4. * Original Question “How do we build Loyalty?”
* The Correct Question - “Lets retrace the
concept of Loyalty from its root cause, and in
the process understand its optimality or the
lack thereof. Shall We?”
*
6. * Betrayal in Business & Society
1.
2.
3.
4.
5.
6.
I never said that
I didn’t say that did I give anything to you in
writing?
I said that but I didn’t mean that, you
misunderstood me
We can’t honor that
Our contract clause 17.1.3.8 says otherwise
That’s not covered/not applicable
* Betrayal – the reason why it all started…
*
7. * Trust is a leading indicator of
Business/Industry/Economy Growth
* Legal System is a just a post-event dispute
redressal system, but if it comes to that
everything is lost anyway
* Level of Trust is what determines Growth, and
the Rate of it, or decline or stagnation…
*
8. * Business Understanding
* Explicitly Stated/Written-Contract
* Standard/Industry/Regional Practice
* Implicit / Implied / Interpolated / Extrapolated
* Only Logical / Concluded / Extended
* Common Sense
* Previously/Historically Done
* Perception of Ethical & What’s Justified
* The counterparty expectation of Common Sense in
your Business is so high that contrarian practices lead
to an extremely heavy penalty in Business
Opportunities and Success
*
9. * The need for Trust and prevalence of Common Sense
and other non-formal Business Agreements and
Understandings lead to the need and creation of
(Business) Relationships
* Also unless a elaborately details and exhaustive
contract is created one has to rely on Relationships
and the associated complexities that go along with it
* When 20th Century Specialists take over as General
Managers or Top Management they use common sense
and other approaches and not a fact based first
principles approach.
* They also run their Business using Relationships
*
10. * Any business understanding that goes beyond
the explicit agreements
* Leads to relationships
* And adherence to relationships and
understandings without a legal obligation is
Loyalty e.g. Customer Loyalty, Employee
Loyalty, Vendor Loyalty, Spouse/Family Loyalty,
Peer Group Loyalty etc…s
*
11. * Emotions, Charm, Charisma, Personality, Communication
Skills, Appearance, Power Dressing … follow…
* And Leadership Qualities required for getting things done ….
come into play
* And then starts Favoritism, Bias…
* And Sub-Optimal decisions all the way in everything that’s
done!
* That’s why Strategy Consultants make a lot of money! –J
* If you eliminate the Distrust and Betrayals you eliminate the
need for Relationships and Loyalty, Charismatic Leaderhip
and all the Sub optimality's that come along with it…
* And you will get uninhibited Growth in the Economy and
Across Economies cetris paribus.
*