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IQ and technical skills are important, but emotional intelligence is the sine qua non of leadership. What Makes a i Leader? BY DANIEL GOLEMAN E (VERY BUSINESSPERSON knows a story about a highly intelligent, highly skilled executive who was promoted into a leader- ship position only to fail at the joh. And they also know a story about someone with solid-but not extraordinary-intellectual abilities and technical skills who was promoted into a similar position and then soared. Such anecdotes support the widespread belief that identifying individuals with the "right stuff" to be leaders is more art than science. After all, the personal styles of superb leaders vary: some lead- ers are subdued and analytical; others shout their manifestos from the mountaintops. And just as important, different situations call for different Daniel Goleman is the author of Emotional Intelligence (Ban- tam, i99s) and Working with Emotional Intelligence (Bantam. 1998}. He is cocbairman of the Consortium for Research on Emotional Intelligence in Organizations, which is based at Rut- gers University's Graduate School of Applied and Professional Psychology in Piscataway. New Jersey. He can be reached at [email protected]. ARTWORK BY CRAIG FRAZIER 93

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Page 1: IQ and technical skills are important, but emotional What Makes … · 2017-09-29 · IQ and technical skills are important, but emotional intelligence is the sine qua non of leadership

IQ and technical skills are important, but emotionalintelligence is the sine qua non of leadership.

What Makes ai

Leader?BY DANIEL GOLEMAN

E(VERY BUSINESSPERSONknows a story about a highly intelligent, highlyskilled executive who was promoted into a leader-ship position only to fail at the joh. And they alsoknow a story about someone with solid-but notextraordinary-intellectual abilities and technicalskills who was promoted into a similar positionand then soared.

Such anecdotes support the widespread beliefthat identifying individuals with the "right stuff"to be leaders is more art than science. After all, thepersonal styles of superb leaders vary: some lead-ers are subdued and analytical; others shout theirmanifestos from the mountaintops. And just asimportant, different situations call for different

Daniel Goleman is the author of Emotional Intelligence (Ban-tam, i99s) and Working with Emotional Intelligence (Bantam.1998}. He is cocbairman of the Consortium for Research onEmotional Intelligence in Organizations, which is based at Rut-gers University's Graduate School of Applied and ProfessionalPsychology in Piscataway. New Jersey. He can be reached [email protected].

ARTWORK BY CRAIG FRAZIER 93

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WHAT MAKES A LEADER?

types of leadership. Most mergers need a sensitivenegotiator at the helm, whereas many turnaroundsrequire a more forceful authority.

I haye found, however, that the most effectiveleaders are alike in one crucial way: they all have ahigh degree of what has come to he known as emo-tional intelligence. It's not that IQ and technicalskills are irrelevant. They do matter, but mainly as"threshold capahilities"; that is, they are the entry-level requirements for executive positions. But myresearch, along with other recent studies, clearlyshows that emotional intelligenee is the sine quanon of leadership. Without it, aperson can have the hest trainingin the world, an incisive, analyti-cal mind, and an endless supplyof smart ideas, but he still won'tmake a great leader.

In the course of the past year,my colleagues and I have focusedon how emotional intelligenceoperates at work. We have exam-ined the relationship betweenemotional intelligence and effec-tive performance, especially inleaders. And we have observedhow emotional intelligenceshows itself on the job. How canyou tell if someone has highemotional intelligence, for exam-ple, and how can you recognize itin yourself? In the followingpages, we'll explore these questions, taking each ofthe components of emotional intelligence-self-awareness, self-regulation, motivation, empathy,and social skill - in turn.

Evaluating Emotional IntelligenceMost large companies today have employed trainedpsychologists to develop what are known as "com-petency models" to aid them in identifying, train-ing, and promoting likely stars in the leadershipfirmament. The psychologists have also developedsuch models for lower-level positions. And in re-cent years, I have analyzed competency modelsfrom r88 companies, most of which were large andglobal and included the likes of Lucent Technolo-gies, British Airways, and Credit Suisse.

