Monthly Archives: June 2011

Five Strategies to Creating Loyalty

In my last Blog, I listed five essential strategies that reflect a structured approach for developing commitment to the organization’s vision and strategy.  Now I would like to discuss each of these at length.

Strategy 1: Engage employees in discussion  

With anxiety and fear being high in the employee ranks, it is ever more important for management to create and sustain a meaningful open conversation with all employees.   

Managers at every level, starting from the top, should actively challenge and encourage staff to contribute thoughts, ideas and creative solutions to improve their jobs, their departments and the overall operation of the organization.

Strategy 2: Create focus and shared vision

This is even more important during times of great change.  Strategies must be continually reviewed and shared with all employees to ensure every person in the organization is aligned with the strategies. 

Strategy 3: Communicate, communicate, communicate

I can’t emphasize enough how important communication is. Managers must share the vision, values, and positioning of the organization on regular basis.

This is most critical if the workplace is volatile or unstable. Employees can bring the vision and strategies to life only if they have an in-depth understanding of company goals and standards so they can elevate them to reality.

Strategy 4: Empower individuals to solve business issues

Individual contributors know exactly what has to be done to improve efficiency or effectiveness.  As leaders and managers it’s up to you to empower them to formulate the solution and allow them to share it with management.

Strategy 5: Continuous evaluation and feedback

No matter what sector you are in, sustaining best position requires continuous improvement. Evaluate your strategies on regular basis. Create a competitive edge and help employees feel they are continually growing and improving.

Employees and customers together build a company’s brand. Employee loyalty builds customer loyalty, which builds brand loyalty. It’s as simple – and as difficult – as that.  

Dianne Durkin is president and founder of Loyalty Factor, a specialized consulting and training company that enhances employee, customer and brand loyalty for some of the nation’s most prominent corporations and many smaller businesses. Dianne’s proven expertise lies in helping companies quickly get to the core issues and outlining their impact on the organization’s profits, productivity and people.  www.loyaltyfactor.com

Info Exchange – Are You a Controlaholic?

Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics. 

 
Loyalty Factor has been instrumental in helping companies:

  • Increase Customer Satisfaction by 20 – 33%
  • Increase Revenues by 50% in 18 months
  • Increase Manufacturing Production by 200% in 18 months

Our information exchange this week highlights the Harvard Business Review Article, You’re driving us crazy. You’ve got to back off,” by Doug Rauch, Trader Joe’s.

Former Trader Joe’s President Doug Rauch

 Are You a Controlaholic?

In a recent article in the Harvard Business Review entitled, “You’re Driving Us Crazy. You’ve Got to Back Off,” Doug Rauch of Trader Joe’s describes how his controlling behavior nearly prevented Trader Joe’s from successful expanding.

Bringing Trader Joe’s from the west coast to the east coast meant having a new staff and training them on the buying philosophies, organizational culture and the operational details of success. Doug felt no one could do it better than him.  

In his words, “a year or so in, they’d gotten the message just fine, only I didn’t see it. I kept micromanaging. The effect was stifling, especially on the buyers, the heart of the organization. They started to be afraid to take chances. It was beginning to affect the business.”

One senior buyer came to the rescue by saying, “You’re driving us crazy. You’ve got to back off. We’ll make mistakes, but you’ve got to let us go.”

It was the turning point.

As Doug worked to let go, he saw micromanagement as a failure of letting others shine and grow. Instead of saying, “Try this,” his new words were “What do you think we should try?”

The result was the company flourished. He experienced the joy of watching others succeed.

How Do You Create Loyalty in Current Corporate Culture?

Let’s face it, the downturn economy has led many organizations and employees to question loyalty issues in the workplace.   “Should there be loyalty?”  

With change being necessary and inevitable in today’s fast moving global economy, successful leaders have to continually seek improvements in processes and procedures to maximize efficiency and effectiveness across their organization. 

True leaders and managers initiate and stimulate change.  Smart executives recognize that change in fact sustains an organization helping it grow.

This is true no matter what sector of the industry you are in, with the most drastic changes making loyalty more important than ever before. 

