Ayesha Tidwell Finance Leadership Program Emotional Intelligence EI

Ayesha Tidwell, Finance Leadership Program Emotional Intelligence (EI) and Leadership

What is Emotional Intelligence? The ability to manage ourselves and our relationships effectively. 2

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. 3

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. 4

What is Leadership? Delivering results through people. 5

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. 6

Who are you drawn to? Friends Roommates Parents Teachers Siblings Your Favorite people • Who is your most favorite person in each category? Coworkers Boyfriends Girlfriends Coaches Bosses • Think about the people you know 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? 7

The Five Components of Emotional Intelligence Self 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 selfassessment § 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 8

How does a great leader act? Think about the great leaders you know personally. Describe the one thing that makes them special to you. 9

Leadership Types People First! Come with me Do what I say! Extreme Social Leader ? Extreme Controlling Leader 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? What is the ideal type? Authoritative Leader Common Traits: • Builds trust and credibility with people • Always working towards attainment of business goals Common Traits: • Mean/no emotion • Controlling • Micromanager • Inflexible • Black & white What is wrong with this type if used all the time? 10

Connection b/w EI and Performance Individual Productive, engaged workforce; Contributors 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 11

The Financial Benefits of EI “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. ” Real Revenue Sustainable Growth Loyal Customers Engaged Employees Immediate managers are the key to engaged employees. 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 12

The Other Benefits of EI Mastery of EI improves all relationships, hence quality of life increases. §Dating/Marriage §Parent/Child §Community §Church/Spiritual §Teams §Professional §Siblings/Family §Volunteer §What other relationships can improve? 13

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! 14

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 15

Wa. Mu’s Programs and EI 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. 16

Excerpt: Mc. Combs BBA Commencement 2004 Keynote Speaker - Herb Kelleher, the founder and chairman of Southwest Airlines: 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. 17

Some Related Links Articles: “What Makes a Leader” by Daniel Goleman Harvard Business Review, November- December 1998 “Leadership That Gets Results” by Daniel Goleman Harvard Business Review, March - April 2000 Books: Emotional Intelligence by Daniel Goleman Primal Leadership by Daniel Goleman Leadership by Rudy Giuliani Jack Welch on Leadership by Robert Slater NUTS! By Kevin Freiberg, Jackie Freiberg, Tom Peters Web Resources General Colin Powell, A Leadership Primer http: //www. blaisdell. com/powell/ Keynote Herb Kelleher at the Mc. Combs BBA Commencement 2004 http: //www. mccombs. utexas. edu/news/speaker_series/kelleherspeech. asp 18

Questions? 19