Gatts Consulting

Emotional Intelligence – Why it matters


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“CEOs are hired for their intellect and business expertise – and fired for their lack of emotional intelligence”

– Daniel Goleman

Emotional intelligence in leadership has garnered attention in recent years with numerous studies and references highlighting its importance. Studies by organizations such as the Harvard Business Review and the Center for Creative Leadership, consistently emphasize the significance of Emotional intelligence in leadership effectiveness. Emotional intelligence (EQ) is a crucial trait for leaders because it encompasses the ability to understand, manage, and leverage emotions effectively in oneself and others. 

In his classic bestseller, Emotional Intelligence: Why it matters more than IQ, Daniel Goleman shares five components that support why EQ is vital, especially in a post-COVID world. They are empathy, effective communication or social skills, self-awareness, self-regulation, and motivation. While not prescriptive, these components form a solid bedrock to help leaders develop this important trait.

Here’s a breakdown of each component with real examples of how leaders can use them to foster a healthy workplace environment:

  1. Empathy: Empathy refers to the ability to understand and share the feelings of others. Leaders who demonstrate empathy create a supportive and inclusive work environment. By actively listening to their team members, leaders show genuine concern for their well-being. This fosters trust, cooperation, and a sense of belonging among employees. Alan Mulally, the former CEO of Ford, successfully led the company’s turnaround by focusing on open communication, collaboration, and emotional engagement.
  2. Effective Communication/Social Skills: Being an effective communicator goes beyond having the right words to say. It involves the ability to convey information clearly, listen actively, and build positive relationships. Leaders who are effective communicators promote open dialogue, collaboration, and a sense of camaraderie among their teams. They know what to say, how to say it, when to say it, who to say it to, and where to say it. By considering others’ perspectives and managing emotions effectively, they can defuse tense situations and maintain a harmonious work environment. Indra Nooyi, the former CEO of PepsiCo, demonstrated this by encouraging open dialogue and resolving conflicts constructively.
  3. Self-Awareness: Self-awareness refers to understanding one’s emotions, strengths, weaknesses, and their impact on others. Leaders who possess self-awareness are mindful of their behavior, acknowledge their emotions, and take responsibility for their actions. By openly acknowledging their mistakes and seeking feedback, these leaders create a culture of continuous learning, personal growth, and a strong sense of trust among the team.
  4. Self-Regulation: Self-regulation involves managing and controlling one’s emotions and impulses, especially in stressful situations. Leaders who demonstrate self-regulation know how to remain calm and composed, even during challenging times. They model emotional stability and resilience, which inspires their team members to handle pressure effectively. In today’s rapidly changing and unpredictable business environment, the ability of leaders to self-regulate is critical in helping their teams cope with uncertainty, inspiring them to embrace change and adapt quickly.
  5. Motivation: Motivation is the drive and passion to achieve goals and inspire others. Leaders who exhibit high motivation motivate and energize their teams, leading to increased productivity and job satisfaction. They inspire others through their enthusiasm, optimism, and ability to communicate a compelling vision. These leaders create a positive work climate, fostering engagement and productivity. Elon Musk, CEO of Tesla and SpaceX, demonstrates this ability by infusing passion into his projects and inspiring his teams to push boundaries and achieve ambitious goals.

While having emotional intelligence alone does not guarantee success as a leader, it is a critical trait that distinguishes exceptional leaders from average leaders.