Is Emotional Intelligence the “X” Factor?

For companies that want to have an edge, leadership styles have changed. Terms surfaced over the last thirty years such as, “empowerment”, and “active listening”. Research has been able to quantify why concepts like these make a difference in many areas, some of which include productivity, low turnover, and higher profitability.

Emotional Intelligence (EI) has come to define the theory and correlation between organizational success and long-term sustainability of key players and managers in their companies and over their careers. Goleman is noted for establishing the domains for EI, while Seeta Gupta expanded with a scaled subset for each domain.

Various iterations are based on their work. In common, they demonstrate that the successful leader demonstrates a very clear vision. Additionally, the successful manager knows how to achieve the company vision while enrolling the staff in an empowering way.

Key Emotional Intelligence Factors

EI is a key element in helping an individual or leader to understand their emotions and the effect they have on others around them. Whether a personal relationship or a role in a company of any size, the understanding of EI impacts both short and long-term results. To better understand the model, it is important to understand the key elements and their associated hallmarks.

The Goleman Emotional Intelligence Model

Daniel Goleman published his book, Emotional Intelligence in 1995. While it wasn’t the first work on EI, which was in 1985 by John Mayer and Peter Salovey, it became one of the most accepted sources for information on the subject. Following is the basis of his model. (McLoughlin, 2018)

Self-Awareness.  

People who are self-aware are conscious of their own as well as others’ feelings. This clarity can direct a person on how to interact with individuals or groups. They understand that their mood and how they express it has an impact on those around them.

One of the responsibilities of a leader using an EI model is to constantly self-assess. Personal strong emotions can cloud judgment and affect outcomes. Being able to separate ones’ ego from the equation is beneficial – although this may take a lifetime to achieve.

EI leaders also exhibit a sense of self-confidence. It is critical to maintain humility, or the appearance of arrogance will defeat the positive results and goals of AI. Leaders are often self-deprecating. Additionally, when goals are met they credit the team, and when failures occur they accept the responsibility.  

Self-Regulation.

This is a very demanding skill for a person using AI. Each of us has triggers and emotional reactions to everything we encounter. By the nature of being a human being, we want to make everything mean something.

To self-regulate it is imperative to be able to recognize impulsive reactions that may cause an immediate, if not damaging, response. A person that has mastered self-regulation can be a part of a situation and let go of any pre-conceived notions, avoid judgments and remain neutral.

In actual practice, practicing this skill has to be authentic. People who think they are hiding their emotions well are fooling themselves. Operating with integrity and proving trustworthiness develop a deep relationship with others. This sets a solid foundation for success.

A leader also has to be open to change. That can also mean having to wait for a team to embrace a concept or solution. Change cannot be forced – it needs to be embraced.

Motivation. 

Successful leaders and employees are often described as self-motivated. They can be seen to enjoy their jobs, be looking for ways to improve things, and generally be happier and do better work.

It is important not to confuse motivating a person with being individually motivated. It is widely accepted that attempting to motivate someone can be transient. Transformation management style has a higher rate of success when an individual is seeking to find motivation within themselves. This will be discussed further with transformational styles.

Motivated individuals exhibit a positive relationship between their work and their successes. They are not disabled by setbacks and have the ability to get back on track. Focus is a key factor in maintaining a healthy, ongoing motivation-style.

Empathy.

A good leader is willing to consider the needs of every individual. Employees are not simply tools for a company to use to complete tasks. By having the ability to see things from their perspective, a leader can be empathetic to their situation. It is this empathy that deepens relationships and creates commitment.

A good example of empathy is a boss that finds out an employees’ mother just died. A boss will ignore the situation. They may expect them to continue working or worse, make an insincere comment.

A leader will pull them aside and let them talk about it. They may suggest they take the day off, or even insist it, to be with family. There are many ways empathy can be demonstrated. If authentic the employee will be supported, and the entire staff will see how the company manages the situation in a positive way.

When empathy is present, employees tend to be more loyal to the company. This benefits them as well as the company. A good manager trained in EI will understand that they need to be aware of other people, their body language, and the “feeling” in the room. Being self-absorbed is not a quality that works with EI. Constantly being conscious of a “being of service” attitude demonstrates empathy at the highest levels.

Social Skills.

One of the key skills in communication is how to listen. If a leader exhibits EI consistently, their staff will be comfortable communicating successes, problems, and failures equally easily. It is imperative to listen without judgment or expression.

The second part is knowing what to say and when to say it. Many leaders walk into a room and don’t consider the current situation or how the people are feeling. In this case, a prepared conversation falls on deaf ears.

A good leader can listen with more than their ears. They can walk into a room and observe. The information they receive may signal saving the planned topic for a later time. It may suggest addressing what is going on in the room.

There are several techniques that are used by professionals. One is to make sure to “speak into someone’s listening”. That suggests that you speak to each individual or group in a way they understand.

Another suggests that it isn’t time to ask a question until you have had sufficient supporting conversation to get the answer you are looking for. This can be perceived as a manipulation, but when the motive is good, it is a way for everyone to “buy into” a project or goal.

Leadership Advantage of Emotional Intelligence

Some companies may not be open to a new style of management. Other companies may unconsciously be operating with some aspects of EI in place. And finally, others may be committed and want to do everything they can to foster the culture to reap the benefits that EI has to offer.

There are lists published every year of the “best companies to work for”. Employees stay there for years, are loyal, have positive outlooks, and are self-motivated. There are other lists of the worst companies. How are these determinations made? Why do some companies have people begging to work there while others run for the exit signs? EI offers the answers to these questions.

