why being clever isnt everything

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Being clever isn’t everything Making the business case for emotional and social intelligence

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The business case for EI.

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Page 1: Why Being Clever Isnt Everything

Being clever isn’t everythingMaking the business case for emotional and social intelligence

Page 2: Why Being Clever Isnt Everything

The rules for work are changing. We’re being judged by a new yardstick: not just by how smart we are, but by how we handle ourselves and each other.Daniel GolemanWorking with Emotional Intelligence, 1998

Page 3: Why Being Clever Isnt Everything

3© 2008 Hay Group. All Rights Reserved

Table of contents

01 Why EI?

02 What is EI?

03 Why measure EI?

04 Why do organizations use EI?

Page 4: Why Being Clever Isnt Everything

Why EI?

01

Page 5: Why Being Clever Isnt Everything

We find that most of the characteristics that differentiate the outstanding performersare these things that we call social and emotionalcompetenciesRichard Boyatzis, 2008

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6© 2008 Hay Group. All Rights Reserved

It’s tough these days…

We’re all trying to deliver the impossible:

Change initiatives “Raise acceptance and do it quicker”

Recruitment “Get it right first time and increase retention”

Development “Embed behavior change and raise ROI”

Innovation “More of it and faster!”

Strategy “Good decisions, quicker, with more impact”

Operations “Do more, with less, more flexibly”

Sales & marketing “Better returns and a higher market share”

Mergers & Acquisitions “Faster, problem-free integration”

Page 7: Why Being Clever Isnt Everything

7© 2008 Hay Group. All Rights Reserved

…does being clever help?

Of course it does. In professional and technical fields people are typically in the top 20% of intelligence.That’s the threshold.

But it’s not enough – is it!So what differentiates the very best – leaders and professionals – within the top 20%?

Employers consistently list: Communication being able to listen, converse and present Adaptability creative responses to setbacks and obstacles Personal management motivation to work, pride, a desire to develop Interpersonal effectiveness teamwork, co-operation, the skills to negotiate Organizational effectiveness leadership potential, the desire to make a contribution

Daniel Goleman, Working with Emotional Intelligence, 1998

Page 8: Why Being Clever Isnt Everything

The CEO says, “Okay, prove to me EI works”What do I do?

I say: “Do you have an employee that you wish you could clone? Somebody who’s great.”

They usually say yes immediately.

So I ask them: “Tell me about this person. What makes them different? What kind of impact do they have on the people around them?”

Their description proves the case.I never have to justify emotional or social intelligence competencies. All I have to do is label them.Richard Boyatzis, 2008

Page 9: Why Being Clever Isnt Everything

What is EI?

02

Page 10: Why Being Clever Isnt Everything

The capacity for recognizing our own feelingsand those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationshipsDaniel Goleman

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11© 2008 Hay Group. All Rights Reserved

A simple model that captures it all…

OTHERSSELF

Selfawareness

Socialawareness

Selfmanagement

Relationshipmanagement

AWAR

ENES

S

performance

ACTI

ON

S

…the characteristics that help us deliver – individually and through others –

working co-operatively

addressing and resolving conflict

influencing individuals and groups

motivating a colleague

inspiring a team

developing or mentoring others

Page 12: Why Being Clever Isnt Everything

12© 2008 Hay Group. All Rights Reserved

The heart of EI

OTHERSSELF

Socialawareness

Selfmanagement

AWAR

ENES

SAC

TIO

NS

Awareness of your emotions

Insight into their impact on your performance

Honesty in your positive and negative biases

Selfawareness

Relationshipmanagement

Page 13: Why Being Clever Isnt Everything

13© 2008 Hay Group. All Rights Reserved

The fire and the brakes

OTHERSSELF

Selfawareness

Socialawareness

Selfmanagement

Relationshipmanagement

AWAR

ENES

SAC

TIO

NS

Self-control – especially under pressure

The energy to do your best

Openness to change and new ideas

Persistence – despite obstacles and setbacks

Page 14: Why Being Clever Isnt Everything

14© 2008 Hay Group. All Rights Reserved

Sensing others’ feelings and perspectives

Reading the organization –the influencers, the networks and the dynamics

Tuning in

OTHERSSELF

Selfawareness

Socialawareness

Selfmanagement

Relationshipmanagement

AWAR

ENES

SAC

TIO

NS

Page 15: Why Being Clever Isnt Everything

15© 2008 Hay Group. All Rights Reserved

Making a difference

OTHERSSELF

Selfawareness

Socialawareness

Selfmanagement

Relationshipmanagement

AWAR

ENES

SAC

TIO

NS

Turning conflict into agreement

Collaborating with others

Having a positive impact

Bringing out the best in others

Bringing people together to get the job done

Page 16: Why Being Clever Isnt Everything

It’s not a fad, it’s not a trend.

EI is the result of a long historyof analyzing social intelligence (otherwise known as ‘what makes people tick’).

Page 17: Why Being Clever Isnt Everything

17© 2008 Hay Group. All Rights Reserved

The latest in a long line of great thinking

THE ‘THINKING’ BRAINAnalyzes slowly for meaning: acts as a brake is a check on motivational impulses

Prefrontal lobes

THE ‘EMOTIONAL’ BRAINResponds quickly based on: what motivates us what we care about

Amygdala

ACTUAL BEHAVIOR

Page 18: Why Being Clever Isnt Everything

Why measure EI?

