Dr. Relly Nadler shares 10 reasons why emotional intelligence is core to leadership and organizational development.

In Relly’s book, Leading with Emotional Intelligence, there are over 100 strategies that leaders can do to increase and sustain their performance. A few micro-initiatives can have a macro impact. To get started, click here for free EI tools that he has developed over years of working with top executives.

For those who prefer reading to listening and watching, here is a summary of the 10 reasons reviewed in detail in the video:

  1. There is a leadership gap, and your leadership is desperately needed now. Gallup (2015) has found that only 10% of workers have the talent combination to be great managers. 40% of organizations say they do not have enough skilled or trained leaders to fill spots for the future.
  2. Your mood and temperament influence everyone on your team more so than you imagine. You are your team’s Emotional Thermostat. Gallup (2015) has found that managers account for up 70% of the variance in employee engagement surveys.
  3. With more emotional intelligence (ei), you have a competitive advantage. The further you go up in the organization, the more you use Emotional Intelligence to be successful rather than your expertise or your Intelligence Quotient (IQ). Research studies show that emotional intelligence is anywhere from 50% to 85% greater a critical success factor depending on the study.
  4. Emotional Intelligence gets us off automatic. Most of us operate on autopilot much of the time rather than being aware of what is around us. We take shortcuts rather than thinking hard or long about things. Working on your ei entails getting off automatic to be more intentional and exceptional.
  5. Developing emotional intelligence requires you take a hard look at your blind spots. These are the things that derail you from top performance. We all have them but if you don’t know what they are you will continue to undermine your success. Marshall Goldsmith, one of the top executive coaches with Fortune 100 executives in his research with executives says, 70% of people think they are in the top 10%. Using EI coaching, assessments, 360-degree feedback and interviews you can establish what your blind spots are.
  6. You and your organization will be more productive. The basis of the EI competencies goes back to Dr. David McClelland of Harvard, and later the Hay Group and Multi-Health Systems studying what top 10% performers do differently than average performers. The Human Capital Institute and Multi-Health Systems Organizations looked at the Return on Investment (ROI) data and surveyed 784 respondents from over 500 organizations worldwide in 2013. They found:
    • Organizations that value and widely use Emotional Intelligence are 3.2x more effective at leadership development.
    • There is a 31% gap in leadership development effectiveness between organizations where EI is valued, versus those in which it is not.
    • They found that organizations that measure EI, report 16% more positive revenue growth.
  7. You will make better decisions. In today’s world, we are all “crazy busy” which some people call a VUCA environment: (Volatile, Uncertain, Complex and Ambiguous). To be outstanding, you need to be able to make effective decisions in the moment with as much information and knowledge as you can gain. It is a matter of getting accurate input to improve your output. The EI input is knowing yourself and assessing others quickly so your decisions can be better. This kind of strategic intelligence is valued by our military we have worked with but is also critical for any executive that is making thousands of decisions a day. The better you can assess and adjust in this VUCA environment, the more successful you will be. Our formula for top performance that we share with leaders is: Empathy X Insight X Clarity = Top 10 % Performance. Whether it is training or coaching the focus is to gain more clarity about your strengths and weakness and those of your direct reports or teams.
  8. People will trust and connect with you better. Being authentic and taking time for your people allows you to be a more credible leader. In less than a second, we are able to assess whether we trust someone. We are wired to connect with others, according to many neuroscientists and authors, but we often sabotage ourselves and others and don’t make the time to connect with people. See my blog about the managers’ default is to find fault. We know from the engagement literature from Gallup and Bob Nelson that people:
    • want to feel they have a seat at the special table,
    • their opinions count and
    • they are acknowledged for the good work they do, to name a few of the engagement factors.
  9. You will develop more leaders in your organization. “Once you connect you will better able to direct.” Knowing others strengths and capabilities and being clear about your vision and what you want from people while utilizing their strengths can help make you a “best boss.” People often say their best boss empowered them, stretched them, trusted them, and they would do anything for this person. Is that you? If not, work on your Emotional Intelligence.
  10. You will hire better. Being aware of your EI competencies, those of your direct reports, and which ones are most important for your organization, will help you hire talent that already has these competencies. Gallup has found that companies that hire managers based on talent realize a:
    • 48% increase in profitability
    • 22% increase in productivity,
    • 30% increase in employee engagement scores,
    • 17% increase in customer engagement scores and
    • 19% decrease in turnover. (Gallup, 2015)

Goldsmith, M. with Reiter, M. (2015) Triggers: Creating Behavior That Lasts–Becoming the Person You Want to Be, NY; Crown Publishing Group

Leadership and Emotional Intelligence: The Keys to Driving ROI and Organizational Performance, (2013) Human Capital Institute

Gallup. Inc (2015) State of the American Manager Report. Gallup, Inc Publishing
Gallup Report: “What Separates Great Managers From the Rest,” May 12, 2015 Gallup
Nelson, B (2012) 1501 Ways to Reward Employees, NY: Workman Publishing

Nadler, R. (2011) Leading with Emotional Intelligence: Strategies for Building Confident and Collaborative Star Performers, NY: McGraw-Hill

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