Customer loyalty driven by employee loyalty

27th Mar 2007

Building a culture of employee loyalty has a direct bearing on customer loyalty and business profitability. That was the message from Paul Spiegelman, founder and CEO of The Beryl Companies at the American College of Healthcare Executives 50th Annual Congress in New Orleans last week.

"Well-developed and carefully executed employee recruitment and retention initiatives have a direct impact on customer service and profitability," he said. "An organisation's 'brand promise' cannot be fully delivered absent a culture that focuses on the personal and professional development of its people."

The Circle of Growth philosophy practiced at Beryl preaches that employee loyalty drives customer loyalty, which results in business profitability. To complete the circle, businesses reinvest profits into the professional and personal development of the workforce and the circle begins again.

According to Spiegelman, the seven simple tactics to creating a winning corporate culture include:

1. Visionary leadership - Leaders who are available, approachable and open with minimal micro management.
2.Consistent and effective communication - Multi-way communication explains the 'whys' information is shared and requested without fear of retribution.
3. Select for fit and ongoing development of staff - Wait for the right person to fill a position and have the courage to let go of the wrong.
4. Agile and open culture - A sense of pride, collaboration, respect and quality in a 'blame-free' environment.
5. Put service first - Strong standards put consumers first. In healthcare that includes patients, families, physicians and colleagues.
6. Ongoing recognition and community outreach - Recognition and appreciation must occur formally and informally at all levels.
7. Solid relationships - Collaborative relationships are the key to success.

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