In carrying out this work, my objective was todetermine which personal capahilities drove out-standing performance within these organizations,and to what degree they did so. I grouped capabili-ties into three categories: purely technical skillslike accounting and business planning; cognitive

Effectiveleaders are alikein one crucialway: they allhave a high

degree ofemotional

intelligence.

abilities like analytical reasoning; and competen-cies demonstrating emotional intelligence such asthe ahility to work with others and effectiveness inleading change.

To create some of the competency models, psy-chologists asked senior managers at the companiesto identify the capabilities that typified the organi-zation's most outstanding leaders. To create othermodels, the psychologists used objective criteriasuch as a division's profitability to differentiate thestar performers at senior levels within their organi-zations from the average ones. Those individuals

were then extensively interviewedand tested, and their capabilitieswere compared. This process re-sulted in the creation of lists ofingredients for highly effectiveleaders. The lists ranged in lengthfrom 7 to 15 items and includedsuch ingredients as initiative andstrategic vision.

When I analyzed all this data,I found dramatic results. To besure, intellect was a driver of out-standing performance. Cognitiveskills such as big-picture think-ing and long-term vision wereparticularly important. But whenI calculated the ratio of technicalskills, IQ, and emotional intelli-gence as ingredients of excellentperformance, emotional intelli-

gence proved to he twice as important as tbe othersfor jobs at all levels.

Moreover, my analysis showed that emotionalintelligence played an increasingly important roleat the highest levels of the company, where differ-ences in teehnical skills are of negligible impor-tance. In other words, the higher the rank of a per-son considered to be a star performer, the moreemotional intelligenee capabilities showed up asthe reason for his or her effectiveness. When I com-pared star performers with average ones in seniorleadership positions, nearly 90% of the differencein their profiles was attributahle to emotional intel-ligence factors rather than cognitive abilities.

Other researchers have confirmed that emotionalintelligenee not only distinguishes outstandingleaders but can also be linked to strong perfor-mance. The findings of the late David McClelland,the renowned researcher in human and organiza-tional behavior, are a good example. In a 1996 studyof a global food and beverage company, McClellandfound that when senior managers had a criticalmass of emotional intelligence capabilities, their

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WHAT MAKES A LEADER?

The Five Components of Emotional Intelligence at Work

Self-Awareness

Self-Regulation

Motivation

.Social Skill

Definition

the ability to recognize and understandyour moods, emotions, and drives, aswell as their effect on others

the ability to control or redirectdisruptive impulses and moods

the propensity to suspend judgment-to think before acting

a passion to v̂ fork for reasons that gobeyond money or status

a propensity to pursue goals withenergy and persistence

the ability to understand the emotionalmakeup of other people

skill in treating people according totheir emotional reactions

proficiency in managing relationshipsand building networks

an ability to find common ground andbuild rapport

Hallmarks

self-confidence

realistic self-assessment

self-deprecating sense of humor

trustworthiness and integrity

comfort with ambiguity

openness to change

strong drive to achieve

optimism, even in the face of failure

organizational commitment

expertise in building and retainingtalent

cross-cultural sensitivity

service to clients and customers

effectiveness in leading change

persuasiveness

expertise in building and leading teams

divisions outperformed yearly earnings goals by20%. Meanwhile, division leaders without thatcritical mass underpcrformed by almost the sameamount. McClcUand's findings, interestingly, heldas true in the company's U.S. divisions as in its divi-sions in Asia and Europe.

In short, the numbers are beginning to tell us apersuasive story about the link between a compa-ny's success and the emotional intelligence of itsleaders. And just as important, research is alsodemonstrating that people can, if they take the

right approach, develop their emotional intelli-gence. (See the insert "Can Emotional IntelligenceBe Learned?")

Self-AwarenessSelf-awareness is the first component of emotionalintelligence-which makes sense when one con-siders that the Delphic oracle gave the advice to"know thyself" thousands of years ago. Self-aware-ness means having a deep understanding of one's

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emotions, strengths, weaknesses, needs, and drives.People with strong self-awareness are neither overlycritical nor unrealistically hopeful. Rather, they arehonest -with themselves and with others.

People who have a high degree of self-awarenessrecognize how their feelings affect them, other peo-ple, and their job performance. Thus a self-awareperson who knows that tight deadlines bring outthe worst in him plans his time carefully and getshis work done well in advance. Another personwith high self-awareness will be able to work witha demanding client. She will understand theclient's impact on her moods and the deeper rea-sons for her frustration. "Their trivial demandstake us away from the real workthat needs to be done," she mightexplain. And she will go one stepfurther and turn her anger intosomething constructive.

