Mastering Emotional Intelligence: A Blueprint for Business Excellence

In the ever-evolving landscape of operating a business, corporation or even a small team, leaders who recognize the impact that emotional intelligence (EI) has on success are better positioned to forecast and navigate challenges, build resiliency amongst their teams, decrease staff turnover and occupational stress, and drive unparalleled performance when compared to leaders deficient in this skill.

In this article, we will touch onto what emotional intelligence is, the essential skills required to master it, and the undeniable benefits it brings to organizations, supported by studies and references.

“Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”

Emotional Intelligence and Why It Matters?

Emotional intelligence is the ability to recognize, understand, manage, and effectively use one's own emotions to connect with the wants, needs and emotions of others. It comprises a set of skills that go beyond traditional intelligence and technical expertise, emphasizing the importance of inter/intrapersonal capabilities in leadership. It is the essence of how humans effectively communicate with one another.

Scientific Impact of EI on Organizational Success

Studies by Daniel Goleman (1995) have consistently shown that leaders with high emotional intelligence exhibit a more profound understanding of their leadership style, leading to more effective decision-making. In fact, EI was proven to be twice as important as other technical skills such as business acumen, financial prowess, and IQ. ?In the same study, it was also found that organizations with a critical mass of EI in key leadership positions outperformed yearly earning goals by 20%.

In addition to Goleman, there are numerous studies which affirm the positive correlation between emotionally intelligent leadership and organizational outcomes, such as employee engagement/satisfaction, hiring/retention and innovation.

Employee Engagement - A study by Aon Hewitt (2016) revealed that organizations with engaged employees are 78% more productive than those with disengaged employees, showcasing the profound impact of emotionally intelligent leadership on workforce engagement.

Organizational Performance - Research by Porath and Pearson (2013) demonstrated that leaders who exhibit empathy and emotional intelligence contribute to a positive organizational culture, resulting in higher levels of productivity and profitability. Emotionally intelligent leaders are adept at creating a workplace where employees are motivated to perform at their best.

Employee Satisfaction and Retention - The link between emotionally intelligent leadership and employee satisfaction is well-established. A study by Gentry et al. (2016) found that leaders with high emotional intelligence contribute significantly to employee job satisfaction and retention. This is crucial in today's competitive talent market, where retaining top performers is a key driver of organizational success.

Innovation and Adaptability - Organizations led by emotionally intelligent leaders are more innovative and adaptable. A study by O'Reilly et al. (2014) highlighted the connection between emotional intelligence and organizational innovation, emphasizing the role of emotionally intelligent leaders in fostering a culture of creativity and continuous improvement.

Why Become Emotionally Intelligent?

According to British business magnate Richard Branson, “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.” If you subscribe to this belief, then EI is a necessity for leaders in your company.

But wanting to be an emotionally intelligent leader and actually becoming one are two different things.

It’s fair to ask, “Is EI a skill that can be developed, or are those with the skill born with it?” The answer is “both”. Scientific inquiry suggests that there is a genetic component to EI. But if that were the case 100% of the time, there would be no hope for the rest of us. Phycological and developmental research however do suggest that it can be learned. With the right approach and constant attention to detail, anyone can develop this skill. True emotional intelligence requires the mastery of the following skills to maximize one’s impact on their organization and their teams.

“Is EI a skill that can be developed, or are those with the skill born with it?”

Self-Awareness

At the core of emotional intelligence lies self-awareness—the ability to recognize and understand one's own moods, emotions, motivations and drives, and their impact on others. Self-aware leaders are attuned to their emotions on decision-making, their performance and human interactions.

A person who is self-aware is one who is grounded in their values as well as personal and professional goals. They make decisions for the right reasons and suspend high stakes decisions until emotions have cooled and they’ve self-reflected on the issue at hand.

Self-aware leaders are constantly checking their egos at the door and spend ample time asking themselves the tough questions and coping with the tough answers to those question. Self-awareness become their super power as the adapt, learn and grow as a leader.

Self-Regulation

Self-regulation involves managing and controlling one's own emotions in various situations. These leaders don’t allow themselves to be emotional prisoners of the moment. They take the time to consider every angle of a dilemma. They’ll ask themselves the following questions before responding:

1. Are there mitigating factors or external forces I don’t know about?
2. Did I have a role in this? Was there something I did or didn’t do which contributed to the outcome?
3. Am I responding emotionally to a situation because of its personal impact on me? Was it the right business decision?

Emotionally intelligent leaders do not let their emotions dictate their actions. Instead, they exercise restraint and respond thoughtfully. This in turn comes with proven benefits as researched by Salovey and Mayer (1990) who suggest that leaders who excel in self-regulation are better equipped to handle stress, navigate conflicts, and maintain composure in high-pressure situations.

Self-regulation is likely the most difficult of these skills to master, especially for those whose who struggle with their non-verbal communications. ?It’s human nature to have an instant and negative response to an emotional stimulus. Those who are expert self-regulators not only control their internal emotions but how they are portrayed outwardly when no words are said.

Tools to practice self-regulation include:

1. Exercise Regularly – Use physical activity to clear your mind.
2. Relationships – Surround yourself with positive people who have your best interests at heart.
3. Journaling – Writing out your feelings is a healthy way of expressing them.
4. Vulnerability – Self-reflect. Be open and honest with yourself. Be vulnerable around others.
5. Conflict Resolution – Talk out your problems. A counselor or therapists are great options. Address issues head on. Neglecting your emotions breeds resentment.

