How Emotional Competence = $$$
Does Emotional Intelligence (EQ) translate into real dollars in the real world?
Do interpersonal skills truly affect the bottom line?
Let us count the ways:
EQ = $$
- Partners in a multinational consulting firm with higher scores on ‘emotional intelligence’ delivered $1.2M more profit than other partners.
- Analysis of 300+ top-level executives from 15 global companies showed that ‘emotional competence’ differentiated the stars from the average executives.
- One study showed that the primary cause of derailment in executives is difficulty in handling change, being unable to work well within a team, and having poor interpersonal relations, all of which are measurable ‘emotional competencies’.
- Analysis of 515 senior executives by an international search firm revealed that
psychological traits were a better predictor of success than previous experience
or IQ. The study covered Latin America, Germany and Japan. The
results were almost identical in all 3 cultures.
The interactions of senior managers also have great impact on the bottom line.
- Ability to assess one's self accurately was associated with superior performance among several hundred managers from 12 different organizations. That is, superior performers demonstrated greater 'emotional intelligence'.
- Research in over 200 companies worldwide found that a top performer is 85% - 127% more productive than an average performer. Two-thirds of the difference was attributed to ‘emotional competence’. In top leadership positions, over four fifths of the difference was attributed to emotional competence.
- After training managers in emotional competencies (e.g. how to listen better,
how to help staff resolve problems, etc) a manufacturer
halved lost time due to
accidents, reduced formal grievances and increased production by $250K.
At another site, the training boosted production by 17%.
Managers given no training in emotional competencies recorded no increases.
- Managers in American Express’s ‘emotional competence’ training program grew their business by 18.1% compared to the untrained managers’ growth of 16.2%.
- It affects dogs too! The German post office reduced dog attacks by 80% by teaching canine psychology (e.g. how to read a dog's body language) to their postal carriers.
The point is: developing ‘emotional literacy’ is crucial to
- your personal success
- the success of your executive team
- the continued growth of your company.