EQ Business Case 2010(2)

One key challenge in emotional intelligence research is to isolate the effect of EQ from other factors. Clarke (2010), worked to assess the impact of specific emotional intelligence skills above and beyond differences in personality and general intelligence. The study of project managers found those with higher EQ (particularly emotional awareness and understanding emotions) were linked to improved teamwork and more effective handling of conflict. 14 A similar finding occurred in a study of 81 technology professionals in India where EQ was linked to resolving conflicts in a manner that supported mutual gain. 15 These correlations can also be linked to the bottom line. In a compelling study of one of the UK's largest restaurant groups, there was clear evidence that emotionally intelligent leaders were more effective. Managers high

Higher EQ leaders are more likely to make better decisions, engage and influence more effectively, and create the right mood for the job.

in emotional intelligence had restaurants that outperformed others in terms of increased guest satisfaction, lower turnover, and 34% greater profit growth. 16 The link between EQ and leadership was also clear at PepsiCo . In a pilot project, executives selected for EQ competencies far outperformed their colleagues, delivering: • 10% increase in productivity. • 87% decrease in executive turnover ($4m). • $3.75m added economic value. • over 1000% return on investment. 17 Similarly, a study of 358 leaders within Johnson and Johnson identified a strong link between superior performing leaders and emotional competence. The conclusion is powerful: " Emotional competence differentiates successful leaders. " 18

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