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Emotional Intelligence

January, 2001

So what is all this recent hype about Emotional Intelligence (EI)? What is EI?
How can EI be measured by my Emotional Quotient (EQ)?
Why is EI important for leaders and managers and parents and all of us?
How will improving my EQ help my business?

You may know that the best-selling psychology book of all time is Daniel Goleman's Emotional Intelligence, Why it Can Matter More Than IQ. (1995, isbn 0-553-37506-7). You may know that in the last 10 years we have doubled our knowledge about the brain. But do you know the connections between EI and those who are successful working with other people?

Emotional Intelligence may be broadly defined as one's self- management and interpersonal skills. Some characteristics of emotional intelligence include stress tolerance, adaptability, empathy, impulse control, optimism, and problem-solving skills. Recent research by Goleman and replicated by others tells us that EI is the most important characteristic of successful leaders. Thankfully EI can be taught, EI can be developed, and action learning is the best way to do so. At the International Summit on EI in Chicago last month I learned that there is a strong business case for developing the emotional intelligence of individuals and work groups.

A brief history: The phrase Emotional Intelligence was coined in 1990, as a result of research in multiple intelligence such as kinesthetic or spatial intelligence. Have you ever wondered why some people move gracefully without falling, or why others have a good eye for beautiful marketing designs? Whether truly an "intelligence" or whether an "aptitude", the point is that these people excel in their work in different ways. Some psychologists theorized that an aspect of social intelligence enabled some people to always excel in sales, or leadership, or work with other people. But what were the mechanisms that lead to such excellence? Recently we have learned that there are chemical patterns in our brain that lead people to act in certain ways. For instance if you see someone reaching in their pocket for something you might wonder- is it a gun or a stick of bubble gum? Because you are not sure, you do not know how to respond. You could freeze in fear, you could run away, or you could fight back. We know the neurobiological patterns for each response. And we know that freezing- in this example- may lead to safety or reward or more choices. We also know how to train people to control their emotional responses to actions, so that they can be more effective.

EI is not the same thing as IQ, Intelligence Quotient, although each can be measured. They are quite different assessment inventories but the results of EQ assessment inventories are scientifically reliable and they have predictive capability. So for instance, if your work is in customer service, you can assess the EQ of your current sales group, or of your potential sales people.

Why do so? Goleman found that EQ, not IQ, is a predictor of successful leadership. In fact he states that 80% of effective leaders have high EI. Whether you want to develop your personal leadership skills or whether you want to develop the interpersonal skills of your work group, specific training can be useful.

So how useful? Very. Here are some excerpts from the Business Case for Emotional Intelligence (for more examples see eiconsortium.org)

  • In American Express Financial Advisors group, insurance sales agents who were weak in emotional competencies such as self-confidence, initiative, and empathy sold policies with an average premium of $54,000. Those who were very strong in at least 5 of 8 key emotional competencies sold policies worth $114,000 (Hay/McBer Research and Innovation Group, 1997).
     
  • After supervisors in a manufacturing plant received training in emotional competencies such as how to listen better and help employees resolve problems on their own, 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). In another manufacturing plant where supervisors received similar training, production increased 17 percent. There was no such increase in production for a group of matched supervisors who were not trained (Porras & Anderson, 1981).
     
  • At L'Oreal, sales agents selected on the basis of certain emotional competencies significantly outsold salespeople selected using the company's old selection procedure. On an annual basis, salespeople selected on the basis of emotional competence sold $91,370 more than other salespeople did, for a net revenue increase of $2,558,360. Salespeople selected on the basis of emotional competence also had 63% less turnover during the first year than those selected in the typical way (Spencer & Spencer, 1993; Spencer, McClelland, & Kelner, 1997).

So what are your possible next steps? If interested in learning about EI, using an assessment inventory to assess your group's strengths and areas for improvement, training that develops your EI or the collective EI of your work group I encourage you to do some internet searching or give us a call.

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