Episode 34

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Published on:

12th Sep 2025

34. What to Do When Loyalty Becomes a Performance Issue

Episode 34: What to Do When Loyalty Becomes a Performance Issue

Episode 9 in the series, The Founder’s Blind Spot

Loyalty is valuable. Loyal employees bring stability, wisdom, and a steady presence that anchors your business. But here’s the blind spot: when loyalty is rewarded more than performance, growth begins to stall.

Founders often defend underperformers with phrases like, “He’s been with me since the beginning,” or “She’s part of the family.” And while loyalty matters, it cannot be a free pass. When new ideas are ignored in favor of “the way it’s always been,” innovation goes silent. And when innovation goes silent, your best people quietly leave.

In this episode, James breaks down the difference between good loyalty—the kind that strengthens culture and carries performance—and problematic loyalty, where tenure shields underperformance.

This episode is for founders who:

Are struggling with the tension between loyalty and performance and want to protect culture without stalling growth.

What you’ll take away:

  • Loyalty paired with performance is priceless.
  • Loyalty without performance erodes trust and sets a lower standard.
  • Tenure is not the same as loyalty: some prove loyalty daily, others coast on years of service.
  • Rewarding loyalty over results slowly drives out your top performers.

Reflection Questions:

  • Who in your company represents good loyalty — people who’ve been around and are still raising the bar?
  • Where might you be protecting someone under the banner of loyalty, even though performance is slipping?
  • What would change if loyalty was honored, but never separated from results?

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About the Podcast

Leadership in 5
Lead better in 5 minutes. Tactical insights for founders who want clarity, momentum, and a business that doesn’t break them.
Execution without excuses. Five minutes. One insight. No wasted words.

Leadership In 5 is the podcast for founders and executives who are done with vague advice and tired of hearing “just communicate better” like it’s a strategy.

I’m James Mayhew. I’ve served as Chief Culture Officer, coached hundreds of leaders, and made the thousand-plus execution mistakes so you don’t have to. I work with high-growth companies that are scaling fast — but who still want to lead with values, not ego.

Each episode delivers one sharp insight you can act on. You’ll hear practical guidance built on clarity, not charisma. No theory. No fluff. Just real leadership tools that work in real companies with real people.

This show exists to help you stop over-functioning, stop repeating yourself, and stop holding it all together just to keep the wheels turning. You deserve a business that works without breaking you.

The show is grounded in The IDP Way, a leadership system built on Integrity, Dignity, and Prosperity. If those words resonate, you’ll feel at home here. And if they challenge you? Even better. Growth starts with honesty.

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Thanks for listening... and for leading.

About your host

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James Mayhew

James R. Mayhew is a leadership coach and strategic advisor to founders and executives building fast-growth, values-driven companies. He created the IDP Way, a leadership system grounded in integrity, dignity, and prosperity. James helps leaders align people, purpose, and performance so their business can scale with clarity, not chaos.

He’s served as Chief Culture Officer, coached hundreds of leaders, and built execution systems that actually work.