Outside of the main points of the Goleman model, there are many other direct and indirect benefits. First is a unified driving force within the company. When leadership is consistent and delivers the same message, employees feel a sense of direction. Something this obvious is lacking at many companies. (Mind Tools, 2018)

When leadership is consistent, management example helps develop staff. It is hard not to benefit from a positive example. It’s human nature to want to feel better about ones’ self.

This also is an indirect revelation of “train-the-trainer”. Some staff will rise to the top given the opportunity and set themselves in place for future management positions. With several generations of this, a company culture becomes embedded.

Another area of improvement is a significant reduction in employee turnover. Companies with EI save money in replacing and training new employees. They also can reinforce and maintain a culture focusing on growth.

When an employee is satisfied with their work and acknowledged for it, pay is no longer the most important condition of satisfaction for employment. In fact, a competitor may offer more, but in most cases, they will turn down the job.

EI also fosters higher productivity. People come in early and stay late. They also become fierce advocates for the company.

There is a key benefit to the results generated by EI. This work gives a company an advantage over their competitors. They may not share the same operating style. They won’t understand that the playing field they share isn’t level at all. (Simonovich, 2018)

Promoting Mission and Vision

When the strategic business and marketing plan considers EI as a part of achieving a companies’ goals, it’s easier to get buy-in on the mission and vision. It begins with the mission statement that creates a framework for the being that is the company. If this vision is driven by the senior staff, then it can be propagated it through the management chain and employees can be implemented.

With a defined mission, managers and staff are influenced by the Goleman model. When all departments and every employee within those departments is enrolled in the vision, powerful results occur. This is yet another example where competitors don’t understand why they are not on an equal playing field.

In some companies, however, senior management will want the front-line managers to drive results through EI without participating themselves. This is not sustainable. Companies with this hybrid approach often see greater damage than good. Enlightened staff becomes clear of their dissatisfaction and leave for other companies. (Goleman, 2017)

Compare and Contrast Styles

For this comparison, we will look at the effects of transformational and transactional management styles. Some companies tend to be best served by one style while other companies lean in the other direction. Some companies are structured in such a way that both styles are utilized. (Surbhi, 2015)

There are companies that people might consider that stand out as candidates for a particular style. For example, the military is a very rigid organization with rules, procedures and leadership structures. This is based on transactional style.

Steve Jobs was considered to be very transformational. This was still tempered with a strong hand maintaining focus and often unrealistic demands. He encouraged people to be their best and created an environment that fostered the ability for that pursuit.

Bill Gates, on the other hand, was very transactional. He had a close circle of leaders that set the course for the company. (Mirror Business, 2015) This left very little freedom for anyone outside of that group to be creative. While they dominate the industry as a software leader, they lack imagination.

Finally, there is a very unique example. If you consider a movie studio such as Paramount Studios, you will be looking at a classic example of transactional style. This works for maintaining budgets and operating the business aspects of the movie industry.

The production companies that make the movies, however, are very transformational. Movies themselves are produced by very creative production companies like “Bad Robot” and others. It is the job of the Executive Producer to isolate their team from the studio so creative will not be compromised. It is and always has been a very difficult relationship.

Transformational Style

Transformational style is often thought of for cutting-edge companies that are in Silicon Valley, or other creative companies. This style, however, has a stronghold in many diverse industries. When in a competitive marketplace, this style of management often gives a cutting edge over competition that still operates with transactional style.

Transactional style listens, constantly strives to improve itself, rewards communication, and empowers every individual to achieve their potential. In companies that operate this way, turnover is low, productivity is high, and money is not the sole motivator of the employees. This method of management is often the distinction between companies in direct competition. (Career 2 Next Orbit, 2007)

Some of the leaders at the forefront of transformational management style include Peter Drucker. Drucker was a professor and management consultant who predicted some of the biggest changes in the 20^th century. He is attributed with the slogan, “If you want something new, you have to stop doing something old.”

Ross Perot once ran for the President of the United States but is best known for creating his company, Electric Data Systems (EDS). Unlike the work he had done at IBM, he was a master of empowerment. He is famous for his belief that, “Punishing honest mistakes stifles creativity. I want people moving and shaking the earth and they are going to make mistakes.” (St. Thomas University, 2014)

Transactional Style

Transactional style does have benefits. These can include focus on goals, creating rules and policies to control outcomes and incentivize staff to reach performance goals. It is most beneficial in situations where creative in minimal such as an assembly line.

There are negatives, however. The only reward to staff is money. There may be no personal satisfaction from doing the job or showing initiative. In fact, showing initiative may get a person in trouble with their supervisor. Transactional style can also lead to a high turnover rate with the best staff, while the conforming people remain being most comfortable. (Joseph Chris , 2015)

Conclusion

Given the two different management styles, can one be considered to be better than the other? Does one style tend to produce better leaders over the other? That is a question that the executive management team needs to consider when they create their strategic plans.

The best style may be to take the best from both. There are times when we need to fall back on established guidelines. That isn’t necessarily a bad thing. And ultimately, leaders need to make final decisions.

What will allow leaders to make good calls on decisions can be based on transactional methods? For a long-term strategy, a company will benefit from attracting the best talent, having the lowest turnover, and a dedication other companies envy.

Having an understanding of EI, not just intuitively, but in practice, can be the difference between a good company and a great company. In markets and industries that concerned for efficiencies in the face of crushed profit margins, EI and management style are more than esoteric concepts. They are proven with quantifiable results that benefit both stakeholder and shareholder alike.

All leaders need to be good communicators. That is a given. Some departments may be driven by rules more than others. That is true anywhere.