Employee Loyalty drives creativity, innovation, and productivity that result in improved performance, and profitability.  

There are five essential strategies organizations can implement to create and foster increased loyalty among employees, customers and other stakeholders — these five strategies are sure to fuel momentum by engaging and valuing every constituency in an organization at every level and within every department.

  1. Engage Employees in Discussions
  2. Create Focus and Shared Vision
  3. Communicate, Communicate, Communicate
  4. Empower Individuals to Solve Business Issues
  5. Continuous Evaluation and Feedback on Results

 

In my next Blog, I will discuss how organizations can use these five strategies to develop individuals’ commitment to the organization’s vision and strategy.

Dianne Durkin is president and founder of Loyalty Factor, a specialized consulting and training company that enhances employee, customer and brand loyalty for some of the nation’s most prominent corporations and many smaller businesses. Dianne’s proven expertise lies in helping companies quickly get to the core issues and outlining their impact on the organization’s profits, productivity and people.  www.loyaltyfactor.com

What is the Loyalty Factor?

 

In its second printing, it is one of my new books and the name of my company!

The Loyalty Factor, LLC has been in business for over 15 years. The premise on which I built this business is that loyalty is not dead – it’s just been hiding.

The Loyalty Factor is what happens when company leaders and managers create an environment in which loyalty can thrive.

 

 This is an environment where people:

  • Are energized to promote loyalty from within the organization
  • Stimulate creativity and innovation
  • Create a favorable brand perception among consumers and stakeholders
  • Feel appreciated and recognized for their efforts
  • Feel like they are in on things
  • Know how their contributions make a huge difference in people’s lives

 

When these factors exist, loyalty follows, and organizations will see:

  • Lower employee turnover
  • Increased productivity
  • Higher profitability

 

Companies that have been on the list of Most Admired, Best to Work For, and Best Run, share the characteristics defined in The Loyalty Factor

Using the strategies in this book, we successfully resuscitated a corporation in this downturn economy. It increased its product shipments from $385K to $8.1 million in 18 months.  We did this by engaging, empowering and energizing the employees around a very clear, concise and meaningful purpose.

To Refuel, Recharge and Reenergize Your Organization, order my book today and start seeing your productivity and profitability increase.

Employee loyalty drives customer loyalty, which drives brand recognition.

 

 All you need to do is begin.

 

Dianne Durkin is president and founder of Loyalty Factor, a specialized consulting and training company that enhances employee, customer and brand loyalty for some of the nation’s most prominent corporations and many smaller businesses. Dianne’s proven expertise lies in helping companies quickly get to the core issues and outlining their impact on the organization’s profits, productivity and people. www.loyaltyfactor.com

Info Exchange – The Idea Hunter

 Welcome to the Loyalty Factor Information Exchange, a bi-weekly service providing summaries of major publications and books on various management and customer relationship topics. 

Loyalty Factor has been instrumental in helping companies:

  • Increase Customer Satisfaction by 20 – 33%
  • Increase Revenues by 50% in 18 months
  • Increase Manufacturing Production by 200% in 18 months

Our information exchange this week highlights a book entitled, “The Idea Hunter” by Andy Boynton and Bill Fischer with William Bole.

The Key Message: Know Your Circle of Competence and Stay within that Circle

 

The I-D-E-A Principles:

 

I – INTERESTED  – Be Interested, Not Just Interesting

Keep your brain open…..

Ideawork #1:  Carve out time everyday for your own learning.

 

D – DIVERSE – Ideas are everywhere

Bridging distant worlds….

Ideawork #2:  The I’s are narrowly focused, the T’s think expansion. All of us need to expand beyond our “small worlds.”

 

E – EXERCISED – Mastering the Habits of the Idea Hunt

Observe   

Ideawork #3:  Assemble a list of idea sources – blogs, people, magazines, papers, jouirnals, etc that support your goals as a professional.

 

A – AGILE – Idea Flow Is Critical

Let Ideas Percolate, and Recognize They Will Sell Themselves

Ideawork # 4:  Outline how to best implement them in the real world – and take action!