Self-awareness extends to aperson's understanding of his orher values and goals. Someonewho is highly self-aware knowswhere he is headed and why; so,for example, he will be able to befirm in turning down a job offerthat is tempting financially butdoes not fit with his principles orlong-term goals. A person wholacks self-awareness is apt tomake decisions that bring on in-ner turmoil by treading on buriedvalues. "The money looked goodso I signed on," someone mightsay two years into a job, "but the work means so lit-tle to me that I'm constantly bored." The decisionsof self-aware people mesh with their values; conse-quently, they often find work to be energizing.

How can one recognize self-awareness? First andforemost, it shows itself as candor and an ability toassess oneself realistically. People with high self-awareness are able to speak accurately and openly -although not necessarily effusively or confession-ally-about their emotions and the impact theyhave on their work. For instanee, one manager Iknow of was skeptical about a new personal-shopperservice that her company, a major department-storechain, was about to introduce. Without promptingfrom her team or her boss, she offered them an ex-planation: "It's hard for me to get behind the rolloutof this service," she admitted, "because I reallywanted to run the project, but I wasn't selected.Bear with me while I deal with that." The managerdid indeed examine her feelings; a week later, shewas supporting the project fully.

Self-awarejob candidateswill be frank

in admitting tofailure-and willoften tell their

tales with asmile.

Such self-knowledge often shows itself in thehiring process. Ask a candidate to describe a timehe got carried away by his feelings and did some-thing he later regretted. Self-aware candidates willbe frank in admitting to failure-and will often telltheir tales with a smile. One of the hallmarks ofself-awareness is a self-deprecating sense of humor.

Self-awareness can also be identified during per-formance reviews. Self-aware people know-andare comfortable talking about-their limitationsand strengths, and they often demonstrate a thirstfor constructive criticism. By contrast, people withlow self-awareness interpret the message that theyneed to improve as a threat or a sign of failure.

Self-aware people can also berecognized hy their self-eonfi-denee. They have a firm grasp oftheir capabilities and are lesslikely to set themselves up to failby, for example, overstretchingon assignments. They know, too,when to ask for help. And therisks they take on the job are cal-culated. They won't ask for achallenge that they know theycan't handle alone. They'll playto their strengths.

Consider the actions of a mid-level employee who was invitedto sit in on a strategy meetingwith her company's top execu-tives. Although she was the mostjunior person in the room, she didnot sit there quietly, listening in

awestruck or fearful silence. She knew she had ahead for clear logic and the skill to present ideaspersuasively, and she offered cogent suggestionsabout the company's strategy. At the same time,her self-awareness stopped her from wandering intoterritory where she knew she was weak.

Despite the value of having self-aware people inthe workplace, my research indicates that seniorexeeutives don't often give self-awareness the creditit deserves when they look for potential leaders.Many exeeutives mistake candor about feelings for"wimpiness" and fail to give due respect to employ-ees who openly acknowledge their shortcomings.Such people are too readily dismissed as "not toughenough" to lead others.

In fact, the opposite is true. In the first place, peo-ple generally admire and respect candor. Further,leaders are constantly required to make judgmentcalls that require a candid assessment of capa-bilities-their own and those of others. Do we havethe management expertise to acquire a competitor?

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Can Emotional Intelligence Be Learned?

For ages, people have debated if leaders are born ormade. So too goes the debate about emotional intel-ligence. Are people born with certain levels of em-pathy, for example, or do they acquire empathy as aresult ot life's experiences? The answer is both. Scien-tific inquiry strongly suggests that there is a geneticcomponent to emotional intelligence. Psychologicaland developmental research indicates that nurtureplays a role as well. How much of each perhaps willnever be known, but research and practice clearlydemonstrate that emotional intelligence can belearned.

One thing is certain; emotional intelligence in-creases with age. There is an old-fashioned word forthe phenomenon: maturity. Yet even with maturity,some people still need training to enhance their emo-tional intelligence. Unfortunately, far too many train-ing programs that intend to build leadership skills-including emotional intelligence - are a waste of timeand money. The problem is simple: they focus on thewrong part of the brain.

