The ROI of Social +Emotional Intelligence in Leadership

Jonathan “JJ” Jarrell

Attributes Exercise

Think of an individual in your life who has had a tremendous positive impact on you in your life or in the workplace – a friend, family member, mentor, supervisor, colleague, or another person. . .

On sticky notes, jot down the attributes that make this individual so special, the qualities that make you admire this person – one attribute or quality per sticky note – 3 minimum, 5 maximum. When finished, just put these aside for later.

“Keep away from people who belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great.”

- Mark Twain

Social + Emotional Intelligence: A Leadership & Career Imperative

“Emotional intelligence is much more powerful than IQ in determining who emerges as a leader.

IQ is a threshold competence. You need it,

but it doesn’t make you a star.

Emotional intelligence can.” - Warren Bennis, author of On Becoming a Leader.

Ever have a supervisor, colleague or direct report who was lacking in

S+EI skills? What

IMPACT did this have on you?

What IMPACT did this have

on the organization? How did

YOU handle the situation? What

did YOU do?

S + EI Enhance Leadership Skills and Career Advancement

1. It provides a language and framework for understanding

2. An important skill set for leaders and managers to use and model

3. Vastly expands our understanding of ourselves and others

4. S+EI = Better Leadership (and greater productivity, employee engagement, customer satisfaction, and profitability)

“Leaders with higher S+EI produce more powerful business results and greater profitability.”

-- Emotional Intelligence of Leaders: A Profile of Top Executives, Steven Stein,

Leadership & Organization Development Journal, 2009

What is S+EI?

Social and emotional

intelligence is the ability to be

aware of our own emotions and

those of others, in the moment,

and to use that information to

manage ourselves and manage

our relationships

A WORKING DEFINITION

Social + Emotional Intelligence

• “ 80 – 90% of the competencies that differentiate top performance are in the domain of EI.”

Daniel Goleman in Working With Emotional Intelligence, 1998

• “EI is more than twice as predictive of business performance than purely cognitive intelligence.”

Gerald Mount in The Role of Emotional Intelligence in Developing International Business Capability, 2006

• “Leaders with higher social & emotional intelligence produce more powerful business results and greater profitability.”

Steven Stein in Emotional Intelligence of Leaders: A Profile of Top Executives, Leadership & Organization Development Journal, 2009

Tyrant’s

Harsh, high-handed, dictatorial

Abusive, abrasive, power hungry

Their need to feel omnipotent will demean and trample others

Bully’s

Habitually cruel

Threatening, belittling

Feel justified in bullying “weaker” people

Seek control through fear and intimidation

Often a power differential

Time Bomb’s

Unexpectedly erupt

Adults who throw childish tantrums

Can’t tolerate opposing opinions

Suddenly erupt in shouting tirades, rage, blaming everyone else

The Solution?

Social + Emotional Intelligence

Assessment (for awareness)

Training programs

Introducing the concept into the

culture

Individual development

programs (coaching)

Objectives for Today’s Session

Overview of Social + Emotional Intelligence

What is it & why do we care?

The business case (ROI)

and the health & wellness

case

The 26 distinct

competencies

How to measure

S+EI

Too Much College, Too Little Kindergarten

IQ: 187

EQ: 0

S+EI Four-Quadrant Model

Self Other Aw

are

ness

Managem

ent

Self Awareness

Other Awareness

Self Management

Relationship Management

S+EI is about behavior and behaviors can be changed

Genetics

So what ??? Hard evidence that the soft skills count . . .

In Business – Greater

Productivity

Retention of top performers

Employee satisfaction & engagement

Profitability

In Life – Individuals

Are healthier

Live longer

Enjoy more satisfying relationships

Have larger, deeper and more fulfilling social networks

The Business

Case: The ROI

S+EI Coaching, Training & Assessments Embraced by Many Organizations

Social + Emotional Intelligence Programs in the Workplace

Increase employee engagement

Improve productivity

Increase sales and profits

Improve customer service

Reduce sick days and even health care costs!

S+EI and the Bottom Line at Pepsi

At Pepsico, S+EI programs generated:

10% increase in productivity

Dr. David McClelland, Journal of Psychological Science, 2008

87% decrease in executive turnover (saving $4M)

Over 1000% ROI

Sanofi-Aventis Pharmaceutical Company

EI increased in development group 18% compared with control group

EI trained sales reps outsold the control group by an average of 12% or $55,200 each per month

Increase sales and profits

X 40 reps = $2,208,000 per MONTH better

ROI = 600% ($6 for every dollar invested in EI training and coaching)

Cherniss, Emotional Intelligence in Organizations, 2003

US Air Force

Turnover among US Air Force recruiters = 50% per year

Cost $30,000 to replace each recruiter who left

Emotional Intelligence assessment instruments used in selection process for new recruiters

USAF created competency model of successful recruiters

Finding: successful recruiters strong in 5 EI skills

Screened new recruiters for 5 skills

Trained incumbents in the 5 skills

Air Force Results

Retention of recruiters went from 50% to 96% the first year

Immediate savings of $3 million annually

(GAO Report on Military Recruiting, 1998 - 2008)

Other Quick Examples

MetLife’s S+EI programs with selected

groups resulted in S+EI trained and coached sales people outselling their control group counterparts by 37% (key competencies of self-confidence, optimism, initiative, and empathy)

At L’Oreal, S+EI programs brought in

$2.5 million more in sales in the first year.