Motivation

Motivated leaders inspire and propel their teams towards the achievement of shared goals. Emotional intelligence involves not only understanding personal motivations of yourself, but those of your team and taking those motivations to create a positive and motivating culture within the organization.

A study by Locke and Latham (2002) highlights the correlation between leader motivation and employee performance, emphasizing the pivotal role of emotionally intelligent leaders in cultivating a driven and high-performing workforce. They found that when great leaders set clear and attainable goals and provide honest and timely feedback, employees are motivated to perform at high levels. In fact, their findings found that the more difficult and specific the goal is, the harder an employee will work to achieve it.

When it comes to setting goals to motivate your team, Locke and Latham suggest the following:

1. Use the SMART methodology.
2. Identify the right balance between pressure and performance.
3. Consider how you will reward the team for outstanding performance.
4. Friendly competition will often incentive team members to work harder.
5. Secure a commitment from everyone on the team.
6. Listen to feedback so that you may gage how the team is progressing.

Empathy

Of all dimensions of emotional intelligence, empathy is the one most easily recognized and appreciated by team members. Empathy is one’s ability to understand, share and acknowledge the feelings of others. This doesn’t mean everyone gets what they want when they're having a bad day, rather empathy means that the leader thoughtfully considers the emotional needs of their team (and other factors) before making decisions. Leaders who demonstrate empathy build stronger connections with their teams, resulting in increased trust and collaboration. This was confirmed in a meta-analysis by C?té et al. (2010) who found a positive association between leader empathy and employee job performance, emphasizing the role of empathy in organizational success and one’s satisfaction with their job.

Tools to develop empathy include, but are not limited to the following:

1. Listen – Ask leading questions about how the team member is feeling. Are they frustrated? How do they view the performance of their teammates?
2. Openness – Demand full transparency from your team, but most importantly, don’t hold it against them.
3. Messaging – Consider the emotional response of your team when communicating high stakes decisions/news. Craft your messaging appropriately.
4. People Are Not Robots – Know that people have lives outside of work. They experience divorce, death and heartbreak just like you. They require empathy from their leader – provide it.

Social Skills

Effective communication, conflict resolution, and relationship building are integral components of social skills within the realm of emotional intelligence. Leaders with strong social skills create a positive and inclusive organizational culture.

Developing “social skills” is not as easy as it sounds, however. It’s not simply a matter of being friendly or nice to people, rather it’s about developing relationships with a purpose and generating momentum of moving people in a direction you desire. This doesn’t mean you’re being “fake” in your friendships and communications, rather you acknowledge that nothing happens by accident. If you’re attempting to build rapport or consensus on a project, it takes skilled social and communication skills. This skill is developed through the following:

1. Networking – Establish a wide network of colleagues who can assist you when needed. Return the favor when the shoe is on the other foot.
2. Find Common Ground – It’s always easier to have a meaningful and productive conversation when each party sees the benefit of their participation.
3. Be Optimistic – People want to follow those who are upbeat and always have a positive energy. They are popular. People want to follow people who always see the glass as half full.
4. Employ Good Self-Regulation and Empathy – It’s easier to manage relationships when you are in control of your emotions and are empathetic to the feelings of others.

In Conclusion

In the contemporary business landscape, emotional intelligence is not merely a desirable trait but a critical competency for leaders aiming to achieve sustained success.

By mastering the skills of self-awareness, self-regulation, motivation, empathy, and social skills, leaders can elevate their emotional intelligence and, consequently, enhance their ability to lead effectively.

The studies and references cited in this article provide empirical evidence of the tangible benefits organizations reap when led by emotionally intelligent leaders. From improved employee engagement and satisfaction to enhanced organizational performance and innovation, the impact of emotional intelligence is both profound and measurable.

As business executives, let us embrace the power of emotional intelligence, recognizing it not only as a driver of personal success but as a catalyst for building resilient, thriving, and future-ready organizations. The journey toward mastering emotional intelligence is not just a professional endeavor; it is a commitment to creating workplaces that inspire, innovate, and endure.

1. Goleman, D. What Makes a Leader? Harvard Business Review. November - December 1998
2. Hewitt, A. 2016 Trends in Global Employee Engagement. AON. https://www.aon.com/ecuador/attachments/Engagement2016.pdf . Dec. 28, 2023.
3. Porath, C. Pearson, C. The Price on Incivility. Harvard Business Review. January - February 2013.
4. Gentry et al. 2016. Leadership and Followership. The Open University. https://www.open.edu/openlearn/mod/oucontent/view.php?id=68673&section=1 . Dec. 28, 2023.
5. O'Reilly, C. et al. The Promise of Problems of Organizational Culture: CEO Personality, Culture, and Firm Performance. Group & Organization Management. 2014, Vol. 39(6) 595-625.
6. Salovey, P. Mayer, J. Emotional intelligence. Sage Journals. 1990. Volume 9, Issue 3.
7. Kocke, E. Latham, G. Building a Practically Useful Theory of Goal Setting and Task Motivation: A 35-year odyssey. American Psychologist, 2002. 57(9), 705-717.
8. Cot', S. et al. Social Power Facilitates the Effect of Prosocial Orientation on Empathic Accuracy. American Psychologist, 2010. 101(2), 217-232.