In Working With Emotional Intelligence, Daniel Goleman reported that 80-90% of the competencies that differentiate top performers are in the domain of emotional intelligence. While IQ and other factors are important, it’s clear that emotional intelligence is essential to optimal performance. Emotional Intelligence is more than twice as predictive of business performance than purely cognitive intelligence and is more predictive of business performance than are employee skill, knowledge, and expertise. Numerous studies explore the financial implication of emotional intelligence; particularly how higher EQ leaders produce more powerful business results. One such study tested 186 executives on EQ and compared their scores with their company’s profitability; leaders who scored higher in key aspects of emotional intelligence (including empathy and accurate self-awareness) were more likely to be highly profitable. The Harvard Business Review recently reminded leaders that their excellence begins and ends with their inner resources: “Leaders who fail to develop self-awareness risk falling into an emotionally deadening routine that threatens their true selves.” Indeed a reluctance to explore your inner landscape not only weakens your own motivation but can also corrode your ability to inspire others.
In the last century, “inspiring others” might have looked like Donald Trump playing the tough leader in The Apprentice. But in real organizations today, leaders face a much more complex challenge of inspiration. Leaders who use their emotional resources to foster “engagement” (a sense of caring and commitment) deliver significant bottom-line results.
Teams with higher engagement are:
• 50% more likely to have lower turnover.
• 56% more likely to have higher-than-average customer loyalty.
• 38% more likely to have above-average productivity.
• 27% more likely to report higher profitability.
Marcus van Wyk