roi of emotional intelligence in leadership
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The ROI of Social +Emotional Intelligence in Leadership
Jonathan “JJ” Jarrell
Attributes Exercise
Think of an individual in your life who has had a tremendous positive impact on you in your life or in the workplace – a friend, family member, mentor, supervisor, colleague, or another person. . .
On sticky notes, jot down the attributes that make this individual so special, the qualities that make you admire this person – one attribute or quality per sticky note – 3 minimum, 5 maximum. When finished, just put these aside for later.
“Keep away from people who belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”
- Mark Twain
Social + Emotional Intelligence: A Leadership & Career Imperative
“Emotional intelligence is much more powerful than IQ in determining who emerges as a leader.
IQ is a threshold competence. You need it,
but it doesn’t make you a star.
Emotional intelligence can.” - Warren Bennis, author of On Becoming a Leader.
Ever have a supervisor, colleague or direct report who was lacking in
S+EI skills? What
IMPACT did this have on you?
What IMPACT did this have
on the organization? How did
YOU handle the situation? What
did YOU do?
S + EI Enhance Leadership Skills and Career Advancement
1. It provides a language and framework for understanding
2. An important skill set for leaders and managers to use and model
3. Vastly expands our understanding of ourselves and others
4. S+EI = Better Leadership (and greater productivity, employee engagement, customer satisfaction, and profitability)
“Leaders with higher S+EI produce more powerful business results and greater profitability.”
-- Emotional Intelligence of Leaders: A Profile of Top Executives, Steven Stein,
Leadership & Organization Development Journal, 2009
What is S+EI?
Social and emotional
intelligence is the ability to be
aware of our own emotions and
those of others, in the moment,
and to use that information to
manage ourselves and manage
our relationships
A WORKING DEFINITION
Social + Emotional Intelligence
• “ 80 – 90% of the competencies that differentiate top performance are in the domain of EI.”
Daniel Goleman in Working With Emotional Intelligence, 1998
• “EI is more than twice as predictive of business performance than purely cognitive intelligence.”
Gerald Mount in The Role of Emotional Intelligence in Developing International Business Capability, 2006
• “Leaders with higher social & emotional intelligence produce more powerful business results and greater profitability.”
Steven Stein in Emotional Intelligence of Leaders: A Profile of Top Executives, Leadership & Organization Development Journal, 2009
Tyrant’s
Harsh, high-handed, dictatorial
Abusive, abrasive, power hungry
Their need to feel omnipotent will demean and trample others
Bully’s
Habitually cruel
Threatening, belittling
Feel justified in bullying “weaker” people
Seek control through fear and intimidation
Often a power differential
Time Bomb’s
Unexpectedly erupt
Adults who throw childish tantrums
Can’t tolerate opposing opinions
Suddenly erupt in shouting tirades, rage, blaming everyone else
The Solution?
Social + Emotional Intelligence
Assessment (for awareness)
Training programs
Introducing the concept into the
culture
Individual development
programs (coaching)
Objectives for Today’s Session
Overview of Social + Emotional Intelligence
What is it & why do we care?
The business case (ROI)
and the health & wellness
case
The 26 distinct
competencies
How to measure
S+EI
Too Much College, Too Little Kindergarten
IQ: 187
EQ: 0
S+EI Four-Quadrant Model
Self Other Aw
are
ness
Managem
ent
Self Awareness
Other Awareness
Self Management
Relationship Management
S+EI is about behavior and behaviors can be changed
Genetics
So what ??? Hard evidence that the soft skills count . . .
In Business – Greater
Productivity
Retention of top performers
Employee satisfaction & engagement
Profitability
In Life – Individuals
Are healthier
Live longer
Enjoy more satisfying relationships
Have larger, deeper and more fulfilling social networks
The Business
Case: The ROI
S+EI Coaching, Training & Assessments Embraced by Many Organizations
Social + Emotional Intelligence Programs in the Workplace
Increase employee engagement
Improve productivity
Increase sales and profits
Improve customer service
Reduce sick days and even health care costs!
S+EI and the Bottom Line at Pepsi
At Pepsico, S+EI programs generated:
10% increase in productivity
Dr. David McClelland, Journal of Psychological Science, 2008
87% decrease in executive turnover (saving $4M)
Over 1000% ROI
Sanofi-Aventis Pharmaceutical Company
EI increased in development group 18% compared with control group
EI trained sales reps outsold the control group by an average of 12% or $55,200 each per month
Increase sales and profits
X 40 reps = $2,208,000 per MONTH better
ROI = 600% ($6 for every dollar invested in EI training and coaching)
Cherniss, Emotional Intelligence in Organizations, 2003
US Air Force
Turnover among US Air Force recruiters = 50% per year
Cost $30,000 to replace each recruiter who left
Emotional Intelligence assessment instruments used in selection process for new recruiters
USAF created competency model of successful recruiters
Finding: successful recruiters strong in 5 EI skills
Screened new recruiters for 5 skills
Trained incumbents in the 5 skills
Air Force Results
Retention of recruiters went from 50% to 96% the first year
Immediate savings of $3 million annually
(GAO Report on Military Recruiting, 1998 - 2008)
Other Quick Examples
MetLife’s S+EI programs with selected
groups resulted in S+EI trained and coached sales people outselling their control group counterparts by 37% (key competencies of self-confidence, optimism, initiative, and empathy)
At L’Oreal, S+EI programs brought in
$2.5 million more in sales in the first year.
