“No doubt emotional intelligence is more rare than book smarts, but my experience says it is actually more important in the making of a leader. You just can't ignore it.”
- Jack Welsh 66
Leadership and Financial Performance: The Bottom Line Perspective
In Working With Emotional Intelligence , Daniel Goleman reported that 80-90% of the competencies that differentiate top performers are in the domain of emotional intelligence. 8 While IQ and other factors are important, it's clear that emotional intelligence is essential to optimal performance. Emotional Intelligence is more than twice as predictive of business performance than purely cognitive intelligence and is more predictive of business performance than are employee skill, knowledge and expertise. 9 Numerous studies explore the financial implication of emotional intelligence; particularly how higher EQ leaders produce more powerful business results. One such study tested 186 executives on EQ and compared their scores with their company’s profitability; leaders who scored higher in key aspects of emotional intelligence (including empathy and accurate self-awareness) were more likely to be highly profitable. 10 The Harvard Business Review recently reminded leaders that their excellence begins and ends with their inner resources:
"Executives who fail to develop self-awareness risk falling into an emotionally deadening routine that threatens their true selves.
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White Paper The Business Case for Emotional Intelligence
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