Emotional intelligence is born largely in the neuro-transmitters oi the brain's limbic system, whieh gov-erns feelings, impulses, and drives. Research indi-cates that the limbic system learns best throughmotivation, extended practice, and feedback. Com-pare this with the kind of learning that goes on in theneocortex, which governs analytical and technicalability. The neocortex grasps concepts and logic. It isthe part of the brain that figures out how to use a com-puter or make a sales call by reading a book. Not sur-prisingly-hut mistakenly-it is also the part of thebrain targeted hy most training programs aimed at en-haneing emotional intelligence. When sueh programstake, in effect, a neocortical approach, my researchwith the Consortium for Research on Emotional In-telligenee in Organizations has shown they can evenhave a negative impact on people's job performance.

To enhanee emotional intelligence^ organizationsmust refoeus their training to include the limbie sys-tem. They must help people break old behavioralhabits and establish new ones. That not only takesmuch more time than conventional training pro-grams, it also requires an individualized approach.

Imagine an executive who is thought to be low onempathy hy her colleagues. Part of that deficit showsitself as an inability to listen; she interrupts peopleand doesn't pay close attention to what they're say-ing. To fix the problem, the executive needs to be mo-tivated to change, and then she needs practice andfeedback from others in the company. A colleague or

eoaeh could be tapped to let the executive know whenshe has heen observed failing to listen. She wouldthen have to replay the ineident and give a better re-sponse; that is, demonstrate her ability to absorb whatothers are saying. And the executive could be directedto observe certain executives who listen well and tomimic their behavior.

With persistence and practice, such a process canlead to lasting results. I know one Wall Street execu-tive who sought to improve his empathy - specificallyhis ability to read people's reactions and see their per-spectives. Before beginning his quest, the executive'ssubordinates were terrified of working with him. Peo-ple even went so far as to hide bad news from him.Naturally, he was shocked when finally confrontedwith these facts. He went home and told his family-hut they only confirmed what he had heard at work,When their opinions on any given suhject did notmesh with his, they, too, were frightened of him.

Enlisting the help of a coach, the executive went towork to heighten his empathy through practice andfeedback. His first step was to take a vacation to a for-eign country where he did not speak the language.While there, he monitored his reactions to the unfa-miliar and his openness to people who were differentfrom him. When he returned home, humhled by hisweek abroad, the executive asked his coach to shadowhim for parts of the day, several times a week, in orderto critique how he treated people with new or differ-ent perspectives. At the same time, he consciouslyused on-the-job interactions as opportunities to prac-tice "hearing" ideas that differed from his. Finally, theexecutive had himself videotaped in meetings andasked those who worked for and with him to critiquehis ahility to acknowledge and understand the feel-ings of others. It took several months, but the execu-tive's emotional intelligence did ultimately rise, andthe improvement was reflected in his overall perfor-mance on the joh.

It's important to emphasize that building one'semotional intelligence cannot-will not-happenwithout sincere desire and concerted effort. A hriefseminar won't help; nor can one huy a how-to manual.It is much harder to learn to empathize-to internal-ize empathy as a natural response to people - than it isto become adept at regression analysis. But it can bedone. "Nothing great was ever achieved without en-thusiasm," wrote Ralph Waldo Emerstm. If your goalis to become a real leader, these words can serve as aguidepost in your efforts to develop high emotionalintelligence.

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Can we launch a new product within six months?People who assess themselves honestly-that is,self-aware people-are well suited to do the samefor the organizations they run.

Self-RegulationBiological impulses drive our emotions. We cannotdo away with them-but we ean do much to man-age them. Self-regulation, which is like an ongoinginner conversation, is the component of emotionalintelligence that frees us from being prisoners ofour feelings. People engaged in such a conversationfeel bad moods and emotional impulses just aseveryone else does, but they findways to control them and even tochannel them in useful ways.

Imagine an executive who hasjust watched a team of his em-ployees present a botched analy-sis to the company's board ofdirectors. In the gloom that fol-lows, the executive might findhimself tempted to pound on thetable in anger or kick over a chair.He eould leap up and scream atthe group. Or he might maintaina grim silence, glaring at every-one before stalking off.

