Harnessing Emotional Intelligence:

The Key to Transformative Leadership and Business Success

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Author's Corner

In this white paper, Jessie Zollinger, Client Operations Director - IT Services, discusses how harnessing emotional intelligence can transform leadership and drive business success.

Please click on the video to the right to learn more about the author, hear her insights on this white paper, and discover what motivated her to write about this topic.

To discuss this white paper in detail, please contact Jessie using the information provided at the bottom of the page.

Introduction

Everyone in the conference room tensed uncomfortably in their seats. At Poor EQ Solutions, leadership often engaged in heated verbal battles, and today was no different. Unfortunately, the conflict stemmed from a simple misunderstanding-clear to everyone except the two executives. As was typical with these senior leaders, there seemed to be intense competition to be right and deflect blame. They were oblivious to the effect they were having on the team, as many people disengaged and shut down. A well-meaning manager’s attempt to pivot the conversation resulted in a harsh rebuke. Employees knew it wasn’t safe to express an opinion, disagree with the leader, or, worse yet, make a mistake. They feared the intensity of judgment, shame, and blame that would occur if anything went wrong in the company workflow.

The attitudes and behaviors modeled by the leaders trickled down to even the lowest-level employees, causing most people to stop talking altogether. Naturally, someone else was always to blame for the miserable state of things. The result was a dysfunctional company ruled by fear, with low engagement, a void of collaboration, and continually decreasing goal achievement.

While this fictional example is exaggerated, many can relate to workplace dysfunction that better strategies could resolve. But why do highly intelligent and capable people sometimes fall short at work and in leadership? Much research indicates that a lack of emotional intelligence (EQ) is often the culprit.

History of Emotional Intelligence/Quotient (EQ/EI)

Throughout history, people have developed many systems to measure human traits. In antiquity, the Greeks measured physical strength in the Olympic Games (1). Alfred Binet’s 1904 IQ test aimed to quantify a person’s reasoning ability (2). Emotions, integral to the human experience, naturally became another domain of exploration.

The term "emotional strength" first appeared in the 1950s, followed by "emotional quotient" (EQ) and the use of "emotional intelligence" (EI) in research and publications (3). Daniel Goleman’s 1995 book, Emotional Intelligence – Why It Can Matter More Than IQ, brought EI to the forefront. Goleman continues to be a leader in EQ research, connecting its value to business and providing a foundation for many other researchers and theorists (4).

EQ in Business Leadership

In a 2021 study, Goleman found that only 15% of leadership success is attributed to IQ-related technical skills, while a whopping 85% relates to a leader’s EQ (4). Emotional intelligence is so critical for effective business leadership that the World Economic Forum listed it among the top ten most important workplace skills (5). Forbes identifies EQ as the secret sauce that sets star employees apart from average employees, with a 90% EQ difference (12).

Does being a leader mean that you must have a position and title traditionally considered a leadership role? A 2023 Forbes article states that leadership is defined by a focused set of skills and qualities rather than a specific title. One can be in authority and still lack the necessary social tools of leadership, while even those in humble positions can impact the workplace by practicing strong leadership habits, setting good examples, showing up, and consistently delivering for others (7).

Core Competencies of Emotional Intelligence

Core Competencies of Emotional Intelligence

Viewing leadership as less of a title and more of a way of being necessitates understanding the definition of emotional intelligence. To understand what emotional intelligence is, it helps to understand what it is not. In the example, Poor EQ Solutions, low EQ was evident in conflicts, misunderstandings, unawareness of others' emotions, inability to acknowledge concerns, lack of active listening, blame-shifting, and emotional outbursts.

According to Joshua Freedman, CEO and researcher at the leading global research network Six Seconds, 2024 marks a global EQ low, with a four-year emotional recession post-COVID (11). This period of emotional depletion correlates with low motivation, empathy, and capacity to cope with daily stressors. Freedman points out that there is hope! Emotional intelligence skills are not just measurable but learnable. Understanding EQ and fostering its growth in companies is vital.

Harvard identifies four core EQ competencies: self-awareness, self-management, social awareness, and relationship management (8).

  1. Self-Awareness: Recognizing personal strengths and weaknesses and understanding how emotions affect personal and team performance. EQ researcher Tasha Eurich found that while 95% of people think they are self-aware, only 10-15% are. This can be improved with 360-degree feedback, comparing self-analysis against the opinions of a boss, peers, and direct reports (8).
  2. Self-Management: Managing emotions in stressful or unexpected situations, often requiring intentionality to avoid automatic reactions that leave little time for critical thinking or consideration.
  3. Social Awareness: Recognizing others' emotions and social dynamics. Empathy, the ability to understand others' feelings, is central to social awareness. Just as EQ made the list of top ten skills, empathy ranked first.
  4. Relationship Management: Influencing, coaching, mentoring, and resolving conflicts effectively. Brené Brown, a leading researcher in shame and its role in human interaction, describes the temptation to face conflict in a way that either takes too much blame or too little. She encourages people to "not puff up, but don’t shrink." Instead, she advises showing up with vulnerability and valuing truth over being right (10).

