~ Impact on Business ~
“When the human species has finally learned to harness emotion, we
will be ready to take the next evolutionary leap.”
- Charles Darwin
A study completed in 1994 by the Centre
for Creative Leadership showed that 75% of careers are derailed for
reasons related to emotional competencies, including inability to
handle interpersonal problems; unsatisfactory team leadership during
times of difficulty or conflict; or inability to adapt to change or
elicit trust. Clearly in the challenging times that businesses
are operating now, it is imperative that those in leadership positions
or positions of some influence are highly skilled in these emotional
competencies. The workplace culture and the performance of every
individual is directly influenced by the behaviour and style of
leadership prevalent in the organization. Strong emotional
intelligence will help to make an exceptional leader.
UCLA research indicates
that only 7% of leadership success is attributable to intellect;
93% of success comes from trust, integrity, authenticity, honesty,
creativity, presence, and resilience
(cited in Cooper and Sawaf, 1996).
Many companies are already reaping the
benefits of strategically employing the use of Emotional Intelligence
assessments and development programs. Some examples include:
-
In one year, the US Air Force invested less
than $10,000 for emotional competence testing and saved $2,760,000 in
recruitment.
-
When a large beverage company started
selecting division presidents based on emotional competencies, the
number of individuals who left the position within two years decreased
from 50% to 6% (McClelland, 1999)
-
At L’Oreal, sales agents selected on the
basis of certain emotional competencies significantly outsold
salespeople selected using the company’s old selection procedure by
$91,370, for a net revenue increase of $2,558,360. Salespeople
selected on the basis of emotional competence also had 63% less
turnover during the first year . (Spencer & Spencer, 1993;
Spencer, McClelland, & Kelner, 1997).
-
After supervisors in a manufacturing plant
received training in emotional competencies, lost-time accidents were
reduced by 50 percent, formal grievances were reduced from an average
of 15 per year to 3 per year, and the plant exceeded productivity
goals by $250,000. (Pesuric & Byham, 1996).
Assessing for and developing emotional
intelligence competencies may well be the most significant strategy in
moving us all towards the next stage of evolution as Darwin suggested
years ago. Given the challenges we face in the workplace, it is
necessary for us to find new ways to engage and navigate through
emotions to meet these demands. |
