The power of emotional intelligence in business: How EQ can drive success

ILLUSTRATION BY RUTH MACAPAGAL

Success is often attributed to factors like strategy, innovation and financial acumen in business. In my personal interaction with many of the world’s most famous business leaders, including Fortune 500 CEOs and billionaire entrepreneurs, I have seen another critical factor that’s often overlooked but has the potential to drive success to a whole new level: Emotional intelligence.

To understand the power of emotional quotient (EQ), let’s first look at what it is and why it matters. EQ is a measure of an individual’s ability to understand and manage one’s own emotions and the emotions of others, and it’s becoming increasingly important in the workplace. In this article, we will explore the power of EQ in business and how you can cultivate it to drive success.

The power of EQ

According to a study by TalentSmart, EQ is responsible for 58 percent of job performance in all types of jobs. People with high EQ are more likely to be successful in their careers, have better relationships, and lead more fulfilling lives. It is their hidden superpower. In the workplace, EQ is especially critical because it impacts how people interact with each other, manage conflicts and make decisions.

The most successful business leaders can balance both their technical and analytical skills with their EQ and interpersonal communication abilities. By developing a strong combination of IQ and EQ, business leaders can build strong relationships with their teams, customers and stakeholders while also driving strategic growth and success for their organizations.

Build stronger relationships, resolve conflicts faster and make better decisions

One of the main benefits of having high EQ in business is the ability to form strong relationships with colleagues, customers and partners. People with high EQ can better understand and empathize with others, which allows them to build trust and rapport more quickly. This, in turn, can lead to better collaboration, increased productivity and higher morale.

Another benefit of EQ in business is the ability to manage conflicts effectively. When people with high EQ encounter conflicts, they can better manage their emotions and communicate effectively to resolve the issue. This not only helps to reduce tensions but also helps to maintain positive relationships and avoid damaging conflicts.

EQ is also critical when it comes to making decisions in business. People with high EQ are better able to consider multiple perspectives, weigh the pros and cons of different options, and make fair and balanced decisions. This can lead to better outcomes, improved morale and increased colleague trust.

CEOs with high IQ and EQ

Jez Frampton, longtime global CEO of Interbrand, the world’s leading brand consultancy, has said, “Tom’s ability to shift the way you think makes him an excellent source of inspiration to anyone seeking to stay one step ahead of the competition.” Where does that come from?

One of the reasons is that I grew up with a topnotch business education but also a world-class music education, and I trained as a classical pianist and singer. Being at home in the arts and business has allowed me to master my IQ and EQ and to see solutions to many of our clients’ most complex challenges.

There are numerous examples of famous business leaders who have demonstrated high IQ and EQ. One of the most notable examples is Jeff Bezos, founder and CEO of Amazon. Bezos has a degree in electrical engineering and computer science from Princeton University and is known for his analytical and strategic thinking skills. However, he has also demonstrated vital emotional intelligence and empathy, as evidenced by his commitment to creating a positive company culture at Amazon and his focus on customer satisfaction.

Indra Nooyi, former CEO of PepsiCo, is another business leader who has been praised for her high levels of both IQ and EQ. She is known for her strategic thinking and business acumen, but she is also highly skilled in interpersonal communication and relationship-building. Nooyi holds a degree in electrical engineering from the Indian Institute of Technology and a master’s degree in management from Yale University.

Satya Nadella, CEO of Microsoft, is another business leader who has demonstrated both a high IQ and high EQ. Nadella has a degree in electrical engineering from Manipal Institute of Technology and a master’s degree in computer science from the University of Wisconsin-Milwaukee. He is known for his technical expertise and strategic thinking, but he is also highly skilled in collaboration, empathy and emotional intelligence.

Practical steps to develop a high EQ and drive success

Developing EQ is a lifelong process. Here are some practical steps and exercises that business leaders can take to improve their EQ:

1. Practice self-awareness: One of the first steps to improving EQ is to become more aware of your emotions. Take time each day to reflect on your feelings, what triggered those emotions, and how you responded to them. Keeping a journal can help you track your emotions and identify patterns.

2. Learn to listen actively: Active listening is an essential component of emotional intelligence. Practice listening to others without interrupting, judging or offering unsolicited advice. Repeat back what you heard to confirm understanding, and ask questions to clarify.

3. Seek feedback: Soliciting feedback from colleagues, mentors and coaches can help you identify blind spots and areas for improvement. Be open to constructive criticism and avoid becoming defensive. Instead, use feedback as a tool for growth.

4. Manage stress: Business leaders face a lot of pressure, and it can be challenging to maintain composure under stress. Developing healthy coping mechanisms, such as exercise, meditation, or deep breathing, can help you manage stress and regulate emotions.

From empathy to a growth mindset

5. Develop empathy: Empathy is the ability to understand and share the feelings of others. Listen to their concerns and validate their emotions. Practice putting yourself in others’ shoes and imagining their perspective.

6. Practice assertiveness: This includes setting boundaries, saying “no” when appropriate (a growth area a lot of Filipinos need to work on) and telling your views constructively.

7. Build positive relationships: Positive relationships are crucial to emotional intelligence. Focus on building strong connections with colleagues, clients and stakeholders. Express gratitude, show interest in others and offer support when needed.

8. Develop a growth mindset: Embrace a growth mindset, which is the belief that your abilities and intelligence can be developed through effort and hard work. Focus on continuous learning and improvement, and be open to new experiences and challenges.

By following these practical steps, business leaders can develop their emotional intelligence and become more effective leaders. INQ

Tom Oliver, a “global management guru” (Bloomberg), is the chair of The Tom Oliver Group, the trusted advisor and counselor to many of the world’s most influential family businesses, medium-sized enterprises, market leaders and global conglomerates. For more information and inquiries: www.TomOliverGroup.com or email [email protected].