Loyalty Rules: How Today's Leaders Build Lasting Relationships - Softcover

Frederick F. Reichheld; Rob Markey

Softcover

ISBN 10: 1591393248 ISBN 13: 9781591393245

Publisher: Harvard Business Review Press, 2003

Synopsis

In this provocative yet practical book, Fred Reichheld argues that loyalty provides the acid test for leadership in today's volatile business environment, and that most leaders deserve failing grades. In fact, the author is quick to highlight that less than half of today's employees believe their company deserves their loyalty. Reichheld's 1996 international bestseller, The Loyalty Effect, set out his theory and convincingly established the link between loyalty and bottom-line profits. In Loyalty Rules!, he moves from theory to practice, using vivid stories from many of today's most successful companies to illustrate how superior leaders create networks of mutually beneficial, trust-inspiring partnerships between customers, employees, suppliers, and investors. Reichheld's research demonstrates that effective leaders build relationships upon six bedrock principles of loyalty: Play to win/win: profiting at the expense of partners is a short cut to a dead end; Be picky: membership is a privilege; Keep it simple: complexity is the enemy of speed and flexibility; Reward the right results: worthy partners deserve worthy goals; Listen hard and talk straight: long-term relationships require honest, two-way communication and learning; and Preach what you practice: actions often speak louder than words but together, they are unbeatable.

About this title

Review:

It's trendy these days to decry a lack of loyalty among employers, employees, customers, and even investors, and blame it for everything from drops in business profitability to the decline of civilized society. But Frederick F. Reichheld, a Bain & Company director emeritus, insists that loyalty lives--and, in fact, remains a major reason for the success enjoyed by some of the leading names in both the Old and New Economies. Loyalty Rules, his follow-up to 1996's The Loyalty Effect, shows how practices that built such relationships in organizations like Harley-Davidson, Enterprise Rent-a-Car, Cisco Systems, and the U.S. Marine Corps help improve the atmosphere for all concerned and aid in producing better bottom-line results. The bulk of the book focuses on specific, real-world applications of Reichheld's Six Principles of Loyalty: in "Preach What You Practice," for example, he outlines various ways that "loyalty leaders" can articulate relevant concepts while clarifying "how these same philosophical foundations are ... not just feel-good platitudes." Reichheld also includes sample questionnaires from his Acid Test Survey, a critical part of the prescribed diagnosis-and-remedy program that is freely available on the author's Web site. --Howard Rothman

From the Back Cover:

"Loyalty rules at every level. Loyal employees in any company create loyal customers, who in turn create happy shareholders. The task process sounds easy but it's not, and it has defeated some of the bigger organizations of the twentieth century. Fred Reichheld admirably-and correctly- argues that the art of loyalty and relationship building provides us with the keys to making a modern organization actually work."
-Sir Richard Branson, Chairman, Virgin Group

"Reichheld's previous work proved that people and profits needn't be at odds-they can, in fact, be mutually supportive. Now, Loyalty Rules! provides the tools for leaders to implement this simple yet revolutionary concept and help ensure long-term success. Through concrete actions and winning strategies, Reichheld shows how people at all levels of an organization can promote loyalty and, in turn, create greater outcomes for all stakeholders. A valuable message for both the public and the private sector."
-Richard A. Gephardt, House Democratic Leader

"Once again, Fred Reichheld clearly demonstrates the importance of building customer loyalty. He provides rigorous checklists and compelling real-life examples that prove loyalty building is not only good business, it's also good corporate citizenship. This is a philosophy we live by at L.L. Bean, and one with which I couldn't agree more."
-Leon A. Gorman, President, L.L.Bean

"In The Loyalty Effect, Fred Reichheld showed us that indeed, loyalty 'is the hidden force behind growth, profits, and lasting value'-the intangible that binds an organization together and manifests the strength and quality of its culture. In Loyalty Rules!, he identifies and illustrates the simple rules and timeless principles that cultivate this hidden force and bring lasting value to enterprises that can implement and master them."
-Robert T. Herres, General, U.S. Air Force (retired), and Chairman, USAA

About this edition

• Publisher: Harvard Business Review Press
• Publication date: 2003
• ISBN 10: 1591393248
• ISBN 13: 9781591393245
• Binding: Paperback
• Edition number: 1
• Number of pages: 240