What Qualifies as a Leader?

Emotional intelligence is a requirement for leadership.

Every businessperson has heard a story about an exceptionally intelligent and skilled executive who was promoted to a leadership position only to fail miserably. Additionally, they have heard a story about someone with solid—but not extraordinary—intellectual abilities and technical skills who was promoted to a comparable position and then excelled.

These anecdotes lend credence to the widely held belief that identifying individuals who possess the "right stuff" to be leaders is more an art than a science. After all, superb leaders have a range of personal styles: some are subdued and analytical, while others shout their manifestos from the mountaintops. Additionally, different situations necessitate distinct styles of leadership. Most mergers require a deft negotiator, whereas many turnarounds require a more assertive authority.

However, I have discovered that the most effective leaders share one critical characteristic: they all possess a high level of what has become known as emotional intelligence. That is not to say that intelligence and technical abilities are irrelevant. They are significant, but primarily as "threshold capabilities," or the entry-level requirements for executive positions. However, my research, along with that of other recent studies, demonstrates unequivocally that emotional intelligence is a pre-requisite for leadership. Without it, even with the best training, an incisive, analytical mind, and an endless supply of brilliant ideas, an individual will not make a great leader.

My colleagues and I have spent the last year examining how emotional intelligence operates in the workplace. The relationship between emotional intelligence and effective performance, particularly in leaders, has been examined. And we've seen how emotional intelligence manifests itself in the workplace. How, for example, can you tell if someone has a high level of emotional intelligence and how can you recognize it in yourself? We'll examine these questions in greater detail in the following pages, examining each component of emotional intelligence in turn: self-awareness, self-regulation, motivation, empathy, and social skill.

Incorporating emotional intelligence into your assessments

Today, the majority of large corporations have hired trained psychologists to create what are known as "competency models" to assist them in identifying, training, and promoting potential stars in the leadership firmament. Psychologists have created similar models for lower-level positions as well. And over the last few years, I've analyzed competency models from 188 companies, the majority of which were large and global in scope, including Lucent Technologies, British Airways, and Credit Suisse.

My objective in conducting this work was to ascertain which personal capabilities contributed to exceptional performance within these organizations and to what extent they did so. I classified capabilities into three categories: those that are purely technical in nature, such as accounting and business planning; those that are cognitive in nature, such as analytical reasoning; and those that demonstrate emotional intelligence, such as the ability to collaborate with others and effectiveness in leading change.

To develop several of the competency models, psychologists polled senior executives at the companies to identify the characteristics of the organization's most exceptional leaders. Other models were developed by psychologists using objective criteria, such as the profitability of a division, to distinguish star performers at senior levels within their organizations from average performers. Following that, these individuals were interviewed and tested extensively, and their capabilities were compared. This process resulted in the development of checklists of characteristics of highly effective leaders. The lists were between seven and fifteen items in length and included elements such as initiative and strategic vision.

Here's a dramatic result I found: Intellect definitely influenced outstanding achievement. It was particularly important to have creative thinking and long-term vision. While determining the ingredients of excellent performance, however, I found that emotional intelligence was twice as important as the others.

In addition, my study showed that emotional intelligence was a significant factor in the company, where technical skill is irrelevant. To put it another way, the higher a person's star performer rank, the greater his or her emotional intelligence is seen as being responsible for their accomplishments. almost 90% of the differences in star performers' profiles was due to emotional intelligence factors, not cognitive abilities.

Additional research has shown that emotional intelligence is also associated with successful leadership. David McClelland's work on human and organizational behavior provides an excellent example. McClelland found that in a study conducted on a global food and beverage company in 1996, companies with a critical mass of emotional intelligence abilities had earnings per share increases of 20% over company goals per year. In comparison, leaders who were not in a position to attract many followers underperformed by almost the same amount. Despite his findings, McClelland found that the conclusions he arrived at were essentially the same in the company's U.S. divisions as in the divisions in Asia and Europe.

Personal awareness encompasses one's awareness of their values and objectives. Those who are conscious of where they are headed will be able to make decisions accordingly. One who lacks self-awareness will frequently cause inner turmoil by trampling upon buried values. “It looked good, so I signed on, but I find that the work means nothing to me and I'm always bored.” Self-aware people who mesh with their values often find work to be energizing.

How do you recognize self-awareness? It demonstrates straightforwardness and the capacity to be self-aware. Those who have high self-awareness are able to speak accurately and openly, even if they don't do so in an effusive or confessional manner. One manager I know had been doubtful about a new personal-shopper service her company, a major department store, was about to introduce. Without being prompted by anyone on her team or her boss, she said, “I just can't support the rollout of this service. I really wanted to run the project, but I wasn't chosen. Allow me to handle that. Her feelings were indeed examined; a week later, she was fully supporting the project.

