Executive Summary Emotional intelligence (EQ) is the ability to use emotions effectively. Since the publication of the initial research in 1990, innovative organizations have begun testing how to integrate EQ into training and hiring to gain competitive advantage. It is becoming increasingly clear that these skills are the foundation of high-performing organizations. A range of implementation strategies have been used to deploy EQ, primarily in selection and development. The competencies are measurable and learnable; they can be improved through training and coaching. The most effective implementation strategies seek to integrate EQ into the organizational culture. While there are numerous implementation strategies, researched EQ applications include: • increased sales performance through recruiting and training more emotionally intelligent salespeople. • improved customer service through recruiting higher EQ customer service reps. • superior leadership performance by developing and recruiting for executive EQ. Companies have demonstrated that using EQ in training and organizational climate change can reduce costs associated with turnover, absenteeism, and low performance. Research has provided clear evidence that emotionally intelligent leaders are more successful. Many of these studies yield bottom-line results: At PepsiCo, for example, executives selected for EQ competencies generated 10% more productivity. High EQ sales people at L’Oreal brought in $2.5 million more in sales. An EQ initiative at Sheraton helped increase market share by 24%. The US Airforce is using EQ to screen pararescue jumpers to save $190 million. One of the most important applications of EQ is in helping leaders foster a workplace climate conducive to high performance. These workplaces yield significantly higher productivity, retention, and profitability, and emotional intelligence appears key to this competitive advantage.
PAGE 3 The evidence is increasingly compelling. The measurable, learnable skills of emotional intelligence make a significant impact on organizational performance. EQ may be essential to differentiating world-class organizations in an increasingly complex and competitive marketplace. White Paper The Business Case for Emotional Intelligence
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