Bryan Kramer
November 24, 2015

Emotional Intelligence: How Successful Companies Create It

For decades, a lot of emphasis has been placed on understanding an employee’s intelligence quotient (IQ)-referring to that set of cognitive abilities that allows us to acquire knowledge and to solve problems. But in business (as in life) if you only focus on this part of an individual, you are missing one of the major parts of one’s success equation.

Truth be told, if you want your business to succeed, you need more than just smart employees. You need people that have a high level of emotional intelligence. Because in today’s connected world-building relationships depend on it.

Understanding Emotional Intelligence.

The concept of emotional intelligence (EI) has first widely discussed in Dr. Daniel Goleman’s 1996 bestseller, which was based on years of research by noted social scientists Peter Salavoy and John Mayer.

In it, he defined EI as the ability to recognized, understand and manage one’s emotions. Mastering these skills not only has a direct effect on an individual’s ability to make sound decisions for themselves. But it can also give them insight on how to understand and influence the emotions of others.

According to Goleman, there are five constructs that make up EI:

Self-awareness: Which is the ability to know one’s emotions, strengths, weaknesses, drives, values and goals and recognize their impact on others

Self-regulation: The ability to control one’s disruptive emotions and impulses while adapting to changing circumstances.

•  Social skill – How a person manages relationships to move people in the desired direction

 Empathy – The ability to understand the emotions of other people’s

• Internal Motivation – What internally drives a person to achieve-without the influences of external factors such as money or status.

Why is this Important to Your Company?

It would be easy to dismiss emotional intelligence as mere pop psychology. However, studies have consistently shown that the most successful business executives have a high level of EI. In fact, research presented by the Carnegie Institute of Technology concluded that 85% of our financial success is directly related to our ability to walkingcommunicate, negotiate and lead.

Need more proof? How about the now-famous 1997 case study involving cosmetics giant L’Oreal? When the company wanted to make a dramatic shift in their sales force, they decided to recruit and higher agents that had exceptionally high emotionally intelligence levels. The resulting increase in profits exceeded 2.5 million dollars. They also experience a near 63% drop in turnover.

More recently, businesses such as SAP are clamoring to enroll their employees into a mindfulness course created by a Google engineer. The class teaches self-awareness as a way to dramatically reduce stress and increase both personal and professional communication.

The class has become so popular, it has spawned both a nonprofit organization (Search Inside Yourself Leadership Institute) and a best-selling book endorsed by the Dalai Lama.

How to Boost Your Company’s Emotional Intelligence

With EI playing a major factor in growing a company’s success-why don’t more entrepreneurs utilize it more? Mainly because emotional intelligence isn’t something that’s taught in school. However, there are ways that you can foster higher EI among your workforce.

• Start with a values statement: More than just a statement about corporate culture, a good values statement lays the groundwork on how employees should treat both the public and each other. It is often a great way to how important the ideals of listening, fairness and kindness should be to your staff.

• Create a work environment that encourages communication: Does your company space allow for an exchange of diverse opinions?

• Establish a culture of accountability-from the top down: Want motivated employees that are eager to please the customers while doing the right thing? The best way to obtain this is to lead by example.

• Help your employees find their significance both in and out of the office: Work-life balance are often interconnected with emotional intelligence. So, rather than mandating your employees become mindless office drones focusing solely on profit margins, help them to envision how professional success can enrich their family life.

• Become mindful of your employee’s needs: The best way to foster an atmosphere of caring is to becoming an engaging leader that’s ready to listen and react when needed.

Key Takeaway Individuals with high emotional intelligence are those who have the ability to recognize, understand and manage their emotions. Studies have shown that the most successful businesses are those who utilize EI as part of their business practices. Although this may not be an entirely innate process, workplaces looking to benefit from these traits can do so by fostering an atmosphere that encourages communication, fairness and a solid work/life balance.  


bryan_kramerOriginally published on, entitled “How Successful Companies Create Emotional Intelligence” and re-published here with permission

Bryan Kramer is the CEO of PureMatter, an award winning global digital agency based in Silicon Valley, a social strategist, TED speaker and recent author of the acclaimed book: Human to Human #H2H.

Image attribution: Copyright: ‘‘ / 123RF Stock Photo

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