It can often be found in the hiring process. Ask a candidate to describe a time he acted on impulse and regretted it. Candidates who know how they are perceived will admit to failures with a smile. Being self-aware means having a self-deprecating sense of humor.

performance reviews can also identify self-awareness Self-aware people know about their own weaknesses and strengths, and are always willing to receive constructive criticism. People with low self-awareness see the message to improve as a threat or failure.

Self-confident people also demonstrate self-awareness. They understand their abilities and are less likely to overextend by, for example, making assignments longer than necessary. They know, too, when to seek help. They factor in the risks involved. They don't request challenges they know they can't handle on their own. They'll utilize their strengths.

She was a mid-level employee and was invited to a strategy meeting with her company's top executives. Though she was the lowest-ranking person in the room, she did not just sit and listen quietly. She had faith in her abilities and was convinced that she could contribute with ideas on the company's strategy. The same time, she was self-aware enough to not go where she knew she was weak.

My research indicates that senior executives do not generally give self-awareness the credit it deserves when they seek potential leaders. A lack of respect shown to employees who admit their shortcomings is a common problem. Such people are "not tough enough" to lead others.

It's the opposite. To begin with, people admire and respect candor. Leaders must also weigh-in on important decisions which involve assessing one's own and those of others' abilities. Can we get a competitor? Six months will do, won't it? Self-aware people are better able to give assessments to their respective organizations.

Self-Regulation

bio-based emotions The best we can do is minimize their influence. Self-regulation, which is like an ongoing inner conversation, frees us from being prisoners of our feelings. People who engage in conversations like this feel sad and emotional, but they can work through these feelings to help others.

Imagine an executive who watched his employees present a botched analysis to the company's board of directors. Following the downbeat mood, the executive might be tempted to beat on the table or throw a chair. he could start yelling at the group Or he might glare silently before walking off.

If he could self-regulate, he would choose a different approach. He'd only say what he needed to, and would stay away from careless criticism. Then he would consider the reasons for the failure. Is it due to laziness? Any mitigating factors? His function in the catastrophe? He laid out the consequences of the incident as well as his feelings after considering the questions. Then, he would describe the problem and a solution well-reasoned.

To be a leader, it is critical to self-regulate. In the first place, reasonable people have the capacity to establish a setting of trust and fairness. Politics and infighting are sharply reduced, and productivity is high in such an environment. Talented individuals who flock to the organization are less likely to consider leaving. A trickle-down effect applies to self-regulation as well. When the boss is well-known for her composed approach, no one wants to be known as a hothead. Frequent or severe negative moods at the top means that fewer people in the organization are experiencing negative moods.

Also, self-regulation is important because it benefits the team's performance. It is universally accepted that business today is plagued by ambiguity and rapid change. Mergers and acquisitions are common. We have seen tremendous transformations in our work since the introduction of new technology. Mastering one's emotions enables one to smoothly cope with changing circumstances. When a new program is announced, people are able to wait before reacting. Instead, they are able to keep an open mind, research the program, and hear the executives' explanations. as the project proceeds, these people will be able to keep pace.

They lead by example at times. The scenario of a manager working at a large manufacturing company should be considered. She had used a certain piece of software for five years like her colleagues. The program dictated how she did things, including the collection and reporting of data, as well as how she thought about the company's overall strategy. As part of the implementation of a new program, executives informed everyone that the way information was gathered and assessed in the company would be completely altered. Despite the complaints of many employees, the manager began to consider the advantages of the new program and was ultimately convinced of its potential to increase performance. She was eager to attend training sessions, and because of that, she was promoted to run several divisions. She also used new technology in a more effective way than her colleagues, and as a result, she was promoted.

I want to encourage leaders to strengthen their personal integrity, as well as the integrity of their organization, even further. Impulsive behavior often causes the various negative developments that take place in companies. People generally don't plan to grossly overreport profits, inflate expense accounts, utilize the till fraudulently, or misuse authority for personal gain. Opportunities, not temptations, appear. This is due to people with less willpower or self-control having greater susceptibility to peer pressure.