But if he had a gift for self-regu-lation, he would choose a differ-ent approach. He would pick hiswords carefully, acknowledgingthe team's poor performancewithout rushing to any hasty judgment. He wouldthen step back to consider the reasons for the fail-ure. Are they personal-a lack of effort? Are thereany mitigating factors? What was his role in the de-bacle? After considering these questions, he wouldcall the team together, lay out the incident's conse-quences, and offer his feelings about it. He wouldthen present his analysis of the problem and a well-considered solution.

Why does self-regulation matter so much forleaders? First of all, people who are in control oftheir feelings and impulses - that is, people who arereasonable-are able to create an environment oftrust and fairness. In such an environment, politicsand infighting are sharply reduced and productivityis high. Talented people flock to the organizationand aren't tempted to leave. And self-regulation hasa trickle-down effect. No one wants to be known as ahothead when the boss is known for her calm ap-proach. Fewer bad moods at the top mean fewerthroughout the organization.

People whohave masteredtheir emotions

are able toroll with the

changes. Theydon't panic.

Second, self-regulation is important for competi-tive reasons. Everyone knows that business today isrife with ambiguity and change. Companies mergeand break apart regularly. Technology transformswork at a dizzying pace. People who have masteredtheir emotions are able to roll with the changes.When a new change program is announced, theydon't panic; instead, they are able to suspend judg-ment, seek out information, and listen to execu-tives explain the new program. As the initiativemoves forward, they are able to move with it.

Sometimes they even lead the way. Consider thecase of a manager at a large manufacturing com-pany. Like her colleagues, she had used a certain

software program for five years.The program drove how she col-lected and reported data and howshe thought about the company'sstrategy. One day, senior execu-tives announced that a new pro-gram was to be installed thatwould radically change how in-formation was gathered and as-sessed within the organization.While many people in the com-pany complained bitterly abouthow disruptive the change wouldbe, the manager mulled over thereasons for the new program andwas convinced of its potential toimprove performance. She eagerlyattended training sessions-someof her colleagues refused to doso - and was eventually promoted

to run several divisions, in part because she usedthe new technology so effectively.

I want to push tbe importanee of self-regulationto leadership even further and make the case that itenhances integrity, which is not only a personalvirtue but also an organizational strength. Many ofthe bad things that happen in companies are a func-tion of impulsive behavior. People rarely plan to ex-aggerate profits, pad expense accounts, dip into thetill, or abuse power for selfish ends. Instead, an op-portunity presents itself, and people with low im-pulse control just say yes.

By contrast, consider the behavior of the seniorexecutive at a large food company. The executivewas scrupulously honest in his negotiations withlocal distributors. He would routinely lay out hiscost structure in detail, tbereby giving the distribu-tors a realistic understanding of tbe company's pric-ing. This approach meant the executive couldn't al-ways drive a hard bargain. Now, on occasion, he feltthe urge to increase profits by withholding informa-

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tion ahout the company's costs. But he challengedthat impulse-he saw that it made more sense inthe long run to counteract it. His emotional self-regulation paid off in strong, lasting relationshipswith distributors that benefited the company morethan any short-term financial gains would have.

The signs of emotional self-regula-tion, therefore, are not hard to miss: apropensity for refiection and thought-fulness; comfort with ambiguity andchange; and integrity-an ahility to sayno to impulsive urges.

Like self-awareness, self-regulationoften does not get its due. People whocan master their emotions are some-times seen as cold fish-their consid-ered responses are taken as a lack ofpassion. People with fiery tempera-ments are frequently thought of as"classic" leaders-their outbursts areconsidered hallmarks of charisma andpower. But when such people make itto the top, their impulsiveness oftenworks against them. In my research,extreme displays of negative emotionhave never emerged as a driver of goodleadership.

MotivationIf there is one trait that virtually all ef-fective leaders have, it is motivation.They are driven to achieve beyond ex-pectations-their own and everyoneelse's. The key word here is achieve.Plenty of people are motivated by exter-nal factors such as a hig salary or thestatus that comes from having an im-pressive title or being part of a presti-gious company. By contrast, those withleadership potential are motivated by adeeply embedded desire to achieve for the sake ofachievement.

