Our focus this fortnight is on Emotional Intelligence, the concept that is shaking organizational structures around the world.

We do hope you enjoy this issue of 'Equations'

Studies have proved that the correlation between emotional intelligence and performance on the job can be quite high.

• In jobs of medium complexity (sales clerks, mechanics), a top performer is 12 times more productive than those at the bottom and 85 per cent more productive than an average performer

• In the most complex jobs (insurance salespeople, account managers), a top performer is 127 per cent more productive than an average performer (Hunter, Schmidt, & Judiesch, 1990).

• Competency research in over 200 companies and organizations worldwide suggests that about one-third of this difference is due to technical skill and cognitive ability hile two-thirds is due to emotional competence (Goleman, 1998).

In top leadership positions, over four-fifths of the difference is due to emotional competence.

Sales Agents with High Emotional Intelligence.

In a national insurance company, insurance sales agents who were weak in emotional competencies such as self-confidence, initiative and empathy sold policies with an average premium of $54,000. Those who were very strong in at least 5 of 8 key emotional competencies sold policies worth $114,000 (Hay/McBer Research and Innovation Group, 1997

Performance of Division Leaders

• In a large beverage firm, using standard methods to hire division presidents, 50% left within two years, mostly because of poor performance. When they started selecting based on emotional competencies such as initiative, self-confidence, and leadership, only 6% left in two years.

• Furthermore, the executives selected based on emotional competence were far more likely to perform in the top third based on salary bonuses for performance of the divisions they led: 87% were in the top third.

• In addition, division leaders with these competencies outperformed their targets by 15 to 20 per cent. Those who lacked them under-performed by almost 20% (McClelland, 1999).

Executive Derailment

• Research by the Center for Creative Leadership has found that the primary causes of derailment in executives involve deficits in emotional competence.

• The three primary ones are difficulty in handling change, not being able to work well in a team, and poor interpersonal relations.

EI Training Results in Exceeding Productivity

After supervisors in a manufacturing plant received training in emotional competencies such as how to listen better and help employees resolve problems on their own, 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). In another manufacturing plant where supervisors received similar training, production increased 17 percent. There was no such increase in production for a group of matched supervisors who were not trained (Porras & Anderson, 1981.

Accurate Self-Assessment Leads to Superior Performance in Managers

The Ability to Handle Stress is Linked to Success

Another emotional competence, the ability to handle stress, was linked to success as a store manager in a retail chain. The most successful store managers were those best able to handle stress. Success was based on net profits, sales per square foot, sales per employee, and per dollar inventory investment (Lusch & Serpkeuci, 1990)

Learned Optimism leads to Increased Sales of 37%

Handle Your Emotions Well - Create Teamwork and Collaboration

Higher EI - Means Higher Motivation for Sales Reps

For sales reps at a computer company, those hired based on their emotional competence were 90% more likely to finish their training than those hired on other criteria. (Hay/McBer Research and Innovation Group, 1997) Less Turnover With Sales People. At a national furniture retailer, sales people hired based on emotional competence had half the dropout rate during their first year (Hay/McBer Research and Innovation Group, 1997).

Senior Executives with High EI is a Better Predictor of Success

For 515 senior executives analyzed by the search firm Egon Zehnder International, those who were primarily strong in emotional intelligence were more likely to succeed than those who were strongest in either relevant previous experience or IQ. In other words, emotional intelligence was a better predictor of success than either relevant previous experience or high IQ. More specifically, the executive was high in emotional intelligence in 74 per cent of the successes and only in 24 per cent of the failures. The study included executives in Latin America, Germany, and Japan, and the results were almost identical in all three cultures.

Star Performer Competencies

The following description of a "star" performer reveals how several emotional competencies (noted in bold italics) were critical in his success: Michael Lem worked at Tandem Computers. Shortly after joining the company as a junior staff analyst, he became aware of the market trend away from mainframe computers to networks that linked workstations and personal computers (Service Orientation). Iem realized that unless Tandem responded to the trend, its products would become obsolete (Initiative and Innovation).

He had to convince Tandem's managers that their old emphasis on mainframes was no longer appropriate (Influence) and then develop a system using new technology (Leadership, Change Catalyst). He spent four years showing off his new system to customers and company sales personnel before the new network applications were fully accepted (Self-confidence, Self-Control, Achievement Drive) (from Richman, L. S., "How to get ahead in America," Fortune, May 16, 1994, pp. 46-54)

A three-day workshop on 'Psychometric tests and measurement techniques for competency mapping'.
Date: February 11-13, 2004 (in New Delhi) and February 20-22, 2004 (in Mumbai).
Venue: Oasis, opposite TISS, Sion - Trombay Road, Deonar, Mumbai
The Intercontinental Park Royal, Nehru Place, New Delhi
For more details, contact: : Salahkaar Consultants" payable at Pune and be sent to: Banglow No. 6 A, Vijay Shree Cooperative Hsg. Soc, Gandhi Bhavan Road, Kotsshrud, Pune -411 038

Our workplace is a classroom for our spiritual development. Perhaps our real work is to accept the call to greater authenticity, a spirit of inquiry, a purpose worthy of who we are, a more balanced life and joy.

- John Scherer , Founder and director of the Center for Work and the Human Spirit

Are you a professional in HR and/or Psychometric assessment ? Do people around you look up to you as a 'guru' ? Speak your mind and it might just be featured here! Write to Us!

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