Development Dimensions International (DDI) is a science-based leadership development program that provides personalized leadership programs emphasizing EQ. In a recent session, a leader whose results revealed he was too harsh with his team acknowledged his lack of awareness, marking a crucial first step toward effective leadership. He shared, “I finally get it—I haven’t been aware of my own or my team’s feelings; no wonder I’m finding leadership difficult (6).” Imagine the impact of such training on Poor EQ Solutions or any workplace.

Business Outcomes of EQ Strategies

These four foundational pieces of the EQ equation become even more powerful when their workplace impacts are considered. Forbes unpacks why EQ is so important in the workplace. These benefits include improved communication, stronger business relationships, better performance, and personal growth (12). Harvard Business School adds that focusing on EQ enhances motivation, empowers voices, helps leaders recognize opportunities, and boosts morale.

Other specific outcomes include better hiring, stronger business partnerships, and easier global business navigation (9).

The Cultural Element

It is important to note that having higher EQ aids in cultural understanding but does not replace cultural intelligence (CQ). Forbes notes that relying solely on the drive to achieve higher EQ will fail in global teams and cross-cultural negotiations (14).

As an example, research shows that 40% of expatriate assignments fail due to cross-cultural challenges (14). These people are often the top talent in their company and are either leaders or upcoming leaders. So why is this? Remember that one of the core competencies is social awareness. Behaviors effective in one culture may have different meanings in another. Global business requires shedding assumptions, studying cultural differences, and identifying strengths and weaknesses within diverse teams.

Vee Technologies on Emotional Intelligence (EQ) and
Cultural Intelligence (CQ)

Vee Technologies Inc., like all companies, faces EQ and CQ challenges. Due to its multicultural nature, Vee Technologies emphasizes quality training and coaching on EQ and CQ for employees. Experts from both cultures contribute to learning initiatives, fostering growth on both sides.

Leadership at Vee Technologies starts from the top. Founder and CEO Chocko Valliappa and leaders in India collaborate with Vee Technologies President Patrick O’Malley and US senior leaders. This harmonious synergy of cultures, technical strengths, and collaborative solutions forms the ethos driving the company's delivery of personal service and extraordinary outcomes.

Conclusion

Emotional intelligence (EQ) is a crucial determinant of success in business leadership, significantly outweighing technical skills and IQ. Its core competencies—self-awareness, self-management, social awareness, and relationship management—are essential for fostering a positive and productive workplace environment.

Understanding and improving EQ can transform company culture, enhancing communication, relationships, performance, and growth. As demonstrated by Vee Technologies, integrating EQ and cultural intelligence (CQ) in leadership practices can harmonize diverse teams and drive exceptional outcomes. By prioritizing EQ, businesses can navigate global challenges, improve employee engagement, and achieve sustained success.

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Source Citation:

1. Olympics History
https://olympics.com/en/news/the-history-of-the-olympic-games

2. IQ History
https://www.onecentralhealth.com.au/therapy/psychology/what-is-iq/#:~:text=IQ%20stands%20for%20intelligence%20quotient,of%20a%20person's%20reasoning%20ability.

3. EQ
https://en.wikipedia.org/wiki/Emotional_intelligence

4. Goleman
https://www.danielgoleman.info/

5. World Economic Forum
https://www.weforum.org/agenda/2016/01/the-10-skills-you-need-to-thrive-in-the-fourth-industrial-revolution/

6. DDI
https://www.ddiworld.com/blog/emotional-intelligence-competencies-for-leaders#:~:text=Further%2C%20he%20found%20that%2015,for%20leadership%20success%20and%20effectiveness.

7. Forbes: Six Ways to Lead Even When You Aren’t in a Leadership Position
https://www.forbes.com/sites/theyec/2023/05/03/six-ways-to-lead-even-when-you-arent-in-a-leadership-position/

8. Harvard School of Business Online: Why Emotional Intelligence is Important for Leadership
https://online.hbs.edu/blog/post/emotional-intelligence-in-leadership

9. HSB: Working with People Who Aren’t Self-Aware
https://hbr.org/2018/10/working-with-people-who-arent-self-aware

10. Dare to Lead Brene Brown
https://brenebrown.com/hubs/dare-to-lead/

11. Six Seconds: State of the Heart
https://www.6seconds.org/emotional-intelligence/research/

12. Forbes: Importance of Emotional Intelligence
https://www.forbes.com/sites/forbeshumanresourcescouncil/2023/07/18/the-importance-of-emotional-intelligence-at-work/

13. HSB: Importance of Emotional Intelligence in the Workplace
https://appliedpsychologydegree.usc.edu/blog/emotional-intelligence-in-the-workplace

14. Forbes: Why Emotional Intelligence Needs Cultural Intelligence When Working Across Borders
https://www.forbes.com/sites/darrenmenabney/2020/12/30/why-emotional-intelligence-needs-cultural-intelligence-when-working-across-borders/

Byron James

Meet the Author

Jessie Zollinger - Client Operations DIrector - IT Services

Jessie Zollinger leads with courage, creativity, and a commitment to authentic connections at Vee Technologies. With over 10 years of experience managing people and processes, she is a skilled team facilitator, software engineer, and operations professional. Jessie believes that empathy, trust, and meaningful conversations are at the heart of great work. This approach translates into measurable value for Vee Technologies' clients, resulting in more effective solutions, streamlined processes, and stronger partnerships that drive long-term success.

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