If you are looking for leaders, how can you iden-tify people who are motivated by the drive toachieve rather than hy external rewards? The firstsign is a passion for the work itself-such peopleseek out creative challenges, love to learn, andtake great pride in a job well done. They also dis-play an unflagging energy to do things better. Peo-ple with such energy often seem restless with thestatus quo. They are persistent with their ques-tions about why things are done one way ratherthan another; they are eager to explore new ap-proaches to their work.

A cosmetics company manager, for example,was frustrated that he had to wait two weeks to getsales results from people in the field. He finallytracked down an automated phone system thatwould beep each of his salespeople at 5 P.M. everyday. An automated message then prompted them

People who are in control of their feelings can tame their emo-tional impulses and redirect them In useful ways,

to punch in their numbers-how many calls andsales they had made that day. The system short-ened the feedback time on sales results from weeksto hours.

That story illustrates two other common traits ofpeople who are driven to achieve. They are foreverraising the performance bar, and they like to keepscore. Take the performance bar first. During per-formance reviews, people with high levels of motiva-tion migbt ask to be "stretched" by their superiors.Of course, an employee who combines self-aware-ness with internal motivation will recognize herlimits-but she won't settle for objectives thatseem too easy to fulfill.

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And it follows naturally that people who aredriven to do better also want a way of trackingprogress - their own, their team's, and their eom-pany's. Whereas people with low achievement mo-tivation are often fuzzy ahout results, those withhigh achievement motivation often keep seore hytracking sueh hard measures as profitability or mar-ket share. I know of a money manager who startsand ends his day on the Internet, gauging the perfor-mance of his stoek fund against four industry-sethenchmarks.

Interestingly, people with high motivation re-main optimistic even when the score is againstthem. In such eases, self-regulation combineswith achievement motivation to overcome thefrustration and depression that eome after a set-hack or failure. Take the case of an another portfo-lio manager at a large invest-ment company. After severalsuccessful years, her fund tum-bled for three consecutive quar-ters, leading three large insti-tutional clients to shift theirbusiness elsewhere.

Some executives would haveblamed the nosedive on cir-cumstances outside their con-trol; others might have seen thesetback as evidence of personalfailure. This portfolio manager,however, saw an opportunityto prove she could lead a turn-around. Two years later, whenshe was promoted to a very senior level in the com-pany, she described the experience as "the bestthing that ever happened to me; I learned so muchfrom it."

Executives trying to recognize high levels ofachievement motivation in their people can lookfor one last piece of evidence: commitment to theorganization. When people love their joh for thework itself, they often feel committed to the orga-nizations that make that work possible. Commit-ted employees are likely to stay with an organiza-tion even when they are pursued by headhunterswaving money.

It's not difficult to understand how and why amotivation to achieve translates into strong leader-ship. If you set the performance bar high for your-self, you will do the same for the organization whenyou are in a position to do so. Likewise, a drive tosurpass goals and an interest in keeping score canbe contagious. Leaders with these traits can oftenbuild a team of managers around them with thesame traits. And of course, optimism and organiza-

The very wordempathy seemsunbusinesslike,

out of place amidthe tough realitiesof the

tional commitment are fundamental to leader-ship-just try to imagine running a company with-out them.

EmpathyOf all the dimensions of emotional intelligence,empathy is the most easily recognized. We have allfelt the empathy of a sensitive teacher or friend; wehave all been struck by its absence in an unfeelingcoach or boss. But when it comes to business, werarely hear people praised, let alone rewarded, fortheir empathy. The very word seems unbusi-nesslike, out of place amid the tough realities of themarketplace.

But empathy doesn't mean a kind of "I'm okay,you're okay" mushiness. For a leader, that is, it

doesn't mean adopting otherpeople's emotions as one's ownand trying to please everybody.That would be a nightmare-itwould make action impossi-ble. Rather, empathy meansthoughtfully considering em-ployees' feelings-along withother factors - in the process ofmaking intelligent decisions.

