making the case for increasing ei
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How EQ could help your organisation to recruit the right talent?TRANSCRIPT
Making the Case For Increasing Emotional Intelligence in Your
OrganizationOlivier Madel-Felicite
Acme Financial ServicesWanted: Sales Manager
The Candidates
Carlos Meagan
Carlos
Sales Associate
5 years sales experience
Consistently makes his quotas
Self starter, works independently
Good relationship with clients
Sometimes sets unrealistic goals
Not always a team player
Carlos loves sales
Described as a hunter
Well organized
Solves problems on his ownCarlos
Meagan
Sales Associate
4 years sales experience
Has not consistently made quotas
More of a team player
Good relationship with clients
Doesn’t overextend herself
Uses peer networks well
Meagan prefers the service side of sales
Good at cultivating relationships
Good organizational skills
Consults with others when working on problems
Meagan
What’s Emotional IntelligenceGot To Do With It?
Defining Emotional Intelligence
Emotional Intelligence Defined
• The ability to identify and manage emotional information in oneself and in others.
• The ability to focus emotional energy on required behaviors to get things done.
Stein, S.J., Mann, D., Papadogiannis, P. & Gordon, W., (2009), Emotional Intelligence Skills Assessment (EISA), Pfeiffer: San Francisco
Selection
Development
Leadership
Selection
US Air Force: The Problem
Recruiter turnover = 50% per year
Results of USAF Study
• Retention improved by 92%
• Cost savings over $2,700,000
• Savings in human costs
• High performers:– Worked fewer hours– Reported happier marriages
Sales Associates:American Express
Star Performer Analysis (SPA)
95 100 105 110 115
Total EQ-i
Low Perform ers High Perform ers
Case Study: American Express
Top Sales Associates at American Express Score
Higher on EQ-i
95 100 105 110 115
Total EQ-i
High Sales High Client Satisfaction
Low Perform ance-Com bined Metric High Perform ance-Com bined Metric
Closer Look at High Performance
80
90
100
110
120
Both High High CS High SG Both Low
Star Performer Analysis (SPA)
Leadership
Sales
Customer Service
Technical
Financial services
Insurance
Retail
Manufacturing
Hospitality
Airlines
Reality Shows
Development
Training Coaching
American Express Financial Services Emotional Competence Study
• Two groups:– 12 hours of emotional competence training– No training
• Training group increased overall sales: – 10% more than control group, and – 16% more than sales reps across the company
• Life insurance sales improved 20% more than control sites
• Result = estimated to have produced millions of dollars in increased sales
Leadership
The Study
186 CEO’s from YPO and IA
Completed EQ-i, company financial information, and Perception of Business Challenges Questionnaire
The Results
CEO’s scored higher in 8 of 15 EQ scales than general public
1
The Results
High profit company CEO’s had higher:
Companies were divided into High Profit and Lower Profit
2
Empathy Self-regard
Reality testing
Problem solving
The Results2
We could correctly predict a CEO’s profitability category 87% of the time based on EQ-i score
The Results3
Higher EQ CEO’s reported being less challenged by:
Managing growth
Managing people Training employees
Employee retention
Four Pillars of Leadership and EI
Based on research by:
Marian Ruderman, Ph.D.Center for Creative Leadership, Geensboro, NC
Sample = 302 senior managers and leaders
Ruderman, M.N., Hannum, K., Leslie, J.B., & Steed J.L. (2001). Leadership skills and emotionalintelligence. Greensboro, N.C: Center for Creative Leadership
Being Centered and Grounded
• Knowing your strengths and weaknesses
• Sense of control• Balance work & life• Straightforward• Related to:
– Social Responsibility– Stress Tolerance– Impulse Control– Optimism
Using a Participative Management Style
• Interpersonal relationship skills• Engages others through listening and
communication• Ability to form alliances and partnerships• Puts others at ease• Empowers others• Related to:
– Empathy– Social Responsibility– Interpersonal Relationships– Impulse Control– Happiness
Having the Ability to Take Action
• Willingness and ability to take action
• Seeks advice but acts independently
• Feels secure in decision making
• Make good decisions
• Related to:– Assertiveness
– Independence
– Optimism
Being Tough-Minded
• Shows resiliency• Perseveres in overcoming
challenges• Able to handle pressure• Related to:
– Self Regard– Stress Tolerance– Impulse Control
Who Do We Hire?
Carlos Meagan
Vote For Sales Manager
• Carlos
• Meagan
Who Did We Hire?
Carlos Meagan
Interpersonal Relationships Reality Testing
“A leader's intelligence has to have a strong emotional
component. He has to have high levels of self-awareness, maturity and self-control. She must be able to withstand the heat, handle setbacks and, when those lucky moments arise, enjoy success with equal parts of joy and humility. No doubt emotional intelligence is more rare than book smarts, but my experience says it is actually more important in the making of a leader. You just can't ignore it.”
-Jack Welchformer chairman and CEO of General Electric Co.
