the best companies put employees and customers first, but this philosophy is often
preached but infrequently practised.
Employees must be treated with hard-headed humanity,
emphasizing:
1. Performance
(removing low performers).
2. Adaptability to
change
3. Learning
(from success and failure).
4. Moral
purpose
Employees believing in:
- customer loyalty through employee loyalty.
- the golden rule (treating others as you would like them to treat you).
Key quotes on human
resource management
Loyalty is indeed a two-way street.
You cannot control a human inventory, which, of course, has a mind of its own, so you must earn its
loyalty.
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