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Dealing with Risk AversionA How To Book Of Self Managed Super FundsEmotional Intelligence - Why It May Be Important - Part 2Email Marketing WorkshopsHung parliament: Independents, take as much time as you likeEmail Marketing Business Opportunity - Helen Bairstow
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Emotional Intelligence - Why It May Be Important - Part 2

Click here to buy - A How To Book of SMSF's by Tony Negline
Lester Wills

This is the second in the series that provides a condensed version of the ATC Digest article that will be appearing in that publication soon.

Last time I talked about Emotional Intelligence and attempted to illustrate what it is. I referred to work by Daniel Goleman who argues that:

self-motivation, empathy and handling relationships.

This time I am looking at whether the idea is actually useful. Cary Cherniss from Rutgers University produced a paper that provided what he called the business case for Emotional Intelligence for the Consortium for Research on Emotional Intelligence in Organizations that cited a series of examples where EI was used effectively. This research demonstrates the effectiveness of EI in business.

He provides some examples of where EI has proved useful.

The US Air Force used a measure of EI to select recruiters and found that the most successful recruiters scored significantly higher in several emotional intelligence competencies. They also found that by using emotional intelligence to select recruiters, they increased their ability to predict successful recruiters by almost 300.

Experienced partners in a multinational consulting firm were assessed on the EI competencies plus three others. Partners who scored above the median on 9 or more of the 20 competencies delivered more profit from their accounts than did other partners.

An analysis of more than 300 top-level executives from fifteen global companies showed that six emotional competencies distinguished stars from the average.

In jobs of medium complexity (sales clerks, mechanics), a top performer is 12 times more productive than those at the bottom and 85% more productive than an average performer. In the most complex jobs (insurance salespeople, account managers), a top performer is 127% more productive than an average performer.

At L'Oreal, sales agents selected on the basis of certain emotional competencies significantly outsold salespeople selected using the company's old selection procedure.

In a national insurance company, insurance sales agents who were weak in emotional competencies such as self-confidence, initiative, and empathy sold policies with a lower average premium than those who were very strong in at least 5 of 8 key emotional competencies.

A large beverage firm, that started selecting people based on emotional competencies found their retention rates went up dramatically. Furthermore, the executives selected based on emotional competence were far more likely to perform in the top third based on salary bonuses. Those who lacked such competencies under-performed.

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

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 and formal grievances were reduced significantly. Not only that the plant exceeded productivity goals.

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.

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.

At a national furniture retailer, sales people hired based on emotional competence had half the dropout rate during their first year.

Financial advisors at American Express whose managers completed the Emotional Competence training program were compared to an equal number whose managers had not. During the year following training, the advisors of trained managers grew their businesses by over 18% compared to just 16% for those whose managers were untrained.

So, EI is relevant and significant.

More next time.

References:

Emotional Intelligence - Why It Can Matter More Than IQ

Daniel Goleman

The Business Case for Emotional Intelligence

Cary Cherniss, Ph.D. Rutgers University


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