Ayesha Tidwell, Finance Leadership Program

Emotional Intelligence (EI) and Leadership

2

What is Emotional Intelligence?

The ability to manage ourselves and our relationships effectively.

3

Another way to think about EI

For every action (or lack of action) there is a reaction or consequence.

• For every interaction (or lack of interaction) there is a reaction or consequence.

Simply put, emotional intelligence is…

Understanding the reaction or consequence any given interaction (or lack thereof) will

produce and acting in such a way to intentionally attain the reaction or

consequences you desire.

4

Challenge #1: IQ vs. EI

Common Assumption: I am very intelligent and my finance and technical skills are top notch. My analytical skills are very well developed. I don’t need emotional intelligence. Those “soft skills” won’t matter much, especially if I am smart and my technical skills are superior.

Reality: IQ and intelligence are important but they are threshold capabilities, meaning they are entry level requirements for executive positions. Emotional intelligence is the “sine qua non” of leadership. Without it, a person can have the best training, an incisive, analytical mind, and an endless supply of great ideas, but she/he still won’t make a great leader.

The most effective leaders share one common trait: they all have a high degree of emotional intelligence.

5

What is Leadership?

Delivering results through people.

6

Challenge #2: What if I don’t want to be a leader?

Describe a situation, professional or social, in which emotional intelligence capabilities are not useful or

relevant for success?

• Leadership is not a prerequisite for emotional intelligence.

• Emotional intelligence is relevant to anyone living in a society with other people.

• Emotional intelligence is a prerequisite for anyone who wants to be an effective leader.

7

Who are you drawn to?

Parents

Teachers

Coaches

Bosses

BoyfriendsGirlfriends

Coworkers

Siblings

FriendsRoommates

Your Favoritepeople

• Think about the people you know in each category.

• Who is your most favorite person in each category?

• Why are they your favorite? How do you feel when you are with them?

• Do you see any common traits between all your favorite people?

• How many of the EI components do they possess?

8

The Five Components of Emotional IntelligenceSelf Awareness Self-Regulation Motivation Empathy Social Skill

The ability to recognize and understand your moods, emotions, and drives, as well as their effect on your performance and others.

The ability to control or redirect disruptive impulses and moods. The ability to think before acting.

A passion for work for reasons beyond money or status. A love of learning and achievement.

The ability to understand the emotional make-up of other people. Skill in treating people according to their reactions.

Proficiency in managing relationships and building networks. An ability to find common ground and build rapport.

Self-confidence Realistic self-

assessment Self-deprecating

sense of humor

Trustworthiness Integrity Comfort with

ambiguity Openness to

change

Strong drive to achieve

Optimism, even in the face of failure

Organizational commitment

Passion for learning

Building and keeping strong relationships

Cross-cultural sensitivity and tolerance

Excellent customer service

Effectiveness in accepting or leading change

Persuasiveness Expertise building

and leading teams Good

communication

9

How does a great leader act?

Think about the great leaders you know personally. Describe the one thing that

makes them special to you.

10

Leadership Types

Common Traits:•Everyone’s buddy•Avoids conflict•Socializes with subordinates outside of work•Trusted

What is wrong with this type if used all the time?

Common Traits:•Mean/no emotion•Controlling•Micromanager•Inflexible•Black & white

What is wrong with this type if used all the time?

What is the ideal type?

Extreme Social Leader

Extreme Controlling

Leader

?

Do what I say!

PeopleFirst!

Comewith me

Authoritative LeaderCommon Traits:•Builds trust and credibility with people•Always working towards attainment of business goals

11

Connection b/w EI and PerformanceIndividual

Contributors

Productive, engaged workforce; innovation; nimble and adaptable; customer service a priority; ambassadors for the company

Think of great people you have worked with before. Did they display emotional intelligence?

Leaders Effective; drive results; retain people

Rudy Guliani

Colin Powell

Jack Welch

Kerry Killinger

Enterprise EI culture impacts up to 1/3 of financial performance* in addition to economic conditions and competitive dynamics

Southwest, Nucor Steel, Walmart, Dell, Toyota, Ebay, GE

*financial performance = return on sales, revenue growth, efficiency and profitability

12

“The Wyatt consulting firm published a study in 2000, which states that significantly improving human capital practices can create a 30 percent increase in stockholder value.”