To contrast, the senior executive of a large food company displays opposite behaviors. The executive was very honest in his dealings with distributors at the local level. He frequently provided the distributors with a clear understanding of the company's pricing by laying out his cost structure in detail. This approach made it impossible for the executive to always hold firm in negotiations. At times, he felt the urge to boost profits by keeping costs hidden. He found that in the long term, countering that impulse made more sense. The way he was able to control his emotions in all of his relationships resulted in his cultivating long-term relationships with distributors that were beneficial to the company more than any financial gains he could have gained.

When emotional self-regulation is present, you will notice the following: a tendency for self-reflection and thoughtfulness; the ability to handle change and ambiguity; and a sense of integrity, meaning that you have the ability to say "no" to impulsive desires.

While self-awareness often goes unnoticed, self-regulation often gets overlooked. Celiac disease is caused by exposure to gluten, a protein found in wheat, barley, and rye. Many people with a fiery temper are considered leaders because of their explosive behavior. However, when people like this make it to the top, their impulsive behavior often undermines their success. To date, I've found that displays of extreme emotion have never proven to be a good motivator for leadership.

Motivation

Leaders who are effective almost universally share two characteristics: motivation and ability. They are driven to achieve further than they think possible—not only for themselves, but for everybody else as well. Here, the crucially important term is "achieve." A large salary or the status that comes from being part of a prestigious company are motivating factors for many people. These individuals, on the other hand, have a compelling motivation to achieve for the sake of achievement.

When it comes to identifying leaders, do you search for those who are motivated by the desire to succeed, not financial rewards? The first sign is a passionate, joyful interest in a project: people seek out projects that offer opportunities for personal growth, find delight in learning, and take great pride in a job well done. They are also indefatigable, constantly improving their methods. This type of energy produces people who feel restless about the status quo. They ask why things are done a certain way because they are tenacious when it comes to understanding why. They are never reluctant to try something new when it comes to their work.

For example, a cosmetics company manager complained because it took two weeks for results from the field to reach him. After a long search, he finally found an automated phone system that beeps every salesperson in his company at 5:00 pm every day. After providing their numbers, an automated message sent them a message asking if they'd done any sales that day. With the implementation of the new system, the time to receive feedback on sales results was reduced from weeks to hours.

As you can see, two other common personality traits drive people to achieve their goals. They constantly raise the performance standard, and they keep track of the numbers. Prioritize increasing the number of great performances over everything else. People who have high levels of motivation are likely to request that their superiors "extend" them during performance reviews. To begin with, if an employee has self-awareness and motivates herself, she'll identify her limitations; however, she will not settle for too-easy objectives.

As a result, those who are driven to improve in some way will want a way to track their own progress, as well as the progress of their team and their company. Individuals with low achievement motivation are more likely to have a lack of clarity or focus when it comes to results, while those with high achievement motivation will focus on things like profitability or market share. In the morning, I learned about a financial manager who opens and closes his day using the Internet, watching his stock fund's performance relative to four industry-set benchmarks.

People with a strong desire to succeed remain optimistic even when they are behind. In this instance, one's own self-discipline works in tandem with achievement motivation to help overcome feelings of disappointment and frustration after a setback or failure. This case serves as an example of a large investment company's portfolio manager. Three consecutive quarters of fund underperformance left three large institutional clients seeking new investment options.

A different group of executives might have attributed the downturn to outside factors, while a different group of executives would have perceived the downturn as evidence of personal failure. He saw an opportunity to show that he could lead a turnaround, and this portfolio manager saw that opportunity. After two years in the position, she felt that promotion was "the best thing that ever happened to me," as she was able to learn and grow greatly as a result.

Another piece of evidence executive leaders should look for is commitment to the organization. People who enjoy their jobs because of the activities they perform usually feel attached to the companies that facilitate those activities. Employees who are highly committed to their work are likely to stay with their organizations when they are being aggressively sought by headhunters, even if they are being offered large sums of money.

When people are motivated to accomplish something, that motivation is translated into leadership. You will be setting the standard for the entire organization when you have the authority to do so. Like this, a drive to outdo your own expectations and a desire to stay on top can be contagious. In many instances, leaders who possess these characteristics are able to build teams of managers who have the same characteristics. In addition, leaders require an abundance of optimism and organizational commitment. If you attempt to run a company without those qualities, you'll be sure to fail.

Empathy

Empathy is one of the most easily recognizable aspects of emotional intelligence. Being sensitive to other people is something we have all experienced. And we've all been shocked when we felt no empathy from an uncaring mentor or supervisor. We don't generally hear people praised or rewarded for their empathy in business. It sounds unprofessional, like it doesn't belong in a difficult market.