For an example of empathyin action, consider what hap-pened when two giant broker-age companies merged, creat-ing redundant jobs in all theirdivisions. One division man-

ager called his people together and gave a gloomyspeech that emphasized the number of people whowould soon he fired. The manager of another divi-sion gave his people a different kind of speech. Hewas upfront ahout his own worry and confusion,and he promised to keep people informed and totreat everyone fairly.

The difference between these two managers wasempathy. The first manager was too worried abouthis own fate to eonsider the feelings of his anxiety-stricken colleagues. The seeond knew intuitivelywhat his people were feeling, and he acknowledgedtheir fears with his words. Is it any surprise that thefirst manager saw his division sink as many demor-alized people, especially the most talented, departed?By eontrast, the second manager continued to be astrong leader, his best people stayed, and his divi-sion remained as productive as ever.

Empathy is particularly important today as acomponent of leadership for at least three reasons:the increasing use of teams; the rapid pace of global-ization; and the growing need to retain talent.

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Consider the challenge of leading a team. As any-one who has ever heen a part of one can attest,teams are cauldrons of bubbling emotions. They areoften charged with reaching a consensus-hardenough with two people and much more difficult asthe numbers increase. Even in groups with as fewas four or five members, alliances form and clash-ing agendas get set. A team's leader must be able tosense and understand the viewpoints of everyonearound the table.

That's exactly what a marketing manager at alarge information technology company was able todo when she was appointed to lead a troubled team.The group was in turmoil, overloaded by work andmissing deadlines. Tensions were high among themembers. Tinkering with procedures was notenough to bring the group together and make it aneffective part of the company.

So the manager took severalsteps. In a series of one-on-onesessions, she took the time to lis-ten to everyone in the group-what was frustrating them, howthey rated their colleagues,whether they felt they had beenignored. And then she directedthe team in a way that hrought ittogether: she encouraged peopleto speak more openly about theirfrustrations, and she helped peo-ple raise constructive complaintsduring meetings. In short, herempathy allowed her to under-stand her team's emotional makeup. The result wasnot just heightened collaboration among membersbut also added business, as the team was called onfor help by a wider range of internal clients.

Globalization is another reason for the rising im-portance of empathy for husiness leaders. Cross-cultural dialogue can easily lead to miscues andmisunderstandings. Empathy is an antidote. Peo-ple who have it are attuned to subtleties in bodylanguage; they can hear the message beneath thewords being spoken. Beyond that, they have a deepunderstanding of the existence and importance ofcultural and ethnic differences.

Consider the ease of an American consultantwhose team had just pitehed a project to a potentialJapanese client. In its dealings with Americans, theteam was accustomed to being bombarded withquestions after such a proposal, but this time it wasgreeted with a long silence. Other members of theteam, taking the silence as disapproval, were readyto pack and leave. The lead consultant gesturedthem to stop. Although he was not partieularly fa-

HARVARD BUSINESS REVIEW November-December 1998

Social skill isfriendliness

with a purpose:moving peoplein the direction

you desire.

miliar with Japanese culture, he read the client'sface and posture and sensed not rejection but inter-est-even deep consideration. He was right: whenthe client finally spoke, it was to give the consult-ing firm the job.

Finally, empathy plays a key role in the retentionof talent, particularly in today's information econ-omy. Leaders have always needed empathy to de-velop and keep good people, but today the stakesare higher. When good people leave, they take thecompany's knowledge with them.

That's where coaching and mentoring come in. Ithas repeatedly been shown that coaching and men-toring pay off not just in better performanee butalso in increased job satisfaction and decreasedturnover. But what makes coaching and mentoringwork best is the nature of the relationship. Out-

standing coaches and mentors getinside the heads of the peoplethey are helping. They sense howto give effective feedback. Theyknow when to push for betterperformance and when to holdhack. In the way they motivatetheir proteges, they demonstrateempathy in action.

In what is prohahly soundinglike a refrain, let me repeat thatempathy doesn't get mueh re-spect in business. People wonderhow leaders can make hard deci-sions if they arc "feeling" for allthe people who will be affected.

But leaders with empathy do more than sympa-thize with people around them: they use theirknowledge to improve their companies in subtlebut important ways.

