What Makes a Leader?

Bright, innovative and persuasive leaders have the special talent of winning over employees and achieving unprecedented results. Being an effective leader, however, isn’t easy for everyone. Daniel Coleman first discussed the concept of emotional intelligence in the 1998 Harvard Business Review Article “What Makes an Effective Leader?” He studied 200 large companies and found that effective leaders didn’t just have toughness, vision and motivation – they also have a high level of “emotional intelligence.”

Even if an executive is highly trained and has bright ideas, they won’t make a good leader if they don’t have emotional intelligence, according to Coleman. Fortunately, companies can learn to identify these traits and help executives develop the skills needed to support emotional intelligence.

Identifying Emotional Intelligence

When searching for senior managers and executives, a list of skills such as strategic vision and ability to take initiative are tested. During these studies Coleman found that emotional intelligence is twice as important as the other factors used for identifying future leaders. It was also determined the higher the employee was on the organizational chart, the larger role emotional intelligence played in success. For example, David McClelland, a researcher of organizational behavior, found senior managers with emotional intelligence outperformed peers by 20 percent.

The Five Components of Emotional Intelligence

There are five components of emotional intelligence including: self awareness, self-regulation, motivation, empathy and social skills. Here’s a quick breakdown of each component.

Self-Awareness: People who are self aware have a high level of confidence, sense of humor about themselves and a realistic handle on their skills. They also have the ability to understand people’s emotions and moods and their affect on other people. A person with a high degree of self-awareness will be able to turn down a lucrative job offer because it doesn’t mesh with his professional goals and values. Having a high level of self-awareness allows individuals to be more focused on their career path and avoid becoming bored and uninspired in their work.

Self-Regulation: Professionals with this skill are generally trustworthy and have a high level of integrity. They’re also open to organizational changes and have the ability to adapt well. Think of self-regulation as the inner conversation in your head. For example, Coleman discusses an executive that is angry at his team for poor performance. A manager without self-regulation may pound his hands on the table and express his frustration. An executive with a keen sense of self-regulation, however, will explain his disappointment and move on to more productive conversations about why the incident occurred.

Motivation: People with this quality are highly optimistic, even when a company is facing difficult times. Professional motivation stems from reasons deeper then compensation and status. They’re also highly energetic and persistent in their work.

When looking for people with this quality, look for executives with a track record of seeking new challenges, overcoming obstacles and a sense of pride about their work. These people are constantly looking for ways to be innovative and improve performance.

Empathy: Leaders with a high level of emotional intelligence have the ability to empathize with employees, leading to better rates of employee retention. They are able to anticipate people’s emotional reactions and diffuse situations. A manager who possesses empathy considers employee feelings when making business decisions. It doesn’t mean that “feelings” are the only factor, but simply a consideration.

Social Skills: The final skill of people with emotional intelligence is a high degree of social skills. Having these skills allows people to be more persuasive and build highly effective teams. They’re also able to build effective networks and successfully create rapport with business associates.

For example, consider an executive with a high level of social skills. He is able to be friendly with business associates while persuading them towards the desired outcome.

Training for Emotional Intelligence

Since emotional intelligence is a precursor to leadership success, many people wonder if you can “teach emotional intelligence.” Emotional intelligence resides in the brain’s limbic system. These neurotransmitters are responsible for motivation, drive and impulses. Most training programs cater to the“neocortex” of the brain which focuses on analytical abilities.

Emotional intelligence can be taught by revamping training techniques. When conducting this type of training, focus on breaking behavioral habits that work against emotional intelligence. Take for example, a sales woman who doesn’t listen well and interrupts business associates. When teaching her emotional intelligence, feedback should be given when the behavior is occurring so she can reshape her responses. An executive who doesn’t have a high degree of empathy may be feared by subordinates. Practicing situations and receiving feedback can build a higher level of empathy and boost management ability.

When hiring executives, understanding their level of emotional intelligence can enhance your company’s performance. Developing these skills in existing employees can be beneficial as well. However, building emotional intelligence is only possible if employees have a strong desire to change.

Resource:
Daniel Coleman. “What Makes a Leader?” Harvard Business Review, January 2004.


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Mark Jordan is the Managing Principal of VERCOR, an investment bank that creates liquidity for middle market business owners. He is the author of “Driving Business Value in an Uncertain Economy”, “Selling Your Business the Easy Way”, “Enhancing Your Business Value…The Climb to the Top” and co-author of “The Business Sale…A Business Owner’s Most Perilous Expedition.” For more information, contact him at 770.399.9512 770.399.9512 or click here to email Mark.