On the other hand, empathy is not a meaningless mushiness of “I'm fine, you're fine.” But a leader is someone who understands and doesn't confuse their emotions with those of others and try to please everyone. That would be the worst of all possible outcomes—it would prevent action. Rather, empathy means making thoughtful decisions that take employees' feelings into consideration, in addition to other factors.

While there are many examples of empathy in action, this event may serve as an excellent illustration. Two of the country's largest brokerage firms merged, which resulted in redundant jobs across all their divisions. He had a long speech to all his employees, emphasizing the large number of workers who would soon be laid off. The head of another department spoke to his employees in a different manner. Rather than try to skirt the issue, he openly discussed his worry and confusion, and he promised to keep everyone updated and treat everyone fairly.

The differentiating factor between these two bosses was their capacity for empathy. In addition, the first manager was too concerned about his own future to take the rest of his anxiety-filled colleagues into consideration. The second could tell just by looking at his audience what they were worried about, and he put his words to rest their fears. It shouldn't be any surprise that the first manager noted an overall decrease in morale as many talented employees left. The second manager maintained leadership while also keeping the employees he liked and allowing his division to remain as productive as before.

As a component of leadership, understanding how to promote empathy in a company's workforce is absolutely critical today because of the rise of teams, the acceleration of globalization, and the demand to retain employees.

The task of leading a team is one that should be given considerable thought. Teams are incubators of volatile feelings, as everyone who has ever been a part of one can attest. They are often tasked with arriving at a consensus, which is much more difficult with two people than a larger group. Alliances form even in groups as small as four or five people, and conflicts and competing agendas arise. A team leader must be able to comprehend and communicate the various viewpoints of his or her teammates.

The title of this role, as well as the company where she was hired, described what this successful marketing manager at a large information technology company was able to do when she was assigned to lead a troubled team. The group was deeply stressed, unable to complete work due to missing deadlines. Many of the members were upset. In order for the group to really be of use to the company, tinkering with procedures wasn't enough.

So the manager proceeded to make several moves. During several one-on-one sessions, she focused on listening to everyone in the group, particularly to find out what the group members felt frustrated about, how they rated their colleagues, and whether they felt they had been overlooked. And after doing so, she lead the team in a way that created cohesion: Encouraging open discussions of frustrations while helping those in meetings to raise constructive concerns helped bind the team together. In other words, she was able to see things from her teammates' point of view. As a result, the results of the collaboration were multiplied, not just for the members, but also for the clients, because the team was called on for support by an array of internal clients.

Because of globalization, empathy for business leaders is a more important quality today. Cultural conversations may easily lead to misunderstandings and mistakes. An antidote to empathy is needed. Able to interpret the subtleties in body language, people who have it are in tune with subtle communications. Beyond that, they understand that there are cultural and ethnic differences, but also have a deep understanding of their importance.

One of the team members had just done presentation work with a potential Japanese client, and this consultant considered the case. Team members were used to dealing with queries after proposing something, but this time the team was met with silence. As other members of the team looked on in silence, ready to depart, others believed they were being shunned. The lead consultant made a hand gesture to instruct them to cease. He knew little about Japanese culture, but he could tell from the client's face and posture that he was receiving not rejection but deep consideration. In the end, he was correct: The client gave the consulting firm the job when they finally spoke.

The retention of talent, especially in today's information economy, is heavily reliant on human understanding and empathy. Even in the past, leaders have always needed empathy to cultivate and retain quality employees, but the current workplace environment demands that leaders display empathy even more than before. As people who leave a company, they not only take their own knowledge, but also the company's knowledge.

Mentoring and coaching come into play here. The positive effects of coaching and mentoring on both employee performance and job satisfaction have been demonstrated over and over again. In order for coaching and mentoring to work, the relationship between the coach and the mentee is critical. Elite coaches and mentors are in tune with the thoughts and feelings of those they serve. They can perceive the correct method of giving effective feedback. They know the appropriate times to press for better results and when to refrain. By motivating their protégés in a particular way, they exhibit empathy in action.

We're hearing this refrain now, so let me say it again: Empathy does not receive much respect in business. Many are skeptical as to how a leader is able to make a difficult decision when they are “feeling” for everyone who will be affected. But those who are emotionally intelligent do more than just feel compassion for those around them; they use their understanding to better their companies in small but crucial ways.

Emotional and interpersonal proficiency

Self-management skills are part of the first three components of emotional intelligence. The final two, emotional intelligence and social skill, deal with people's ability to work cooperatively with others. Social skill is not as simple as it sounds as part of emotional intelligence. There is a distinction between being warm and being nice. It's not just about friendliness; people with a high level of social skill are rarely mean-spirited. Instead, social skill is characterized by kindness with a purpose, such as getting agreement on a new marketing strategy or generating enthusiasm for a new product.