At Sheraton, S+EI programs helped increase market share by 24%.
SixSeconds White Paper, October 1, 2010
Other Quick Examples
American Express Financial Services – S+EI coaching & training program introduced to financial advisors, and sales increased 18%
SixSeconds White Paper, October 1, 2010
Supervisors in a manufacturing plant received S+EI training and coaching, and lost-time accidents were reduced from 15 per year to 3, and the plant exceeded productivity goals by $250,000
S+EI Coaching and Training
The results at Avon
More robust, vigorous organization
Competitive advantage
Greater performance & productivity
Higher profits
Cost savings due to reduced turnover, absenteeism, lowered performance and productivity
Overall more positive work climate
“Emotional Intelligence is in our DNA here at Avon because relationships are critical at every stage of our business.”
Andrea Jung, Chair & CEO of Avon Products
Research shows . . .
Top reasons for losing customers: 70% are related to lack of S+EI (The Forum Corporation on Manufacturing and Service Companies, 2004)
50% of time wasted in business is due to lack of trust, a key S+EI competency (John O. Whitney, Director, Deming Center for Quality Management, 2002)
The top reasons careers are derailed are related to a lack of S+EI (Center for Creative Leadership, 2005; Stanford University, 2001)
Top Reasons for Career Derailment
Poor interpersonal relationships
• Single most common factor – being too harshly critical
• Insensitive or demanding
• Alienating co-workers and direct-reports
Rigidity
• Inability to accept feedback about traits they need to change or improve
• Inability to listen, learn and change
Inability to work with a team
• Being disrespectful
• Being uncooperative
• Not sharing information, plans or credit.
Center for Creative Leadership, 2005
The Health & Wellness Case
People with positive emotions
• Have lower disease risks
• Fewer symptoms & less pain when they do fall ill
• Live longer!
• Dr. B. Fredrickson, Distinguished Professor, University of North Carolina, Positivity, 2009
• Cohen, S. & Doherty, R., Psychological Bulletin, 2005
People with positive emotions earn more over the course of their lifetimes.*
Diener, E., Social Indicators Research, 2002
*ABOUT 33% MORE !!
People with positive emotions have more satisfying relationships*
Harker, L. & Keltner, D., Journal of Personality and Social Psychology, 2001
*And enjoy more satisfying social networks, a key
factor in longevity
Other Personal Benefits
Improved performance and achievement
More creativity and innovative problem-solving
Better decision-making
More flexible thought processes
Improved memory
So What Does All This Mean?
Self Other Aw
are
ness
Managem
ent
Self Awareness
Other Awareness
Self Management
Relationship Management
Self-Awareness Emotional Self
Awareness
Accurate Self Assessment
Personal Power
Self Management
Behavioral Self Control
Integrity Innovation & Creativity
Initiative & Bias for Action
Achievement Drive
Realistic Optimism
Resilience
Stress Management
Personal Agility
Intentionality
Other Awareness Empathy
Situational/ Organizational
Awareness
Service Orientation
Aaron Feuerstein
Relationship Management Communication
Interpersonal Effectiveness
Powerful Influencing
Skills
Conflict Management
Inspirational Leadership
Catalyzing Change
Building Bonds
Teamwork & Collaboration
Coaching & Mentoring
Others Building Trust
We should take care not to
make the intellect our god. It has,
of course, powerful muscles, but
no personality. It cannot lead, it
can only serve
ALBERT EINSTEIN
Social + Emotional Intelligence
Competencies are measurable and learnable
Best learned through coaching (and to some extent, training)
Grounded in science
Proven ROI
S+EI is a core skill-set
Starts with awareness
Social + Emotional Intelligence Profile (SEIP)
26 competencies – most comprehensive
Available in self-scoring version & 360
Adult, Youth, and Work versions
Excellent Validity & Reliability Cronbach’s alpha = .96
For reference, MBTI is .56
Translations underway Russian, Chinese, Portuguese
Spanish, Italian, French, and
German coming Fall 2011.
In January, 2010, an independent, third
party statistical analysis firm found the Emotional Intelligence Profile (EIP) one of the most valid and
statistically reliable assessments they had
seen in 6 years of doing this work
Tools You Can Use
Name it to Tame it: Building Emotional Self-Awareness
Anxious
Apathetic
Appreciative
Apprehensive
Energetic
Enthusiastic
Envious
Exhilarated
Manipulated
Mean
Misunderstood
Motivated
Stressed
Strong
Stubborn
Stuck
Name It Worksheet
• When I woke up this morning I was feeling ______________ and _______________ and _____________.
• As I was getting ready for the day I was feeling __________________ and
_________________ and _____________________.
• While I was commuting to work/school I was feeling ________________ and ___________________ and ___________________.
• When I first got to work/school I was feeling _______________________ and ____________________________.
• By mid-morning I was feeling ________________ and _____________________.
• At lunch time I was feeling __________________ and _____________________.
My Trigger List A Worksheet for Behavioral Self Control
Trigger What I Feel in My Body
My Self Talk My Reaction (What I Do)
How I Feel After I React
Damage Done A Better Response
How I’ll Feel Then
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