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EI: Driving Business Performance
by Henry Evans
Published in CEO-IQ, Volume 6, May-June 2004
As an executive coach I have studied and used many methods to help develop executives into successful leaders. Some of the most compelling research about what makes leaders succeed deals with emotional intelligence (EI).
Emotional intelligence is a set of skills or competencies that influences one’s ability to cope with life’s demands and pressures. It includes the capacity to recognize feelings, to motivate and to manage emotions in both ourselves and others.
Research in this field has shown that developing emotional competencies, such as initiative, self-confidence and the ability to listen to others, can increase emotional intelligence and lead to a significantly positive impact on individual and group performance.
EI and Recruiting Superstar Employees
An analysis of more than 300 top-level executives from fifteen global companies showed that six emotional competencies distinguished stars from the average performers: Influence, Team Leadership, Organizational Awareness, Self-Confidence, Achievement, Drive and Leadership. (Spencer, L. M., Jr., 1997).
EI and Improving Productivity
After supervisors in a manufacturing plant received training in emotional competencies, lost-time accidents were reduced by 50 percent, formal grievances were reduced from an average of 15 per year to 3 per year, and the plant exceeded productivity goals by $250,000 (Pesuric & Byham, 1996).
EI and Outperforming Peers
In a large beverage firm, division leaders with emotional intelligence competencies outperformed their targets by 15 to 20 percent. - Those who lacked them under-performed by almost 20% (McClelland, 1999).
EI and Increasing Productivity
Optimism is another emotional competence that leads to increased productivity. New salesmen at MetLife who scored high on a test of “learned optimism” sold 37 percent more life insurance in their first two years than pessimists (Seligman, 1990).
EI and Improved Sales Results
Another EI competence, was linked to success for a retail chain. Store managers that were best able to handle stress had higher net profits, sales per square foot, sales per employee, and per dollar inventory investment (Lusch & Serpkeuci, 1990).
EI can be measured and learned. An executive that is determined, passionate and future-focused is more likely to improve their EI with the guidance of a mentor or coach.
By developing your emotional intelligence, as well as that of your executive staff, the overall performance of your company is substantively improved.
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