03

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19© 2008 Hay Group. All Rights Reserved

The EI link to business results

Emotional Intelligence

What you do

Organizational Climate

Discretionary Effort

Business Results

What you bring

Page 20: Why Being Clever Isnt Everything

20© 2008 Hay Group. All Rights Reserved

The road to hell is paved with good intentions…

No one sets out to be an ineffective leader. No one tries to be bad at their job.

It’s more subtle than that: we get to thinking we’re a bit better (or worse!) than we really are… we hold on to our beliefs and assumptions, despite the evidence before us… we listen to what we want, or expect, to hear…

It’s a slippery slope, isn’t it?

It’s the difference between intention and impact.

That’s why 3600 feedback is so valuable.Individuals can see their intention – their own self-view – mirrored back to them.But they also see their impact – through the eyes of their boss, their peers, their team.

They see the bit that really matters.

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21© 2008 Hay Group. All Rights Reserved

Clear the fog

Raising awareness is the first step to raising capability…You can only change what you already know about yourself. Know more – you can change more.Ask for feedback – you know more.

UNKNOWN BY SELFKNOWN BY SELF

open / freearea

blindarea

KN

OW

N B

Y O

THER

SU

NK

NO

WN

BY

OTH

ERS

hiddenarea

unknownarea

Joseph Luft and Harry Ingham worked it out in the 1950s.

You may know it as the Johari Window.

Learning reduces your blind areaSharing what you’ve learned reduces your hidden areaDoing both reduces your unknown area

EI feedback is the starting point

1 2

3 4

Page 22: Why Being Clever Isnt Everything

22© 2008 Hay Group. All Rights Reserved

Focus on the things you can change

…and, unlike IQ, you can develop EIWhen it comes to being clever, we’re pretty much stuck with what we’ve got.But we also know people can change.(If we don’t believe that we might as well all pack up and go home now!)

What makes behavior change possible? the tension between who we are and who we want to be the feeling of reward – and relief – when we can build on our strengths the sense of ownership when we can set our own learning agenda the challenge and support we get from people we trust

3600 EI feedback provides the focus for behavior change data on the behaviors that matter applicable to any leadership or professional role

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23© 2008 Hay Group. All Rights Reserved

Speak the same language

EI – is it for everyone?Is there anyone in your organization who you wish were less emotionally intelligent?Hard to imagine, isn’t it?

It’s obvious that EI makes for better leaders and more effective professionals.But which of us hasn’t felt better after a chat with the extraordinarily empathic cleaner?Or learned something important from the organizationally aware secretary.Or been influenced by the words of a brave and insightful junior colleague.

EI has no limits It has the flexibility to fit any role, of any size, at any level.It helps everyone perform better.

If you want to embed one set of behaviors across your organization, this is the one to go for.

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We’ve found that the people who really improve their EI have some surprising things in common:

they don’t bite off more than they can chew

they are really clear about the payoff – for them and others – if they change

they focus on their strengths and make the most of them before looking at their weaknesses

they are feedback junkies – tenacious about asking those around them how they’re doing

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Why do organizations use EI?

04

Page 26: Why Being Clever Isnt Everything

Great listener Blank wallEncourager DoubterCommunicator SecretiveCourageous IntimidatingSense of humor Bad temperShows empathy Self-centeredDecisive IndecisiveTakes responsibility BlamesHumble ArrogantShares authority Mistrusts

Who would you work best for?Taken from Daniel Goleman, Social Intelligence, 2006

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27© 2008 Hay Group. All Rights Reserved

EI accounts for leadership excellence…

EI competencies distinguish the stars from the average…

…are better predictors of success than previous experience or high IQ…

…and they allow leaders to create high performance climates

In a study of 300 top-level executives from 15 global companies 85-90% of leadership success was linked to social and emotional intelligenceSpencer, L.M., Jr,. 1997

In a multinational study of 515 senior executives EI scores were high in 74% of successful hires, but only high in 24% of failed hires.Egon Zehnder International

Schools whose head teachers have high EI scores demonstrate the best national inspection resultsOngoing Hay Group research

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28© 2008 Hay Group. All Rights Reserved

…bottom-line performance…

EI competencies help professionals do more work…

…make more sales…

…and deliver more profit

In most complex jobs a top performer is 127% more productive than an average performer Hunter, Schmidt & Judiesch, 1990Competency research in over 200 organizations worldwide attributes ⅓ of this difference to technical and cognitive ability, and ⅔ to emotional competence Goleman, 1998

At L’Oreal, sales professional with high EI scores sold $91,370 more than their lower-scoring peersSpencer & Spencer, 1993

High scoring consulting partners delivered $1.2 million more profit from their accounts than their peersBoyatzis, 1999

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29© 2008 Hay Group. All Rights Reserved

…and better outcomes across all sectors

Examples from nursing…

…and manufacturing

After supervisors in a manufacturing plant received training in emotional competencies –how to listen better and help employees resolve problems on their own – lost-time accidents were reduced by 50%, formal grievances were reduced from 15 to 3 per year, and the plant exceeded productivity goals by $250,000 Pesuric & Byham, 1996

Nurses and nurse managers with higher EI scores are responsible for:

lower staff turnover

higher frequency of professional practice behaviors higher staff, patient and doctor satisfaction

Studies into the doctor-patient relationship show that doctors’ demonstration of empathy reduces hospital litigation issuesHay Group nursing leadership studies, 2003 & 2006

Page 30: Why Being Clever Isnt Everything

30© 2008 Hay Group. All Rights Reserved

Learn more

For information on products and services to help develop your EI visit www.haygroup.com/leadershipandtalentondemand or call 1.800.729.8074!