If your employees give you top scores to the following questions, the company is well on its way to a engaged and productive workplace:

Do I know what is expected of me at work? Do I have the materials and equipment I need to do my work right? Do I have the opportunity to do what I do best every day? In the last seven days, have I received recognition or praise for good work? Does my supervisor, or someone at work, seem to care about me as a person? Is there someone at work who encourages my development?

Source: First, Break All The Rules by Marcus Buckingham and Curt Coffman

Immediate managers are the key to engaged employees.

Real Revenue

Sustainable Growth

Loyal Customers

Engaged Employees

The Financial Benefits of EI

13

The Other Benefits of EI

Mastery of EI improves all relationships, hence quality of life increases.

Dating/MarriageParent/Child CommunityChurch/SpiritualTeamsProfessionalSiblings/FamilyVolunteerWhat other relationships can improve?

14

Create an extraordinary life with EI

A Sample Unintentional Life: Parents picked school Parents picked major Not much extracurricular

involvement Take first job offered Get promoted in same job or field Has not moved far from home Marry young Have kids early Don’t travel much Follow directions and don’t rock the

boat

A Sample Intentional Life:

As early as high school identified interests, passions and future goals

Researched and selected school/major based on alignment with future goals

Researched and selected jobs based on alignment with personal priorities (work, life, etc.)

Not afraid of varied and different positions; may seek them out

Geographic locations intentional based on life goals

Family plans (marriage, kids, house) are part of master life plan

May travel often

When you look back on your life, have you lived the life you dreamed? Now is the time to begin your intentional, extraordinary life!

15

Growing EI• EI can be learned

• Take months, not days

• You can’t go to a seminar or read a “how to” manual to learn it

• EI is born in the neurotransmitters of the brain’s limbic system which governs feelings, impulses, and drives

• The limbic system learns best through motivation, extended practice and feedback

• EI also increases with age or maturity

• Discover your strengths and weaknesses

•Personality tests such as Myers Briggs

•Ask for feedback

•Create a life plan outlining what you want accomplish in life and how to achieve those goals

16

Our Broad Plan:

• IQ and technical expertise are “threshold competencies”. A certain level of IQ and knowledge or technical expertise is necessary to get you in the door.

• It is the combination of emotional intelligence and technical knowledge that separate the star performers from the average ones.

• We provide planned personal development, to assure that each Associate has the right balance of skills for future leadership success.

WaMu’s Programs and EI

17

To be an effective, positive leader, I believe that you need, at a minimum, the following characteristics.

1. You have to be genuinely interested in, and like, people. Show them tolerance, patience, respect and empathy. Drown them in a tsunami of gratitude for their marvelous works. Show them that you admire, value and love them as individuals, rather than just as "producers." Through

word, and by deed, join in their every personal exaltation and their every personal mishap and grief. People will respond with an esprit de corps--a

desire to perform because they want to, not because they have to. An organization bound by love is far more powerful than one bound by fear.

Excerpt: McCombs BBA Commencement 2004

Keynote Speaker - Herb Kelleher, the founder and chairman of Southwest Airlines:

18

Some Related Links

Articles:“What Makes a Leader” by Daniel GolemanHarvard Business Review, November- December 1998“Leadership That Gets Results” by Daniel GolemanHarvard Business Review, March - April 2000

Books:Emotional Intelligence by Daniel GolemanPrimal Leadership by Daniel GolemanLeadership by Rudy GiulianiJack Welch on Leadership by Robert SlaterNUTS! By Kevin Freiberg, Jackie Freiberg, Tom Peters

Web ResourcesGeneral Colin Powell, A Leadership Primerhttp://www.blaisdell.com/powell/Keynote Herb Kelleher at the McCombs BBA Commencement 2004 http://www.mccombs.utexas.edu/news/speaker_series/kelleherspeech.asp

19

Questions?