Reference no: EM132307762

Evaluating Emotional Intelligence Most large companies today have employed trained psychologists to develop what are known as “competency models” to aid them in identifying, training, and promoting likely stars in the leadership firmament. The psychologists have also developed such models for lower-level positions. And in recent years, I have analyzed competency models from 188 companies, most of which were large and global and included the likes of Lucent Technologies, British Airways, and Credit Suisse. In carrying out this work, my objective was to determine which personal capabilities drove outstanding performance within these organizations, and to what degree they did so. I grouped capabilities into three categories: purely technical skills like accounting and business planning; cognitive abilities like analytical reasoning; and competencies demonstrating emotional intelligence, such as the ability to work with others and effectiveness in leading change. To create some of the competency models, psychologists asked senior managers at the companies to identify the capabilities that typified the organization’s most outstanding leaders. To create other models, the psychologists used objective criteria, such as a division’s profitability, to differentiate the star performers at senior levels within their organizations from the average ones. Those individuals were then extensively interviewed and tested, and their capabilities were compared. This process resulted in the creation of lists of ingredients for highly effective leaders. The lists ranged in length from seven to 15 items and included such ingredients as initiative and strategic vision. When I analyzed all this data, I found dramatic results. To be sure, intellect was a driver of outstanding performance. Cognitive skills such as big-picture thinking and long-term vision were particularly important. But when I calculated the ratio of technical skills, IQ, and emotional intelligence as ingredients of excellent performance, emotional intelligence proved to be twice as important as the others for jobs at all levels. Moreover, my analysis showed that emotional intelligence played an increasingly important role at the highest levels of the company, where differences in technical skills are of negligible importance. In other words, the higher the rank of a person considered to be a star performer, the more emotional intelligence capabilities showed up as the reason for his or her effectiveness. When I compared star performers with average ones in senior leadership positions, nearly 90% of the difference in their profiles was attributable to emotional intelligence factors rather than cognitive abilities. Other researchers have confirmed that emotional intelligence not only distinguishes outstanding leaders but can also be linked to strong performance. The findings of the late David McClelland, the renowned researcher in human and organizational behavior, are a good example. In a 1996 study of a global food and beverage company, McClelland found that when senior managers had a critical mass of emotional intelligence capabilities, their divisions outperformed yearly earnings goals by 20%. Meanwhile, division leaders without that critical mass underperformed by almost the same amount. McClelland’s findings, interestingly, held as true in the company’s U.S. divisions as in its divisions in Asia and Europe. In short, the numbers are beginning to tell us a persuasive story about the link between a company’s success and the emotional intelligence of its leaders. And just as important, research is also demonstrating that people can, if Component Definition Hallmarks Example Selfawareness Knowing one’s emotions, strengths, weaknesses, drives, values, and goals—and their impact on others • Self-confi dence • Realistic selfassessment • Self-deprecating sense of humor • Thirst for constructive criticism A manager knows tight deadlines bring out the worst in him. So he plans his time to get work done well in advance. Selfregulation Controlling or redirecting disruptive emotions and impulses • Trustworthiness • Integrity • Comfort with ambiguity and change When a team botches a presentation, its leader resists the urge to scream. Instead, she considers possible reasons for the failure, explains the consequences to her team, and explores solutions with them. Motivation Being driven to achieve for the sake of achievement • A passion for the work itself and for new challenges • Unfl agging energy to improve • Optimism in the face of failure A portfolio manager at an investment company sees his fund tumble for three consecutive quarters. Major clients defect. Instead of blaming external circumstances, she decides to learn from the experience—and engineers a turnaround. Empathy Considering others’ feelings, especially when making decisions • Expertise in attracting and retaining talent • Ability to develop others • Sensitivity to crosscultural differences An American consultant and her team pitch a project to a potential client in Japan. Her team interprets the client’s silence as disapproval, and prepares to leave. The consultant reads the client’s body language and senses interest. She continues the meeting, and her team gets the job. Social Skill Managing relationships to move people in desired directions • Effectiveness in leading change • Persuasiveness • Extensive networking • Expertise in building and leading teams A manager wants his company to adopt a better Internet strategy. He fi nds kindred spirits and assembles a de facto team to create a prototype Web site. He persuades allies in other divisions to fund the company’s participation in a relevant convention. His company forms an Internet division—and puts him in charge of it.

After reading this article, please write a short paper (roughly 3-5 pages; 12 point Times New Roman, double spaced, no cover page) that answers the following questions:

1. The article lists 5 key components to Emotional Intelligence (EI). Which one of the five, in your opinion, is the most necessary for a leader to have? Why?

2. In your opinion, which of the 5 key components is the most difficult to develop/learn? Why?

3. The author states that "...the higher the rank of a person considered to be a star performer, the more emotional intelligence capabilities showed up as the reason for his or her effectiveness." Explain what the author means and how does he determine this to be correct?