Being clever isn’t everything
Making the business case for emotional and social intelligence
The rules for work are
changing. We’re being
judged by a new yardstick:
not just by how smart we
are, but by how we handle
ourselves and each other.
Daniel Goleman
Working with Emotional Intelligence, 1998
Table of contents

   01               Why EI?
   02               What is EI?
   03               Why measure EI?
   04               Why do organizations use EI?




© 2008 Hay Group. All Rights Reserved              3
01
Why EI?
We find that most of the
characteristics that
differentiate the
outstanding performers
are these things that we
call social and emotional
competencies
Richard Boyatzis, 2008
It’s tough these days…

  We’re all trying to deliver the impossible:

      Change initiatives               “Raise acceptance and do it quicker”
      Recruitment                      “Get it right first time and increase retention”
      Development                      “Embed behavior change and raise ROI”
      Innovation                       “More of it and faster!”
      Strategy                         “Good decisions, quicker, with more impact”
      Operations                       “Do more, with less, more flexibly”
      Sales & marketing                “Better returns and a higher market share”
      Mergers & Acquisitions           “Faster, problem-free integration”
© 2008 Hay Group. All Rights Reserved                                                      6
…does being clever help?

   Of course it does.
   In professional and technical fields people are typically in the top 20% of intelligence.
   That’s the threshold.


   But it’s not enough – is it!
   So what differentiates the very best – leaders and professionals – within the top 20%?

   Employers consistently list:
                Communication                                    being able to listen, converse and present
                Adaptability                                  creative responses to setbacks and obstacles
                Personal management                           motivation to work, pride, a desire to develop
                Interpersonal effectiveness               teamwork, co-operation, the skills to negotiate
                Organizational effectiveness       leadership potential, the desire to make a contribution


   Daniel Goleman, Working with Emotional Intelligence, 1998


© 2008 Hay Group. All Rights Reserved                                                                           7
The CEO says, “Okay, prove to me EI works”
What do I do?
I say: “Do you have an employee that you wish you
could clone? Somebody who’s great.”
They usually say yes immediately.
So I ask them: “Tell me about this person. What makes
them different? What kind of impact do they have on
the people around them?”
Their description proves the case.
I never have to justify emotional or social intelligence
competencies. All I have to do is label them.
Richard Boyatzis, 2008
02
What is EI?
The capacity for recognizing
our own feelings
and those of others,
for motivating ourselves,
for managing emotions well in
ourselves and in our relationships
Daniel Goleman
A simple model that captures it all…


                      SELF                OTHERS       …the characteristics that help us deliver
                                                         – individually and through others –
                      Self                 Social
      AWARENESS




                   awareness             awareness
                                                                 working co-operatively
                                                                 addressing and resolving conflict
                                                                 influencing individuals and groups
                                                                 motivating a colleague
      ACTIONS




                                                                 inspiring a team
                     Self               Relationship             developing or mentoring others
                  management            management

                                                       performance



© 2008 Hay Group. All Rights Reserved                                                                  11
The heart of EI


                                                        SELF       OTHERS


       Awareness of your emotions                     Self        Social




                                        AWARENESS
                                                    awareness    awareness
       Insight into their impact on
           your performance

       Honesty in your positive and
           negative biases


                                        ACTIONS
                                                       Self      Relationship
                                                    management   management




© 2008 Hay Group. All Rights Reserved                                           12
The fire and the brakes


                                                        SELF       OTHERS


       Self-control – especially                       Self        Social




                                        AWARENESS
           under pressure                            awareness    awareness

       The energy to do your best

       Openness to change and
           new ideas


                                        ACTIONS
       Persistence – despite                          Self      Relationship
           obstacles and setbacks                   management   management




© 2008 Hay Group. All Rights Reserved                                           13
Tuning in


                        SELF              OTHERS

                        Self              Social        Sensing others’ feelings and
        AWARENESS




                     awareness          awareness        perspectives

                                                        Reading the organization –
                                                         the influencers, the networks
                                                         and the dynamics
        ACTIONS




                       Self             Relationship
                    management          management




© 2008 Hay Group. All Rights Reserved                                                    14
Making a difference


                        SELF              OTHERS

                        Self               Social       Turning conflict into agreement
        AWARENESS




                     awareness           awareness
                                                        Collaborating with others

                                                        Having a positive impact

                                                        Bringing out the best in others
        ACTIONS




                       Self             Relationship    Bringing people together to get
                    management          management       the job done




© 2008 Hay Group. All Rights Reserved                                                      15
It’s not a fad, it’s not a trend.

