wisdom to win

 Wisdom to Win
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Frederick Reichheld (1952- )Frederick Reichheld


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:

  • service.
  • quality (of work and products).
  • productivity.


Loyal customers:

  • motivate employees.
  • 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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