The Business Case for Emotional Intelligence

Jim Davidson is a Managing Partner of Performance Culture Australia. He specialises as a Team Coach and Corporate Trainer. Founded in 2007, the business has expanded into new countries, new products and new areas of services. The core mission of Performance Culture is to transform workplaces into a community with shared values and a commitment to ongoing learning. They emphasis the importance of having emotionally intelligent leaders to guide organisations forward. 

Read on for Jim's look at how emotional intelligence leads to business success.

I guess the question really is, how do you define business success? In most people's minds business success is driven around the profitability and the value of a business.

I would put to you that emotional intelligence is actually the greatest indicator of success as emotional intelligence develops strong relationships which in turn leads to success in business.  

Emotional intelligence is seen as the ability to be aware of your emotions and the emotions of those around you, and to use that awareness to accurately manage yourself and your relationships. Emotional intelligence is simply the balance between your rational brain and your emotional brain.

So how does it work?

Emotional intelligence allows us to increase our behavioural choice. Emotional intelligence is simply four key skills, which are often referred to as ‘people skills’.

The four key skills are:

1. Self-awareness
2. Social awareness
3. Self-management
4. Relationship management

The fundamental basis of emotional intelligence is self-awareness. If we have strong self-awareness we can recognise our emotions ‘in the moment’. In understanding the source of the emotion, we can choose the response we desire and consider its impact, rather than allowing the first instinctual response.

Having strong emotional intelligence equates to having strong social awareness. Just as you are able to identify your own emotions ‘in the moment’, emotional intelligence means you possess the ability to perceive the complexities of other people’s emotions.

Self-management is actually behavioural self-control. There's only so many times that we can allow disruptive emotions to get in the way and act on impulse. This lack of self-control can significantly affect the way we build relationships.

Regarding our relationship management, communication is the key thing. Are we able to listen attentively and foster an open conversation with people in a positive and constructive manner? Do we have interpersonal effectiveness? Are we possessing diplomacy tact?

What is the impact of emotional intelligence on your business?

Knowing how and when to use those skills will build relationships with others, which then leads to influence, ability to handle conflict, ability to inspire others in leadership and to develop leadership styles. This ultimately develops teamwork, collaboration, and peer mentorship, which builds trust.

An emotionally intelligent business sees an increased level of retention of employees and clients, meaning there is a higher level of engagement. Engagement is simply the emotional connection between an employee and their organisation's goals and objectives. This grows a better work culture with employees having greater motivation to fulfill the vision. When there is increased employee engagement, there is better well being in the workplace, less workplace politics and a greater ability to handle conflicts when they do arise.  

Research conducted by Gallup suggests that a high performing organisation, which is driven by emotional intelligence, will see statistics like a 40% reduction in absenteeism, and a 60% reduction in staff turnover. It would be expected to see an increase in customer metrics, increasing productivity and increasing profitability.

There is absolutely an argument that emotional intelligence leads to success in business. Investing in growing emotional intelligence will see results in the multi layers of a business.

- Jim Davidson, Performance Culture.