Principle 2: Give Honest and Sincere Appreciation

Matthew Gerrell

Fractional CMO

People crave appreciation more than instruction.

Recognition fuels loyalty. Loyalty fuels retention. Retention fuels revenue.

Carnegie emphasized sincere appreciation, not flattery. Flattery manipulates. Appreciation affirms. One builds trust. The other erodes it over time.

In business, this distinction carries real weight.

When teams feel valued, discretionary effort rises. When clients feel recognized, relationships deepen. When consumers feel seen, engagement increases. Appreciation strengthens emotional equity, and emotional equity compounds into long term influence.

Many organizations focus almost exclusively on performance metrics. Revenue. Margin. Conversion rate. Those matter. Yet people often disengage not because compensation is insufficient, but because contribution feels invisible.

Appreciation corrects this.

Consider how often feedback only arrives when something goes wrong. Silence during strong performance sends an unintended message. Over time, motivation declines.

Practical ways to implement now:

1. Begin weekly meetings by highlighting one meaningful contribution from a team member.

2. Send one personalized message each week thanking a client for trust or partnership.

3. Publicly recognize effort, not just outcomes.

4. Build appreciation into performance dashboards alongside financial metrics.

5. Find a way to recognize each employee. I sent birthday cards to every employee on their birthday where I personally signed and sent a message. And with over 600, I would randomly select a few each month and draw a picture just to help try and brighten their day. I cannot tell you how many employees sent me notes saying I was the only one to recognize them on their birthday.

Specific recognition is powerful. Instead of saying, “Great job,” say, “Your preparation for that client meeting created confidence in the room.” Precision signals attention.

Gratitude builds relational capital. Relational capital builds resilience during challenges.

When people feel appreciated, loyalty strengthens. When loyalty strengthens, influence expands.