Does your executive team work at cross-purposes? Are you successfully executing your vision? If you are struggling to take your leadership or your organization to a higher level of performance, you may be unaware of
power of emotional competence as a performance differentiator. Several decades of research in Emotional Intelligence (EI) have demonstrated that EI is what differentiates outstanding performers from average performers.While technical skill and cognitive ability are essential competency areas for leaders, emotional intelligence has been shown to be twice as important in outstanding performance as
other two competencies combined! In fact, 80-90% of
difference between outstanding and average leaders is linked to EI. The abilities that drive successful execution of vision – motivating, guiding, inspiring, listening, persuading, and creating resonance – are emotional competencies. If you want exceptional business results, you should assess your EI or your team’s EI, for these are abilities that can be developed.
What is emotional intelligence? Dr. Daniel Goleman, a thought leader in
field, defines it as “the capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships.” Thus, emotional competence integrates thought and emotion.
There are four domains of emotional intelligence - self-awareness, self-management, social awareness, and relationship management – within which are eighteen competencies that have been identified as differentiating characteristics in outstanding performers. Effective relationship management is at
heart of great leadership but self-awareness is considered
linchpin for developing
other three domains. Emotionally intelligent leadership, then, builds up from a foundation of self-awareness.
Furthermore, a leader’s EI creates a certain culture or work environment. Organizational research done by
Hay Group, co-creators of
Emotional Competence Inventory (a 360 assessment of EI), discovered that “EI is carried...like electricity through wires....the leader’s mood is quite literally contagious, spreading quickly and inexorably throughout
business.” Feelings and emotions have a direct impact on effectiveness, efficiency and ultimately
bottom line.
Leaders need to understand that their single most important task is to create resonance. Put another way, they must create a positive emotional environment that frees
best in people. Climate, or how employees feel about working in
organization, accounts for 20-30% of business performance; and 50-70% of how employees perceive their organization’s climate can be traced to
actions of one person -
leader.
How does this translate to
bottom line? In one study, experienced partners in a multinational consulting firm were assessed on
EI competencies plus three others. Those who scored above
median on 9 or more of
21 competencies delivered $1.2 million more profit from their accounts than did other partners – a 139 percent incremental gain. Another study of 130 executives found that how well people handled their emotions determined how much people around them preferred to deal with them.
Harnessing Emotional Intelligence for High-Performing Teams