At Sheraton, S+EI programs helped increase market share by 24%.

SixSeconds White Paper, October 1, 2010

Other Quick Examples

American Express Financial Services – S+EI coaching & training program introduced to financial advisors, and sales increased 18%

SixSeconds White Paper, October 1, 2010

Supervisors in a manufacturing plant received S+EI training and coaching, and lost-time accidents were reduced from 15 per year to 3, and the plant exceeded productivity goals by $250,000

S+EI Coaching and Training

The results at Avon

More robust, vigorous organization

Competitive advantage

Greater performance & productivity

Higher profits

Cost savings due to reduced turnover, absenteeism, lowered performance and productivity

Overall more positive work climate

“Emotional Intelligence is in our DNA here at Avon because relationships are critical at every stage of our business.”

Andrea Jung, Chair & CEO of Avon Products

Research shows . . .

Top reasons for losing customers: 70% are related to lack of S+EI (The Forum Corporation on Manufacturing and Service Companies, 2004)

50% of time wasted in business is due to lack of trust, a key S+EI competency (John O. Whitney, Director, Deming Center for Quality Management, 2002)

The top reasons careers are derailed are related to a lack of S+EI (Center for Creative Leadership, 2005; Stanford University, 2001)

Top Reasons for Career Derailment

Poor interpersonal relationships

• Single most common factor – being too harshly critical

• Insensitive or demanding

• Alienating co-workers and direct-reports

Rigidity

• Inability to accept feedback about traits they need to change or improve

• Inability to listen, learn and change

Inability to work with a team

• Being disrespectful

• Being uncooperative

• Not sharing information, plans or credit.

Center for Creative Leadership, 2005

The Health & Wellness Case

People with positive emotions

• Have lower disease risks

• Fewer symptoms & less pain when they do fall ill

• Live longer!

• Dr. B. Fredrickson, Distinguished Professor, University of North Carolina, Positivity, 2009

• Cohen, S. & Doherty, R., Psychological Bulletin, 2005

People with positive emotions earn more over the course of their lifetimes.*

Diener, E., Social Indicators Research, 2002

*ABOUT 33% MORE !!

People with positive emotions have more satisfying relationships*

Harker, L. & Keltner, D., Journal of Personality and Social Psychology, 2001

*And enjoy more satisfying social networks, a key

factor in longevity

Other Personal Benefits

Improved performance and achievement

More creativity and innovative problem-solving

Better decision-making

More flexible thought processes

Improved memory

So What Does All This Mean?

Self Other Aw

are

ness

Managem

ent

Self Awareness

Other Awareness

Self Management

Relationship Management

Self-Awareness Emotional Self

Awareness

Accurate Self Assessment

Personal Power

Self Management

Behavioral Self Control

Integrity Innovation & Creativity

Initiative & Bias for Action

Achievement Drive

Realistic Optimism

Resilience

Stress Management

Personal Agility

Intentionality

Other Awareness Empathy

Situational/ Organizational

Awareness

Service Orientation

Aaron Feuerstein

Relationship Management Communication

Interpersonal Effectiveness

Powerful Influencing

Skills

Conflict Management

Inspirational Leadership

Catalyzing Change

Building Bonds

Teamwork & Collaboration

Coaching & Mentoring

Others Building Trust

We should take care not to

make the intellect our god. It has,

of course, powerful muscles, but

no personality. It cannot lead, it

can only serve

ALBERT EINSTEIN

Social + Emotional Intelligence

Competencies are measurable and learnable

Best learned through coaching (and to some extent, training)

Grounded in science

Proven ROI

S+EI is a core skill-set

Starts with awareness

Social + Emotional Intelligence Profile (SEIP)

26 competencies – most comprehensive

Available in self-scoring version & 360

Adult, Youth, and Work versions

Excellent Validity & Reliability Cronbach’s alpha = .96

For reference, MBTI is .56

Translations underway Russian, Chinese, Portuguese

Spanish, Italian, French, and

German coming Fall 2011.

In January, 2010, an independent, third

party statistical analysis firm found the Emotional Intelligence Profile (EIP) one of the most valid and

statistically reliable assessments they had

seen in 6 years of doing this work

Tools You Can Use

Name it to Tame it: Building Emotional Self-Awareness

Anxious

Apathetic

Appreciative

Apprehensive

Energetic

Enthusiastic

Envious

Exhilarated

Manipulated

Mean

Misunderstood

Motivated

Stressed

Strong

Stubborn

Stuck

Name It Worksheet

• When I woke up this morning I was feeling ______________ and _______________ and _____________.

• As I was getting ready for the day I was feeling __________________ and

_________________ and _____________________.

• While I was commuting to work/school I was feeling ________________ and ___________________ and ___________________.

• When I first got to work/school I was feeling _______________________ and ____________________________.

• By mid-morning I was feeling ________________ and _____________________.

• At lunch time I was feeling __________________ and _____________________.

My Trigger List A Worksheet for Behavioral Self Control

Trigger What I Feel in My Body

My Self Talk My Reaction (What I Do)

How I Feel After I React

Damage Done A Better Response

How I’ll Feel Then

Let’s connect!

http://twitter.com/ownyourgrowth http://facebook.com

http://www.linkedin.com/in/jjarrell jj@ownyourgrowth.net

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today!

Questions ??..