EI is the result of a long history
of analyzing social intelligence
(otherwise known as
‘what makes people tick’).
The latest in a long line of great thinking



     Amygdala
     THE ‘EMOTIONAL’ BRAIN
     Responds quickly based on:
      what motivates us                                                        ACTUAL
      what we care about
                                                                                BEHAVIOR




                                        Prefrontal lobes
                                        THE ‘THINKING’ BRAIN
                                        Analyzes slowly for meaning:
                                         acts as a brake
                                         is a check on motivational impulses


© 2008 Hay Group. All Rights Reserved                                                      17
03
Why measure EI?
The EI link to business results


                                                                             Business
                                                                              Results
                                                             Discretionary
                                                                 Effort

     Emotional
                                            Organizational
    Intelligence
                                               Climate

                                 What you
                                   do

     What you
      bring




© 2008 Hay Group. All Rights Reserved                                                   19
The road to hell is paved with good intentions…

 No one sets out to be an ineffective leader. No one tries to be bad at their job.

 It’s more subtle than that:
     we get to thinking we’re a bit better (or worse!) than we really are…
     we hold on to our beliefs and assumptions, despite the evidence before us…
     we listen to what we want, or expect, to hear…

 It’s a slippery slope, isn’t it?

 It’s the difference between intention and impact.

 That’s why 3600 feedback is so valuable.
 Individuals can see their intention – their own self-view – mirrored back to them.
 But they also see their impact – through the eyes of their boss, their peers, their team.


 They see the bit that really matters.
© 2008 Hay Group. All Rights Reserved                                                        20
Clear the fog

   Raising awareness is the first step to raising capability…
   You can only change what you already know about yourself.
   Know more – you can change more.
   Ask for feedback – you know more.
                                                                                  KNOWN BY SELF   UNKNOWN BY SELF




                                                              KNOWN BY OTHERS
                                                                                  1                           2
   Joseph Luft and Harry Ingham worked it out in the 1950s.
   You may know it as the Johari Window.
                                                                                  open / free         blind
                                                                                    area              area
   Learning reduces your blind area
   Sharing what you’ve learned reduces your hidden area



                                                              UNKNOWN BY OTHERS
   Doing both reduces your unknown area
                                                                                      hidden       unknown
                                                                                       area          area
   EI feedback is the starting point
                                                                                  3                           4


© 2008 Hay Group. All Rights Reserved                                                                               21
Focus on the things you can change

   …and, unlike IQ, you can develop EI
   When it comes to being clever, we’re pretty much stuck with what we’ve got.
   But we also know people can change.
   (If we don’t believe that we might as well all pack up and go home now!)


   What makes behavior change possible?
       the tension between who we are and who we want to be
       the feeling of reward – and relief – when we can build on our strengths
       the sense of ownership when we can set our own learning agenda
       the challenge and support we get from people we trust


   3600 EI feedback provides the focus for behavior change
       data on the behaviors that matter
       applicable to any leadership or professional role


© 2008 Hay Group. All Rights Reserved                                             22
Speak the same language

   EI – is it for everyone?
   Is there anyone in your organization who you wish were less emotionally intelligent?
   Hard to imagine, isn’t it?

   It’s obvious that EI makes for better leaders and more effective professionals.
   But which of us hasn’t felt better after a chat with the extraordinarily empathic cleaner?
   Or learned something important from the organizationally aware secretary.
   Or been influenced by the words of a brave and insightful junior colleague.

   EI has no limits
   It has the flexibility to fit any role, of any size, at any level.
   It helps everyone perform better.

   If you want to embed one set of behaviors across your organization,
   this is the one to go for.

