Using The Emotional Quotient: Distributor s Guide
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1 Using The Emotional Quotient: Distributor s Guide If you have questions: Izzy Justice EQmentor Inc (main) (direct) ijustice@eqmentor.com
2 The objective of this guide is to support the TTI distributor to interpret the results of the EQ assessment so that the results can be leveraged to enhance the value proposition that the distributor brings to his/her clients. What is Emotional Intelligence? Emotional Intelligence (EQ) is the ability to sense, understand and effectively apply the power and acumen of emotions to facilitate high levels of collaboration and productivity. It is the foundational competency every leader needs to grow. Emotional intelligence, in essence, is the ability to effectively manage the process shown below. The basic process shown below is physiological in nature and there is no sense in trying to control it. However, managing the process effectively brings an exponential competitive advantage to both individuals and organizations. Managing the process with EQ is the foundational competency that drives performance metrics, independent of IQ and technical skills. As shown in the image below, emotions precede actions when one is happy, one smiles. It is not the other way around - one does not smile and become happy. Therefore, focus on improving actions, as well-intentioned as it may be, can be all for naught if not coupled with a focus on improving EQ because it is emotional intelligence that drives our actions. Instead, to deal with change effectively and become more adaptable, people need to develop their emotional intelligence (EQ) to grow their potential. We are a product of our daily experiences. Each experience yields a set of emotions which ultimately drives our cognitions and our actions. The extent to which an experience will affect our emotions is determined by our personality and our work environment. Distributor s Guide 2
3 The ultimate goal of any learning (starts with assessments) is to make better decisions. In the model below, note how EQ is positioned physiologically (not conceptually) at the base of all decision-making, skills, and actions. Emotional intelligence is the foundational competency that drives our actions, our KSA s, our performance in our role, and ultimately, the effectiveness of our decision-making. Distributor s Guide 3
4 The Value of Emotional Intelligence The value of EQ can be illustrated by the following example. Each day we experience approximately 20,000 moments. A moment is defined as a few seconds during which our brain records an experience. The quality of our days, and the quality of our interactions with others, is determined by how our brains recognize and categorize our moments as positive, negative, or neutral. Rarely do we remember neutral moments. But positive and negative moments have an effect on us. According to research, the magic ratio of positive-to-negative moments is 5:1. This means that five positive experiences are needed to mitigate one negative experience. It is worth noting that this ratio has been found to predict, with nearly 100% accuracy, everything from workplace performance to divorce. Those with higher EQ have more of an ability to recognize that this 5:1 ratio exists and exerts a strong influence on relationships with others. Research at Gallup has shown that only 25% of employees are fully engaged in their work. The cost of disengagement has been estimated to be so pervasive that it costs an organization, on average $5,000 per employee, conservatively. Research on turnover shows that attrition and its predecessor, disengagement are caused by negative interpersonal actions. The leaders at an organization set the tone and culture for interpersonal interaction. The leader s EQ affects their team s emotions and actions. Such emotional contagion travels down the chain in an organization, ultimately affecting your customer s emotions and buying behaviors to affect your bottom line. The chart below represents a conservative summary of just a fraction of such costs for an organization of 10,000 with a turnover rate of 10 percent whose employees have an average salary of $40,000: Factor Rate Math Cost Per Year Attrition $15,000 per employee 10%(10,000)x15000 $15,000,000 Disengagement $5,000 per employee 75%(10,000)x5,000 $37,500,000 $52,500,000 Distributor s Guide 4
5 The leaders at an organization set the tone and culture for interpersonal interaction. The leader s EQ affects their team s emotions and actions. Such emotional contagion travels down the chain in an organization, ultimately affecting your customer s emotions and buying behaviors to affect your bottom line. Distributor s Guide 5
6 The Emotional Intelligence Business Case At L Oreal, employees selected on the basis of certain emotional competencies sold $91,370 more than salespeople selected with the company s old selection procedure did, for a net revenue increase of $2,558,360. Employees selected on the basis of emotional competence also had 63% less turnover during the first year than those selected in the typical way. ~Spencer & Spencer, Competence at Work: Models for Superior Performance After supervisors in a manufacturing plant received training in emotional competencies, such as how to listen better and help employees resolve problems on their own, lost-time accidents were reduced by 50%, formal grievances were reduced from an average of 15 per year to 3 per year, and the plant exceeded productivity goals by $250,000. ~Psuric & Byham, The New Look of Behavior Modeling The value of Emotional Intelligence increases with job complexity: Low Clerks, machine operators, High EQ 3x more productive Medium Sales clerks, mechanics High EQ 12x more productive High Doctors, consultants High EQ 127x more productive Distributor s Guide 6
7 Financial advisors at American Express whose managers completed the Emotional Competence training program were compared to an equal number whose managers had not. During the year following training, the advisors of trained managers grew their businesses by 18.1%, compared to 16.2% for those whose managers were untrained. Experienced partners in a multinational consulting firm were assessed on the EQ competencies plus three others. Partners who scored above the median on 9 or more of the 20 competencies delivered $1.2 million more profit from their accounts than did other partners a 139% incremental gain. ~Boyatzis, Presentation to the Linkage Conference on Emotional Intelligence Behavioral Improvements Following Training: Traditional training EQ training - intrapersonal EQ training interpersonal Immediately 35% 47% 75% 1-3 months after 10% 47% 75% 2 years after 10% 47% 75% Distributor s Guide 7
8 Enhancing Emotional Intelligence Identify strengths and areas for improvement tie goals to specific actions implementable in the workplace Often it is easier to develop a strength than to compensate for a deficiency. Determine what will be most beneficial for the person s role, and develop that aspect. Identify challenges/roadblocks that stand in the way of goal achievement. Think of ways they can be overcome. The only effective way to enhance EQ is to learn from someone who has walked a similar path, over an extended period of time, in an emotionally safe environment. Emotional Intelligence Quotes Adaptability will replace productivity as the key measure of organizational performance in the coming years, adapting to clients, markets, technology, the workforce, and so forth. -Kevin Kelly 90% of the difference between star performers and average performers in senior leadership positions is EQ. -Daniel Goleman Optimism level is a better predictor of freshman GPA than both high school grades and SAT scores. -University of Pennsylvania Emotional intelligence isn t a luxury tool you can dispense with in tough times. It s a basic tool that, deployed with finesse, is the key to professional success. -The Harvard Business Review, April 2003 CEOs are hired for their intellect and business expertise and fired for a lack of emotional intelligence. -Daniel Goleman Distributor s Guide 8
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