Thursday, 23 January 2014

Emotional intelligence for business success


Emotional Intelligence is the ability to relate and empathize with emotions in others.  While traditional attitudes in business have preferred to closet most emotions except a prescribed few business-related qualities like drive, ambition, and single-mindedness, 21st century attitudes assert that emotional intelligence in business isn’t just important, it may be essential for success.

21st Century Work Ethics
Collaboration is one of the major tenets of business in the 21st century.  Saying it’s important, however, doesn’t help businesses achieve it in practice.  One reason collaboration is so important is because business is becoming increasingly global.  Offices spread across nations are learning to work together as a result of new partnerships and relationships with new companies.  The gel that helps support collaboration in this century isn’t single-mindedness or even an aggressive business drive.  Instead, it’s things like emotional intelligence that increasingly allow people to work together—and work together well.

Management and Emotional Intelligence
When management is not emotionally intelligent, business owners see high turnover rates.  Workers, whether new to the business or veterans, simply work better when they are with emotionally intelligent people. A lack of understanding leads to conflict and, in some cases, weekly or even daily conflict.  A manager that can’t relate to others isn’t likely to have the emotional tools required to build and manage teams.  People without emotional intelligence may be quite intelligent otherwise and almost certainly are when they land supervisory positions; however, becoming a boss does not mean they have the right skills to be a leader in this 21st century business climate.

Why Do Managers Need to be Emotionally Intelligent?
One of the main reasons to have a team of emotionally intelligent managers is because then business is likely to be better.  According to Computer Weekly, “The world’s most effective leaders are alike in one crucial way: they all have a high degree of what has come to be known as emotional intelligence quotient or ‘EQ’ for short.” The article goes on to explain, “Psychologist David McClelland did some thorough leadership research that found that executives with higher EQ outperformed their annual revenue targets by 15-20%, and that 87% of the executives rated highly on EQ came in the top 33% of performance-related bonuses.”

Some Traits of Emotionally Intelligent Managers
When considering promoting someone to management, look for applicants who boast rewarding relationships with other people, cope well with pressure, and lead by example.  The Harvard Business Review asserts that emotional intelligence is “firm, but not rigid,” implying that some people may get better at it if it becomes a priority.  On the other hand, when you make it a point to hire and promote employees with emotional intelligence, you’re more likely to achieve both the work climate and success you want for your 21st century business.

What do you think? On the flip side, what are some traits you’ve encountered of emotionally
idioticunintelligent managers?

Contributed by
Shafat Qazi, Founder and CEO of BQE Software, is an engineer-turned-entrepreneur who created the most awarded time billing software ever, BillQuick, while still in college. He set out to make time tracking, billing and project management easier for engineers as well as all service professionals, and continues to perfect BQE Software products hands-on today.

 Why Entrepreneurs Should Care About Emotional Intelligence

emotional intelligence small business 

When asked what the most important qualities for entrepreneurs are, you may come up with a list that’s completely different from that of the next person.  

Successful entrepreneurs have a whole list of traits that serve them well in their endeavors. Commonly cited qualities might include determination, passion, confidence, and optimism – all distinctive traits of entrepreneurs and instrumental in achieving small business success.

But there’s one quality that you might not have thought to add to your list: emotional intelligence.
It’s the single quality that plays a defining role in the success of most entrepreneurs.

What is Emotional Intelligence (EQ)?
Emotional intelligence, otherwise known as EQ, is defined as the ability to perceive and understand the emotions of both oneself and others.

With this knowledge, individuals are able to navigate social networks, make informed decisions, and react to behavior accordingly. This quality is divided into two major categories –  personal and social competence, – each which have their own core skills.

Personal competence is comprised of self-awareness and self-management skills, which centers more on the individual’s ability to perceive his or her own emotions.

On the other hand, social competence, which is made up of social awareness and relationship management skills, determines the entrepreneur’s ability to understand and react to the moods and behaviors of others. Both are equally important for entrepreneurs and can play a major role in whether the individual succeeds or not.

Why is Emotional Intelligence Important?
Emotional intelligence provides entrepreneurs with a set of social and personal skills that can help them in any situation or environment.

The following are just a few of the skills that are enhanced by emotional intelligence:

Decision Making:
One of the major components of emotional intelligence is self-awareness, which enables individuals with the ability to accurately perceive their emotions as it happens. They are able to keep stray emotions in check, preventing them from affecting any decisions or choices. As a result, emotionally intelligent individuals are able to look at the big picture without swayed by the details.

Customer Satisfaction:
Small businesses are nothing without happy, satisfied customers. Luckily, EQ provides entrepreneurs with the ability to deliver customer satisfaction. Emotional intelligence allows the individual to be more empathetic.

They have the ability to perceive and understand the emotions of others. They are able to help customers with their buying decisions and keep them engaged, providing a more comprehensive, satisfying experience.

Leadership:
Entrepreneurs are often responsible for leading the direction of their endeavor and clearly communicating goals to their teams. Therefore, they must be able to form a good rapport with their employees, inspiring and motivating wherever possible. Emotional intelligence provides entrepreneurs with the enhanced ability to manage interactions and form meaningful relationships. In addition, individuals with high levels of emotional intelligence tend to be more self-confident and adaptable – vital traits for any entrepreneur.

Conflict Resolution:
Whether there is a dispute with a customer or a disagreement between team members, entrepreneurs are bound to run into conflicts. However, emotional intelligence provides the individual with conflict resolution skills. Entrepreneurs with this quality are able to gauge the emotions of both parties and provide a resolution that will connect with both. With this ability, they are able to quickly placate the threat to efficiency and productivity.

 Conntributed by Sara Fletcher
Today’s Guest Poston Start Your Own Small Bizwas provided by Sara Fletcher. Sara  is interested in emotional intelligence in leadership and understanding how it affects her life. She loves to explore psychology, business, and sports in relation to her test of emotional intelligence.