© 2008 Hay Group. All Rights Reserved                                                           23
We’ve found that the people who really improve their
EI have some surprising things in common:

   they don’t bite off more than they can chew
   they are really clear about the payoff – for them
    and others – if they change
   they focus on their strengths and make the most
    of them before looking at their weaknesses
   they are feedback junkies – tenacious about
    asking those around them how they’re doing
04
Why do organizations use EI?
Great listener                         Blank wall
Encourager                                Doubter
Communicator                            Secretive
Courageous                           Intimidating
Sense of humor                       Bad temper
Shows empathy                       Self-centered
Decisive                               Indecisive
Takes responsibility                      Blames
Humble                                   Arrogant
Shares authority                         Mistrusts
Who would you work best for?
Taken from Daniel Goleman, Social Intelligence, 2006
EI accounts for leadership excellence…

   EI competencies distinguish the stars from the average…
     In a study of 300 top-level executives from 15
     global companies 85-90% of leadership success
     was linked to social and emotional intelligence
     Spencer, L.M., Jr,. 1997



        …are better predictors of success than previous experience or high IQ…
                              In a multinational study of 515 senior executives EI scores were
                              high in 74% of successful hires, but only high in 24% of failed hires.
                              Egon Zehnder International


                                   …and they allow leaders to create high performance climates
                                                                  Schools whose head teachers have high EI scores
                                                                  demonstrate the best national inspection results
                                                                  Ongoing Hay Group research

© 2008 Hay Group. All Rights Reserved                                                                                27
…bottom-line performance…

   EI competencies help professionals do more work…
    In most complex jobs a top performer is 127% more productive
    than an average performer Hunter, Schmidt & Judiesch, 1990
    Competency research in over 200 organizations worldwide
    attributes ⅓ of this difference to technical and cognitive ability,
    and ⅔ to emotional competence Goleman, 1998


                                                   …make more sales…
                                        At L’Oreal, sales professional with high EI scores
                                        sold $91,370 more than their lower-scoring peers
                                        Spencer & Spencer, 1993


                                                                                     …and deliver more profit
                                                              High scoring consulting partners delivered $1.2 million
                                                              more profit from their accounts than their peers
                                                              Boyatzis, 1999

© 2008 Hay Group. All Rights Reserved                                                                                   28
…and better outcomes across all sectors

   Examples from nursing…
     Nurses and nurse managers with higher EI scores are
     responsible for:
        lower staff turnover
        higher frequency of professional practice behaviors
        higher staff, patient and doctor satisfaction


     Studies into the doctor-patient relationship show that
     doctors’ demonstration of empathy reduces hospital
     litigation issues
     Hay Group nursing leadership studies, 2003 & 2006
                                                                                       …and manufacturing
                             After supervisors in a manufacturing plant received training in emotional competencies
                             –how to listen better and help employees resolve problems on their own – lost-time
                             accidents were reduced by 50%, formal grievances were reduced from 15 to 3 per year,
                             and the plant exceeded productivity goals by $250,000 Pesuric & Byham, 1996


© 2008 Hay Group. All Rights Reserved                                                                                 29
Learn more

   For information on products and services to help develop your EI visit
     www.haygroup.com/leadershipandtalentondemand or call 1.800.729.8074!




© 2008 Hay Group. All Rights Reserved                                   30

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Why Being Clever Isnt Everything

