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Developing Relationship LoyaltyBy Murray Parker Abstract: How well can you count on your vendors, distributors, customers, employees, partners or other stakeholders in your organization? Consultant and author Andrew Sobel outlines the secret to ensuring loyalty in these relationships. And we’ll give you a hint; the answer is not friendship. Article: If challenging economic conditions have you examining internal practices and exploring all possible avenues to enhance performance, have you considered the role of your organization’s relationships; the very connective tissue by which your business functions? Is relationship loyalty where you want it to be with…. employees, customers, suppliers, partners, directors, financial institutions or regulatory bodies? Consider how this story illustrates the principles discussed below.
Of course there are many such stories that illustrate the rewards of personal integrity, of doing something that counts and for reaching out to go the extra mile. Certainly you don’t have to rescue someone from a bog to earn loyalty from a relationship. Nor, as it turns out, is it best to pursue a popular adage that says the best way to loyalty is to become a friend. From years of practical consulting experience, author Andrew Sobel (ii) suggests that relationship loyalty is dependent upon three factors: 1) Value, 2) Trust and 3) The Extra Mile. Analysis of your critical business relationships relative to these factors may offer new insight and heretofore-untracked paths for business improvement. Value: Value added, rather than friendship, is the starting point for relationship loyalty. Does this individual consistently help me improve my business and achieve the objectives we’ve set out? Is each employee contributing as expected? Are we maximizing our value to customers, shareholders and our communities? Are we effectively monitoring the value we add to our organization’s relationships? Trust: Many professionals can add value, however, loyalty increases dramatically when there is both value and trust. Trust begins to elevate you from being a “mercenary” or “vendor” to someone who is part of the inner circle. Other’s trust in you extends beyond their belief that you will do good work—it is a deeper, broader trust based on both professional competence and personal integrity. The Extra Mile: Your willingness to go the “extra mile” is a final element of the loyalty equation. Do you come through when things are difficult? Do you demonstrate that you actually care, beyond the dollars that are exchanged, about the welfare of your customer, supplier or partner? As many have said before:
Since people are the single most important resource that brings your business plan to life then relationships are the means by which success happens; the grease that lubricates the wheel of progress. For an avenue to improve performance that is independent of economic factors and completely under your control, take a close look at your relationships and consider a plan to change your practices so that they will nurture loyalty. (i) The story is for illustration purposes only and may or may not be fictional. |