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Why is EQ Vital for Organizations to Develop?

Authored by: Roger Pearman

In the 1950s, W. Edwards Deming declared that the number one job of managers is to ā€œstamp out fear.ā€  He noted that people are more productive, healthy, and satisfied with their work when they feel safe.  When you read his material, he is clearly promoting the importance of psychological safety and high levels of what we call emotional intelligence (EQ).  As the President of one financial institution said during a workshop I facilitated, ā€œbeing emotionally intelligent is the right thing to do.ā€  In studies of why people leave jobs, the answer often is that they leave managers. 

Alan Mullaly at Ford Motor Company

One of the most public examples in recent business life is the success of Alan Mullaly as President of Ford Motor Company.Ā  He took a company near bankruptcy and left it with billions in the bank.Ā  While his business acumen was vital to his success, it was his display of EQ that created a culture that achieved Demingā€™s goal and threaded the entire enterprise with a desire to reach for extraordinary achievements in quality and sales. He focused on the others around him and not on himself.Ā  With consistency, he energetically asked how he could help others be successful.Ā  He said outrageous things for a business environment like: ā€œRemember you are here to love and be loved and behave as though it is true.ā€Ā  Work was a joyful act of optimism about the future. He put in place processes to foster new and innovative engagements throughout management so that workers felt heard and that they could make a difference.

McKinsey and Google Research

A McKinsey study about why some financial institutions outperformed others, they found that analyzing 50 variables revealed the answer: ā€œ front-line interaction skills.ā€ When the analysis was further analyzed, the skills were what we would consider EQ: active listening, empathetic responses, and creating a collaborative ā€œweā€ to find solutions. 

When Google published the Project Aristotle report on why some teams outperformed others, the factors were simple (e.g. intentional managing the give and take in meetings) and required psychological safetyā€”all of which are anchored in EQ.

EQ Capabilities

So, EQ capabilities matter to the performance of individuals, teams, and the enterprise.  And some of these capabilities are more important than others such as:

  1. Self-awareness – Leaders with high EQ have a deep understanding of their own emotions, strengths, weaknesses, and triggers. This self-awareness allows them to lead authentically and make informed decisions.
  2. Empathy – Emotionally intelligent leaders can put themselves in othersā€™ shoes, understanding their teamā€™s feelings and perspectives, which fosters trust, loyalty, and stronger relationships.
  3. Effective Communication – Leaders with EQ communicate clearly and thoughtfully, considering both the verbal and non-verbal cues of their audience. This improves transparency and prevents misunderstandings.
  4. Emotional Regulation – Leaders with high EQ are skilled at managing their emotions, staying calm under pressure, and responding to challenging situations with composure, which promotes stability within the team.
  5. Conflict Resolution – EQ helps leaders address conflicts in a constructive and empathetic manner. They can mediate disputes, maintain harmony, and ensure that issues are resolved with mutual understanding.
  6. Building Relationships – By fostering emotional connections, emotionally intelligent leaders build strong interpersonal relationships, creating a supportive and collaborative team environment.
  7. Motivation – EQ enhances a leaderā€™s ability to inspire and motivate others by understanding their teamā€™s emotional drivers, fostering a sense of purpose and belonging in the workplace.
  8. Adaptability – Emotionally intelligent leaders are adaptable, able to manage change effectively by understanding the emotional impact it may have on the team and helping them transition smoothly.
  9. Influence – Leaders with EQ are better able to influence others by appealing to their emotions and values, making them more persuasive and inspirational in driving positive behaviors.
  10.  Decision-Making – EQ improves decision-making by allowing leaders to recognize how emotions can impact judgment. Leaders with EQ can balance rational thought with emotional insight, making balanced and holistic decisions.
  11. Teamwork and Collaboration – Emotionally intelligent leaders foster a sense of camaraderie and collaboration by understanding team dynamics and encouraging open communication and mutual respect.
  12. Trust-building – EQ enables leaders to build trust through consistent emotional transparency and honesty. When leaders are emotionally attuned to their team, they foster a culture of trust and integrity.
  13. Cultural Sensitivity – Leaders with EQ are better able to navigate diverse teams, respecting different cultural backgrounds and emotional norms, which helps create an inclusive environment.
  14. Resilience – EQ enhances resilience in leaders, helping them bounce back from setbacks and maintain optimism and determination, which sets a strong example for the team during tough times.

Developing and enhancing our EQ skills and capabilities is a worthwhile endeavor that provides us with many professional and personal satisfactions.  The contribution to the well-being of oneself and others makes the ffort especially important.

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