  • 1. Being clever isn’t everything Making the business case for emotional and social intelligence
  • 2. The rules for work are changing. We’re being judged by a new yardstick: not just by how smart we are, but by how we handle ourselves and each other. Daniel Goleman Working with Emotional Intelligence, 1998
  • 3. Table of contents 01 Why EI? 02 What is EI? 03 Why measure EI? 04 Why do organizations use EI? © 2008 Hay Group. All Rights Reserved 3
  • 5. We find that most of the characteristics that differentiate the outstanding performers are these things that we call social and emotional competencies Richard Boyatzis, 2008
  • 6. It’s tough these days… We’re all trying to deliver the impossible:  Change initiatives “Raise acceptance and do it quicker”  Recruitment “Get it right first time and increase retention”  Development “Embed behavior change and raise ROI”  Innovation “More of it and faster!”  Strategy “Good decisions, quicker, with more impact”  Operations “Do more, with less, more flexibly”  Sales & marketing “Better returns and a higher market share”  Mergers & Acquisitions “Faster, problem-free integration” © 2008 Hay Group. All Rights Reserved 6
  • 7. …does being clever help? Of course it does. In professional and technical fields people are typically in the top 20% of intelligence. That’s the threshold. But it’s not enough – is it! So what differentiates the very best – leaders and professionals – within the top 20%? Employers consistently list:  Communication being able to listen, converse and present  Adaptability creative responses to setbacks and obstacles  Personal management motivation to work, pride, a desire to develop  Interpersonal effectiveness teamwork, co-operation, the skills to negotiate  Organizational effectiveness leadership potential, the desire to make a contribution Daniel Goleman, Working with Emotional Intelligence, 1998 © 2008 Hay Group. All Rights Reserved 7
  • 8. The CEO says, “Okay, prove to me EI works” What do I do? I say: “Do you have an employee that you wish you could clone? Somebody who’s great.” They usually say yes immediately. So I ask them: “Tell me about this person. What makes them different? What kind of impact do they have on the people around them?” Their description proves the case. I never have to justify emotional or social intelligence competencies. All I have to do is label them. Richard Boyatzis, 2008
  • 10. The capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships Daniel Goleman
  • 11. A simple model that captures it all… SELF OTHERS …the characteristics that help us deliver – individually and through others – Self Social AWARENESS awareness awareness  working co-operatively  addressing and resolving conflict  influencing individuals and groups  motivating a colleague ACTIONS  inspiring a team Self Relationship  developing or mentoring others management management performance © 2008 Hay Group. All Rights Reserved 11
  • 12. The heart of EI SELF OTHERS  Awareness of your emotions Self Social AWARENESS awareness awareness  Insight into their impact on your performance  Honesty in your positive and negative biases ACTIONS Self Relationship management management © 2008 Hay Group. All Rights Reserved 12
  • 13. The fire and the brakes SELF OTHERS  Self-control – especially Self Social AWARENESS under pressure awareness awareness  The energy to do your best  Openness to change and new ideas ACTIONS  Persistence – despite Self Relationship obstacles and setbacks management management © 2008 Hay Group. All Rights Reserved 13
  • 14. Tuning in SELF OTHERS Self Social  Sensing others’ feelings and AWARENESS awareness awareness perspectives  Reading the organization – the influencers, the networks and the dynamics ACTIONS Self Relationship management management © 2008 Hay Group. All Rights Reserved 14
  • 15. Making a difference SELF OTHERS Self Social  Turning conflict into agreement AWARENESS awareness awareness  Collaborating with others  Having a positive impact  Bringing out the best in others ACTIONS Self Relationship  Bringing people together to get management management the job done © 2008 Hay Group. All Rights Reserved 15
  • 16. It’s not a fad, it’s not a trend. EI is the result of a long history of analyzing social intelligence (otherwise known as ‘what makes people tick’).
  • 17. The latest in a long line of great thinking Amygdala THE ‘EMOTIONAL’ BRAIN Responds quickly based on:  what motivates us ACTUAL  what we care about BEHAVIOR Prefrontal lobes THE ‘THINKING’ BRAIN Analyzes slowly for meaning:  acts as a brake  is a check on motivational impulses © 2008 Hay Group. All Rights Reserved 17
  • 19. The EI link to business results Business Results Discretionary Effort Emotional Organizational Intelligence Climate What you do What you bring © 2008 Hay Group. All Rights Reserved 19
  • 20. The road to hell is paved with good intentions… No one sets out to be an ineffective leader. No one tries to be bad at their job. It’s more subtle than that:  we get to thinking we’re a bit better (or worse!) than we really are…  we hold on to our beliefs and assumptions, despite the evidence before us…  we listen to what we want, or expect, to hear… It’s a slippery slope, isn’t it? It’s the difference between intention and impact. That’s why 3600 feedback is so valuable. Individuals can see their intention – their own self-view – mirrored back to them. But they also see their impact – through the eyes of their boss, their peers, their team. They see the bit that really matters. © 2008 Hay Group. All Rights Reserved 20
