Abraham Lincoln knew there would be a war and wanted America’s best officer to lead his army. He wanted Robert E. Lee. Lee was offered the post but demurred. He packed up his family, left his beloved Arlington, on a Virginia hillside overlooking Washington D.C., and rode south to offer himself to the newly formed Confederate States of America. He had decided that although he despised slavery, the issue that spurred the founding of the Confederacy in the first place, and that he had sworn an oath to the United States, his loyalty lay more with his state than his country. Lee’s decision should give us pause.
Loyalty is perhaps an old fashioned and certainly a tarnished concept. Consider that Liverpool soccer player Mario Balotelli was just awarded a six-figure Loyalty Bonus to remain with his team for the rest of the season. It is interesting because he is being paid £80,000 a week and is in the middle of his contract. Loyalty Bonuses are becoming increasingly common in professional sport.
Customer loyalty is big business. Ten years ago, a ground-breaking study done by Earl Sasser, of the Harvard Business School, determined that acquiring new customers cost a great deal but is worth the effort and expense if followed by strategies to keep them. Sasser concluded that if only 5% of new customers stay customers – remain loyal – then net profits can increase from 25% to an astounding 95%. His conclusions led to waves of ploys to win customer loyalty. They became more intense with the growth of e-commerce. His conclusions were proven valid when company after company reported the value of swallowing early losses for the long-term profits of loyal online customers.
Schools know Sasser. I graduated from McMaster University a long time ago and they have been sending me magazines, letters, push-page newsletters, and emails ever since. In a moment of generosity, or soft surrender, I once sent them a $100 cheque to help with a library renovation project – a piddling amount, but no matter. They upped their game and sent me mountains of appeals and even phone calls from earnest young folks who always start by encouraging me to reminisce and end with a request for money. They’ve spent way more than I gave them!
All colleges, universities, and private schools are part of the Sasser game. They all have Sasser loyalty departments flimsily disguised as alumni affairs, constituent relations, parent councils, trustee boards, or whatever other euphemisms they contrive. Good on them.
My grandfather was loyal to the steel plant in which he worked for 42 years and it was loyal to him. Those days of reciprocal loyalty appear to be over. In just about any workplace, be it an office, factory, or school, Robert E. Lee’s conundrum of divided loyalty is played out every day. What happens when a decision tests a CEO’s loyalty to the Board to which she reports, those she employs, customers she serves, and shareholder’s dividends? Can she muster the ethical fortitude to take a stand on where her loyalty should rest? What happens to middle managers when a CEO’s decisions violate established policies or threaten an organization’s values, culture, and customer loyalty? Will their loyalty rest with the leader or company? Will they summon the courage to fight for right or demonstrate character and walk away?
According to the Journal of Psychology, loyalty among today’s workers no longer depends on the old motivators of money, office, or title. Workers will walk, wilt, or revolt if loyalty is not shown through the trust of genuine autonomy, professional development they design or find, and an environment in which their voices are actually heard and sincerely respected without fear of reprisal or pandering.
An organization that fails to understand and live loyalty will flounder. Loyalty dies because one-way loyalty cannot live. People will only be loyal to someone whose loyalty to them is always demonstrated and never questioned. If loyalty is sacrificed for a quick buck, quick fix, or even the best of intentions it becomes a burned bridge that is tough to rebuild, especially by those found holding the matches.
Perhaps loyalty is old fashioned. It is certainly tarnished and it is tested every day. Maybe things have become so bad that loyalty is now a commodity that can be bought, wheedled, or ignored. I hope not. Maybe we would be well served to pause and consider where our loyalties truly lay. The exercise might reveal that loyalty is not so hard or old fashioned after all.
My loyalty rests with leaders who earn it, ideas that stand scrutiny, friends who offer compassion, companies that provide value, and institutions that live their stated values. The loyalty I feel most deeply is to loved ones who gently but constantly remind me that, in the end, they are all that truly matters.
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This is a splendid piece, John Boyko.
Thanks Paul. From a man of words such as you that is high praise indeed.