Home Articles Leadership: Are your leaders part of the solution or part of the...

    Leadership: Are your leaders part of the solution or part of the problem?

    0
    THE LEADERSHIP THING

    Geoff Mulray

    Last issue we talked about organisational climate – the environment your people operate and exist in – and its capacity to profoundly impact the bottom line.

    This issue we explore the single biggest factor affecting climate: leadership. For years, organisations have looked for ways to increase a leader’s effectiveness and to determine what differentiates an average leader from a great leader.

    An overwhelming amount of research over the last 20 years suggests that the "magic" ingredient of effective leadership is "Emotional Intelligence".

    Research shows that across all occupations and roles, emotional intelligence is twice as important as IQ plus technical skills. Emotional intelligence accounts for more than 85 percent of what sets star performers apart from the average.

    Our experience, backed by research conducted by the Hay Group, shows that the higher the level of a job’s complexity and authority, the greater the impact of outstanding leadership on the bottom-line. We are talking about "hard" results, such as improved profitability from higher productivity, increased sales and lower costs, as well as "softer" results, including increased morale and motivation, greater cooperation and lower staff turnover.

    Daniel Goleman, a leading pioneer of Emotional Intelligence, describes EI as being:

    "The capacity for recognising our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships."

    Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with Emotional Intelligence. The competencies fall into four areas:

    1. Self-Awareness: (Knows oneself) Ideally the self-aware individual recognises how their feelings affect them and others in the team. Importantly, they assess themselves realistically and have a deep understanding of their own strengths and weaknesses, needs and drives. Self-aware individuals have a firm grasp of their own capability and are generally confident.
    2. Self-Management: (Manages feelings and impulses) Self-management revolves around the capacity for effectively managing bad moods and emotional impulses, choosing words carefully and avoiding hasty judgments. In a business context, leaders create an environment of trust and fairness. They display a strong drive to succeed and always look forward with a view to creating opportunities and avoiding pitfalls.
    3. Social Awareness: (Understands social dynamics) The capacity to understanding others: what they say, how they feel and why they behave in certain ways. Leaders performing well in this area are able to appreciate different people’s viewpoints and encourage different perspectives.
    4. Relationship Management: (Advanced socially) Leaders act in ways that enable them to get desired results from others and reach personal goals. They provide clear direction and create a motivating environment and climate for others. Individuals competent in this area are capable of bringing conflict out into the open and finding common ground in most situations.

    The competencies in the first three areas are seen to be mandatory in order for an individual to be effective in the last area. And, it is this combination of competencies in the last area of relationship management that drive performance. These are the competencies that leaders use to inspire organisations to greatness; that salespeople use to build strong and profitable customer relationships; and that employees who deal with customers every day use to delight customers.

    The encouraging thing for all of us is that none of this is theory. The impact of Emotional Intelligence is a proven fact and backed by hard, sustainable, ongoing, positive results. Emotionally intelligent leaders have greater leadership success.

    Research conducted by UCLA indicates that only seven percent of leadership success is attributable to intellect; 93 percent of success comes from trust, integrity, authenticity, honesty, creativity, presence, and resilience – all of which are EI competencies.

    So are we just born with emotional intelligence?

    The great news is that studies attribute 90 percent of leadership effectiveness to EI competencies that can be developed. In other words, these EI competencies are not innate talents. They are learned abilities.

    Our work in helping leaders develop their EI has shown measurable improvements in organisational agility, resilience, focus, customer service and, most importantly, business results.

    So, if you’re looking for improved performance, Emotional Intelligence might be the next step forward in the evolution of your leadership team.

    Red Sky is a consultancy that helps Australian and multinational organisations to maximise business performance by converting strategy into action. www.redskygroup.com.au