  • 21. Clear the fog Raising awareness is the first step to raising capability… You can only change what you already know about yourself. Know more – you can change more. Ask for feedback – you know more. KNOWN BY SELF UNKNOWN BY SELF KNOWN BY OTHERS 1 2 Joseph Luft and Harry Ingham worked it out in the 1950s. You may know it as the Johari Window. open / free blind area area Learning reduces your blind area Sharing what you’ve learned reduces your hidden area UNKNOWN BY OTHERS Doing both reduces your unknown area hidden unknown area area EI feedback is the starting point 3 4 © 2008 Hay Group. All Rights Reserved 21
  • 22. Focus on the things you can change …and, unlike IQ, you can develop EI When it comes to being clever, we’re pretty much stuck with what we’ve got. But we also know people can change. (If we don’t believe that we might as well all pack up and go home now!) What makes behavior change possible?  the tension between who we are and who we want to be  the feeling of reward – and relief – when we can build on our strengths  the sense of ownership when we can set our own learning agenda  the challenge and support we get from people we trust 3600 EI feedback provides the focus for behavior change  data on the behaviors that matter  applicable to any leadership or professional role © 2008 Hay Group. All Rights Reserved 22
  • 23. Speak the same language EI – is it for everyone? Is there anyone in your organization who you wish were less emotionally intelligent? Hard to imagine, isn’t it? It’s obvious that EI makes for better leaders and more effective professionals. But which of us hasn’t felt better after a chat with the extraordinarily empathic cleaner? Or learned something important from the organizationally aware secretary. Or been influenced by the words of a brave and insightful junior colleague. EI has no limits It has the flexibility to fit any role, of any size, at any level. It helps everyone perform better. If you want to embed one set of behaviors across your organization, this is the one to go for. © 2008 Hay Group. All Rights Reserved 23
  • 24. We’ve found that the people who really improve their EI have some surprising things in common:  they don’t bite off more than they can chew  they are really clear about the payoff – for them and others – if they change  they focus on their strengths and make the most of them before looking at their weaknesses  they are feedback junkies – tenacious about asking those around them how they’re doing
  • 26. Great listener Blank wall Encourager Doubter Communicator Secretive Courageous Intimidating Sense of humor Bad temper Shows empathy Self-centered Decisive Indecisive Takes responsibility Blames Humble Arrogant Shares authority Mistrusts Who would you work best for? Taken from Daniel Goleman, Social Intelligence, 2006
  • 27. EI accounts for leadership excellence… EI competencies distinguish the stars from the average… In a study of 300 top-level executives from 15 global companies 85-90% of leadership success was linked to social and emotional intelligence Spencer, L.M., Jr,. 1997 …are better predictors of success than previous experience or high IQ… In a multinational study of 515 senior executives EI scores were high in 74% of successful hires, but only high in 24% of failed hires. Egon Zehnder International …and they allow leaders to create high performance climates Schools whose head teachers have high EI scores demonstrate the best national inspection results Ongoing Hay Group research © 2008 Hay Group. All Rights Reserved 27
  • 28. …bottom-line performance… EI competencies help professionals do more work… In most complex jobs a top performer is 127% more productive than an average performer Hunter, Schmidt & Judiesch, 1990 Competency research in over 200 organizations worldwide attributes ⅓ of this difference to technical and cognitive ability, and ⅔ to emotional competence Goleman, 1998 …make more sales… At L’Oreal, sales professional with high EI scores sold $91,370 more than their lower-scoring peers Spencer & Spencer, 1993 …and deliver more profit High scoring consulting partners delivered $1.2 million more profit from their accounts than their peers Boyatzis, 1999 © 2008 Hay Group. All Rights Reserved 28
  • 29. …and better outcomes across all sectors Examples from nursing… Nurses and nurse managers with higher EI scores are responsible for:  lower staff turnover  higher frequency of professional practice behaviors  higher staff, patient and doctor satisfaction Studies into the doctor-patient relationship show that doctors’ demonstration of empathy reduces hospital litigation issues Hay Group nursing leadership studies, 2003 & 2006 …and manufacturing After supervisors in a manufacturing plant received training in emotional competencies –how to listen better and help employees resolve problems on their own – lost-time accidents were reduced by 50%, formal grievances were reduced from 15 to 3 per year, and the plant exceeded productivity goals by $250,000 Pesuric & Byham, 1996 © 2008 Hay Group. All Rights Reserved 29
  • 30. Learn more For information on products and services to help develop your EI visit www.haygroup.com/leadershipandtalentondemand or call 1.800.729.8074! © 2008 Hay Group. All Rights Reserved 30