Those who are skilled in socializing have a wide range of acquaintances, and they have an uncanny ability to establish rapport with a variety of people. While it's true that they socialize throughout the day, it means they base their daily activities on the assumption that nothing significant happens when people are working on their own. They have a network in place beforehand so that when the time to act comes, they are ready.

The end result of emotional intelligence is social skills. Individuals who can understand and control their own emotions as well as being able to empathize with the feelings of others are highly effective at managing relationships. Even a sense of purpose adds to a person's social skills. Those who are driven to succeed are also generally optimistic, even when things do not go their way. When people are happy, their “glow” radiates to all the other people in their lives. They are extremely popular, and there is a good reason for that.

For this reason, social skills are apparent on the job in numerous ways that will have now-familiar aspects. People who are skilled at managing teams, such as empathetic individuals, show it by utilizing their social skills. This is consistent with them being great persuaders, who have characteristics of self-awareness, self-regulation, and empathy in one package. If someone possesses those skills, then effective persuaders know when to make an emotional appeal, such as, and when a rational appeal will be more effective. Having work you can point to and say, "See? I was working on this" has a big motivational effect on other people. It motivates them to help you find solutions, because they see you are dedicated to your work.

In contrast to emotional intelligence, social skills reveal themselves in ways that the other emotional intelligence components do not. It is possible for people who are good at socializing to appear not to be working when they are at work. When it comes to their day-to-day jobs, it appears as though they are having a casual conversation while idly schmoozing (chatting in the hallways with colleagues or joking around with people who are not affiliated with their “real” jobs). Socially-skilled individuals, however, disagree with the notion of limiting the number of relationships on arbitrary grounds. They network extensively as they know this is a time of constant change, and one day they may need the help of the people they just met today.

For example, an executive in the strategy department of a global computer manufacturer may be the case where creative works well. Over the course of 1993, he came to believe that the company's future was inextricably linked to the Internet. As the year progressed, he found kindred spirits, people with similar interests, and used his social skill to assemble a virtual community that included people from all levels, divisions, and nations. Then, he assembled this "informal" team to put up a corporate Web site, making it the first one of its kind by a major corporation. He was on his own, unapproved by management, and for the purposes of participation in an annual industry convention, he signed up the company on his own initiative. By utilizing his friends and connecting with various divisions, he recruited over 50 employees from a dozen different units to attend the conference as representatives of the company.

The executive's team began laying the groundwork for the company's first Internet division, and he was elevated to the role of executive in charge of it. In order to reach that goal, the executive disregarded the boundaries of conventional business practice, creating and maintaining connections with everyone within the company.

Do most companies consider social skill a key leadership capability? When compared with other components of emotional intelligence, the answer is definitely yes. It seems as though people intuitively understand that leaders need to successfully manage relationships. A leader is not an island. Remember: Leaders' responsibility is to enable others to get the job done, and social skill allows that to happen. To lack empathy is the same as never having it in the first place. For a leader to have any motivational effect, he must be able to inspire the people around him. In social interactions, having the emotional intelligence to understand and relate to people allows leaders to utilize their cognitive intelligence.

This makes no sense: IQ and technical ability are essential for effective leadership. While the recipe does not include emotional intelligence, it is incomplete without it. Emotional intelligence has been said to be a “nice to have” in business leaders for some time. We know now that these are ingredients that leaders "need to have" for maximum performance.

Because it can be learned, it is fortunate that emotional intelligence is advantageous. The process is far from simple. In order to succeed, it is necessary to have patience and, above all, to be dedicated. Emotional intelligence benefits the individual and the organization, and that is why it is worth the effort to develop it.

This article was originately published by Daniel Golemean in the January 2004 issue of Harvard Business Review.

Daniel Goleman, known for his writing on emotional intelligence, is a co-director of the Consortium for Research on Emotional Intelligence in Organizations at Rutgers University. Building Blocks of Emotional Intelligence is a 12-primer-set that helps readers gain a deeper understanding of each of the emotional intelligence competencies. His online learning platform, Emotional Intelligence Training Programs, offers a full range of courses on each of the competencies. In addition to Primal Leadership: Unleashing the Power of Emotional Intelligence and Altered Traits: Science Reveals How Meditation Changes Your Mind, Brain, and Body, his other books include Primal Leadership: Unleashing the Power of Emotional Intelligence and Changing Traits: The Science of Meditation.