Social SkillThe first three components of emotional intelli-gence are all self-management skills. The last two,empathy and soeial skill, eoncern a person's abilityto manage relationships with others. As a compo-nent of emotional intelligence, social skill is not assimple as it sounds. It's not just a matter of friendli-ness, although people with high levels of socialskill are rarely mean-spirited. Social skill, rather,is friendliness with a purpose: moving people in thedireetion you desire, whether that's agreement ona new marketing strategy or enthusiasm about anew product.

Socially skilled people tend to have a wide circleof acquaintances, and they have a knack for findingcommon ground with people of all kinds-a knack

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WHAT MAKES A LEADER?

for building rapport. That doesn't mean they social-ize continually; it means they work according tothe assumption that nothing important gets donealone. Such people have a network In place whenthe time for action comes.

Social skill is the culmination of the other di-mensions of emotional intelligence. People tend tohe very effective at managing relationships whenthey can understand and control their own emo-tions and can empathize with the feelings of others.Even motivation contrihutes to social skill. Re-member that people who are driven to achieve tendto be optimistic, even in the face of setbacks or fail-ure. When people are upheat, their "glow" is castupon conversations and other so-cial encounters. They are popular,and for good reason.

Because it is the outcome of theother dimensions of emotionalintelligence, social skill is recog-nizable on the joh in many waysthat will by now sound familiar.Socially skilled people, for in-stance, are adept at managingteams-that's their empathy atwork. Likewise, they are expertpersuaders-a manifestation ofself-awareness, self-regulation,and empathy combined. Giventhose skills, good persuadersknow when to make an emotionalplea, for instance, and when anappeal to reason will work hetter.And motivation, when publiclyvisible, makes such people excellent coUahorators;their passion for the work spreads to others, andthey are driven to find solutions.

But sometimes social skill shows itself in waysthe other emotional intelligence components donot. For instance, socially skilled people may attimes appear not to he working while at work. Theyseem to he idly schmoozing-chatting in the hall-ways with colleagues or joking around with peoplewho are not even connected to their "real" johs. So-cially skilled people, however, don't think it makessense to arbitrarily limit the scope of their relation-ships. They build bonds widely because they knowthat in these fluid times, they may need help some-day from people they are just getting to know today.

For example, consider the case of an executive inthe strategy department of a glohal computer man-ufacturer. By 1993, he was convinced that the com-pany's future lay with the Internet. Over the courseof the next year, he found kindred spirits and usedhis social skill to stitch together a virtual commu-

Emotionalintelligence

can be learned.The process is

not easy. Ittakes time andcommitment.

nity that cut across levels, divisions, and nations.He then used this de facto team to put up a corpo-rate Weh site, among the first hy a major company.And, on his own initiative, with no budget or for-mal status, he signed up the company to participatein an annual Internet industry convention. Callingon his allies and persuading various divisions todonate funds, he recruited more than 50 peoplefrom a dozen different units to represent the com-pany at the convention.

Management took notice: within a year of theconference, the executive's team formed the basisfor the company's first Internet division, and hewas formally put in charge of it. To get there, the

executive had ignored conven-tional houndaries, forging andmaintaining connections withpeople in every corner of the or-ganization.

Is social skill considered a keyleadership capability in mostcompanies? The answer is yes,especially when compared withthe other components of emo-tional intelligence. People seemto know intuitively that leadersneed to manage relationshipseffectively; no leader is an island.After all, the leader's task is to getwork done through other people,and social skill makes that possi-ble. A leader who cannot expressher empathy may as well nothave it at all. And a leader's moti-

vation will be useless if he cannot communicate hispassion to the organization. Social skill allows lead-ers to put their emotional intelligence to work.

It would be foolish to assert that good-old-fash-ioned IQ and technical ahility are not importantingredients in strong leadership. But the recipewould not he complete without emotional intelli-gence. It was once thought that the components ofemotional intelligence were "nice to have" in busi-ness leaders. But now we know that, for the sake ofperformance, these are ingredients that leaders"need to have."

It is fortunate, then, that emotional intelligencecan he learned. The process is not easy. It takestime and, most of all, commitment. But the bene-fits that come from having a well-developed emo-tional intelligence, both for the individual and forthe organization, make it worth the effort. ^

Reprint 98606 To order reprints, see the last page of this issue.

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