September, 2011 Volume 1, Issue 1

T h o u g h t N a t I o n

ReDfining the Course in the Global Market Place

Emotional Intelligence,and its impact on Productivity

For some time now, we have known that IQ alone is not a reliable indicator when it comes to predicting an individual’s level of success, effectiveness, or degree of productivity. Yet, we have been slow to change, perhaps because we lacked any real alternative. Which is probably why, much of the past decade, here and abroad, has

been focused on research related to Emotional Intelligence – EQ, for short, and the extent to which emotions play in our daily lives. Today, the missing components that round out IQ, and determine performance success, with a great degree of accuracy, have been identified, and are embodied within the domain of EQ.

A Course CorrectionIn fact, EQ is said to account for anywhere from 24% - 69% of performance success, and thus, has become the leading indicator. [1] Which, when you think about it, makes perfect sense, because what difference does it make if, say, a Six Sigma Black Belt is highly astute if he or she alienates everyone around them? What value is there in acquiring world-class, managerial IT capability if the manager undermines his or her direct reports and causes significant turnover? Now, I’m not saying we should throw IQ out the window, quite the contrary. My point is to bring, to the forefront, the fact that the landscape around us has changed. These findings are transformational, and no longer can we sit idly by, on the side lines, and do what we’ve always done. Action must follow, and behavior must change. It’s evident that our roles are in a constant state of flux, and the value of their function constantly in question.

Value Based InvestingEmotionally intelligent people are self–confident, which makes them good participative leaders and engaged team players. Emotionally competent people, also, maintain a positive, yet realistic, view of the world, and life, in general, which has shown to be beneficial in overcoming road blocks.

In fact, emotionally competent people apply the skills they cultivate when coping with every day stresses, and negative emotions, to get through tough challenges, and build mutually beneficial relationships.

Thus, emotionally intelligent people are adept at managing stress, which makes for effective change agents.

By now, you’re probably thinking, “but how does EQ affect my bottom line?” Daniel Goleman, who is credited with taking EQ from the academic arena, to the world of business, found that emotional competence accounts for two-thirds to three-fifths of the difference between top performers and average employees. L’Oreal understood the value of emotional intelligence when they used it as part of their selection criterion for hiring sales representatives. What they found was, emotionally intelligent employees outsold their colleagues by $91,370 a year, on average. They also experienced a 63% reduction in turnover. [2]

As it relates to retail store managers, in general, those that were best able to handle stress had higher net profits, and more sales per square foot, per employee and per inventory dollar. [3]

The United States Air Force saved three million dollars, by utilizing EQ in their recruiter selection process. They found the more emotionally competent recruiters were three times as effective, as candidates in general, and stayed on the job longer. [4] A reported annual savings of $3,000,000 per year, on an initial investment of $10,000 is more than note worthy.

This Issue:

Feature Story :

Page 1- 2

Emotional Intelligence & Productivity

“EQ is said to account for up to

69% of performance

success.”

September, 2011 Volume 1, Issue 1

T h o u g h t N a t I o n

ReDfining the Course in the Global Market Place

Emotional Intelligence,and its impact on Productivity Con’t

EQ BasicsSo, what does EQ entail, and can it be learned? While EQ includes both inherent and learned components, the learned components, noted below, far outweigh those of the inherent. Self -Awareness: The ability to understand one’s driving needs, wishes and how they affect one’s behavior. The ability to reflect and learn from past mistakes.

Self -Regulation: The ability to regulate, and control one’s emotions, handle stress, and accept responsibility for one’s decisions. Self-Motivation: The drive and determination to meet or exceed a standard of excellence.

Social-Awareness: The ability to sense other people’s feelings and perspective, and take an active role in addressing their concerns.

Social Skills: The ability to persuade. [5]

At the end of the day, the case for EQ speaks for itself. The challenge then becomes one’s willingness to embrace reality, exercise responsibility, and to value who they are.

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References: [1] Harvard Management Update, Bielaszka-DuVernay, C., Hiring for Emotional Intelligence, (November 2008) [2] Goleman, D (1998) Working with emotional intelligence. New York: Bantam[3] Lusch, R.F., & Serpkeuci, R., (1990). Personal differences, job tension, job outcomes, and store performance: A study of retail managers. Journal of Marketing.[4] EAO report. Military Recruiting: The Department of Defense Could Improve Its Recruiter Selection and Incentive Systems, submitted to Congress January 30, 1998.[5] The Consortium for Research on Emotional Intelligence in Organizations

Emotional Intelligence: The link to personal success.

“The good news - EQ can be learned”