Emotional Intelligence Competence : An Approach To Positively Impacting The Bottom Line
Helping people enhance their Emotional Intelligence (EI) competence can offer an organization significant benefits that can improve profitability. Leaders and employees can make better decisions and take more appropriate action when they are able to access both theirs and other’s emotions. These actions and decisions can directly impact the business’s customers and business results.
In 1994, Heskett et. al. identified a group of factors driving business profitability (HBR “Putting the Service-Profit Chain to Work”). Their work remains relevant today as it provides a model describing how an organization’s profitability is dependent upon effective leadership. The leader’s emotions drive the organization’s climate and culture. More specifically, the emotions of the leaders affects the culture by impacting the emotions of the employees, which, in turn, affects employee satisfaction, which, in turn, impacts how willing employees are to put forth the extra effort (i.e., efficiency and productivity) and their loyalty.
And further, how the employee feels and performs his or her work impacts customer satisfaction, which, in turn, determines customer loyalty. In the end, it is customer loyalty that directly impacts business results.
This chain of relationships is driven by the leader’s emotions. The leader is not necessarily the CEO, Vice President or Director. The leader is the individual in charge of any department, manager, supervisor, staff etc. The point is that self-leadership is one of the most important skills upon which to focus. It is the internal ability to lead oneself to make the best decisions, exhibit the most appropriate behaviors, or take the best actions.
Positive and negative emotions affect every employee and the customers they serve. For example, when employees experience negative emotions, the result might be high stress, poor teamwork, increased conflict, low morale, poor quality, increased turnover and more. This would compromise employee performance, business objectives and key initiatives. These events may lead to decreased customer satisfaction, increased customer complaints and ultimately customer defection. In the end, profitability would be compromised.
The value of developing EI skills is supported by additional research. Daniel Goleman, author of the best-selling book, Emotional Intelligence, reported that EI was twice as important as other factors for excellent performance He also found that EI factors rather than cognitive factors made up 90% of the difference in the profiles between average performers and star performers (HBR Nov./Dec., 1998). Additionally, he discovered that when top management had positive moods, they worked together more cooperatively and achieved better business results (Primal Leadership, Goleman et. al.).
The Results:
Unlike typical organizational improvement interventions such as effective communication or team building, EI skill development is unique in that it has the potential to positively impact a multitude of organizational issues simultaneously. It goes beyond just leadership competencies or management skills. The effects are profound. Additionally, EI skill development complements and enhances other values-based and principle-centered programs. As foundational skills, EI skills enable people to improve the “how” of achieving results.
Reported EI training results are significant. Participants have experienced improvements that range as high as 35% to 40% in increased teamwork, increased personal productivity, and reduction in stress and worry, and similar improvements in personal motivation, management of emotional reactiveness, work/life balance and more.
About the Author
For over a decade, Byron Stock, a former engineer and director of corporate education has focused in the area of Emotional Intelligence Competence. He guides individuals and organizations toward excellence by helping them increase their EI as a powerful tool to achieve strategic objectives, lead change and create resilient, high performing organizational cultures. Learn about Byron’s quick, easy, proven techniques to harness the power of your Emotional Intelligence in his new book, SMART EMOTIONS for Busy Business People available through his website www.ByronStock.com
