WHAT IS EMOTIONAL INTELLIGENCE?.

Emotional Intelligence (EQ) is taking the business world by storm. Attracted by tales of its impact, more and more leaders are starting to understand its potential in advancing their own team’s performance.

In this article, we’ll explain what Emotional Intelligence is, why it matters to executives looking to get the best out of themselves and those around them, what results it delivers, and how you can begin and progress your own journey with EQ training.

What is the Emotional Capital Framework?

 

The behaviours, characteristics and traits that form Emotional Intelligence have been assembled into a unique framework devised by RocheMartin known as Emotional Capital.

Why is Emotional Intelligence important?

 

Emotional Intelligence is so widely valued by the business community because of the proven impact it can have on both collective and individual performance.

Academic studies and real-world implementations have consistently shown that strong EQ skills correlate directly with outstanding results in a range of different fields.

These can include:

Improved profits and shareholder returns

In 2003, Professor Raj Sisodia published a truly groundbreaking piece of work. He identified 72 companies with high EQ capabilities. Then he tracked and analysed their financial performance over a 15-year period. The results were remarkable. Collectively, those 72 companies had outperformed the returns generated by the S&P 500 by a factor of 10.5x.

Lower recruitment costs

A large construction firm suffering high employee turnover rates was spending a huge amount on ongoing recruitment, constantly having to re-advertise and appoint for posts that had only recently been filled. Its focus on EQ training reduced the employee turnover rate to such an extent that it saved almost $50m per year in associated recruitment costs.

More sales

Insurance firm Metropolitan Life was one of the earliest to discover and appreciate the impact of strong EQ skills on effective performance. By monitoring the performance of its sales reps, and tallying their performance with their EQ capabilities, it found that reps with high levels of optimism outsold their peers by 37%. The most optimistic sales reps sold 88% more policies than the company’s most pessimistic reps.

Better customer service

When Australian telecommunications company Optus engaged with RocheMartin’s Emotional Capital framework, it quickly saw results. Leadership scores jumped by 16%. Engagement and customer focus both increased by 6%. All of these increases could be attributed to the leadership development programme it completed with EQ at its heart.

Better decision making

Over a period of five years, Sky used RocheMartin’s EQ training to develop its executives. More than 800 executives completed a programme designed to improve innovation, productivity, and leadership. Within nine months, the results were already starting to show. Levels of optimism increased by 13%, while adaptability (+17%), empathy (+25%) and relationship skills (+21%) also jumped significantly. This left the company perfectly placed to maintain its dominance as one of the world’s biggest media powers.

Improved team morale

Daniel Van den Broeck, Senior Vice President, Applications Northern Europe at Oracle, is unequivocal when asked about the impact of EQ training on his organisation. Ninety-two percent of Oracle sales staff said they had more positivity towards their job. Almost nine in ten felt more confident.

Read >> Assessing the cost of Emotional Intelligence training. Is it worth it?

 

How can you use Emotional Intelligence in day-to-day business operations?

 

Many executives and HR leaders often have a misconception about Emotional Intelligence. Before they begin their own EQ training, they can believe that Emotional Intelligence is another theory-based exercise.

They can even see it as a tick-box exercise so they can say, “yes, we’ve done Emotional Intelligence” when it comes to annual performance reviews.

But those beliefs couldn’t be further from the truth. The power of Emotional Intelligence is that it is grounded in real-world results. Emotionally intelligent organisations have been shown over and over again to achieve consistent results in fast-paced commercial environments.

The impact of strong EQ skills has been observed in six key areas of most organisations’ day-to-day operations.

1. Leadership development accelerates at pace when leaders and future leaders commit to a programme of EQ training. Decades of research have shown that the most effective leaders are able to build strong, professional relationships; understand their team’s desires and motivations; and speak clearly and calmly in difficult situations. All of these capabilities are a direct result of performing strongly in the 10 core competencies embedded in the Emotional Capital framework.
2. Cultural transformation can be embedded into a company’s DNA if leaders know how to define the organisation’s purpose and then demonstrate those values in practical behaviours. Over time, if those day-to-day habits are repeatedly reinforced and employees are shown how to set an example to others through their lived behaviours, then the company culture can be a real, tangible asset – and not simply an empty promise.
3. Diversity and inclusion becomes much more likely, and the positive results from it much more real, if leaders have the EQ skills to create the psychologically safe environment that enables all team members to thrive. High levels of trust, empathy and self-awareness must be present in both a leader and the wider team, and these are all essential EQ skills.
4. Wellness and wellbeing can be improved significantly through strong awareness of EQ and its competencies. Maintaining good levels of mental health is now a major challenge facing most businesses. Those who have leaders equipped to regulate their emotions, and help their colleagues do the same, are more likely to avoid the difficulties that can arise from poor mental health. It also enables teams to better handle their attention spans, relationships, and ongoing performance.
5. Recruitment and selection is made easier and more accurate when leaders have the Emotional Intelligence to be able to identify successful candidates that will complement and add to the existing team dynamic. Having the knowledge to be able to recruit based on EQ performance, rather than technical knowledge or existing skills, is a key differentiator among organisations who consistently identify and attract high-performing individuals.
6. Sales negotiations are significantly enhanced when your representatives are able to identify, understand and react to your counterpart’s emotional needs. This leads to higher conversion rates at all levels of your sales funnel, helping to drive increased revenues and profits for the whole business. The example of Metropolitan Life, explained earlier in this article, is a powerful demonstration of the impact of strong EQ skills on closing potential deals.

Read >> Emotional Intelligence training: How EQ helps business leaders navigate