The Impact of Emotional Intelligence on Leadership

One of the most critical factors shaping modern leadership is Emotional Intelligence (EI) which is defined as the capacity to manage one’s own emotions while also understanding and responding to the emotions of others. 

Daniel Goleman, one of the pioneers for EI in the workplace states that “technical skills will only take you so far. EI will take you farther”. Goleman suggested five components of EI to help individuals navigate and maximise their personal and professional relationships effectively: 

• Self-Awareness refers to the ability to recognise and understand your own emotions and how they affect others. 
• Self-regulation is the ability to manage or redirect disruptive emotions and adapt to change.
• Motivation is about a leader’s drive to achieve meaningful goals, for reasons beyond external rewards. 
• Empathy is the ability to understand the feelings of others by recognising and considering others’ perspectives.
• Social skills refer to proficiency in managing relationships and having the ability to inspire and influence others positively.

Much has been written about Satya Nadella’s success as the CEO of Microsoft. His approach to leadership is grounded in EI, with a strong emphasis on empathy, building relationships and developing a collaborative work culture. With his leadership, Microsoft has experienced a profound transformation with its share price growing an impressive 969% since Nadella took over. So, what can leaders learn from this?

By fostering EI in themselves and their organisations, leaders can cultivate a deeper understanding of themselves and their teams. An emotionally intelligent leader can build trust within their teams by applying behaviours and practices which are rooted in Goleman’s components of emotional intelligence. 

Leaders who possess social skills, practice empathy, and understand motivational drivers can set a foundation for building strong relationships. These qualities enable leaders to understand, connect and support their employees. The Society of Human Resource Management found that leaders who demonstrate strong empathy and EI, increase levels of employee retention in their organisations by 67%. 

Emotionally intelligent leaders who are effective at managing their emotions and understanding the emotions of others excel in areas such as communication and decision-making. They are adept at expressing themselves clearly and tailoring their communication styles to suit individuals and situations, which cultivates open dialogue and reduces misunderstandings. They remain calm under pressure and take a holistic view of situations, leading to rational and empathetic decision-making. 

Leaders with high levels of emotional intelligence also tend to practice self-regulation which means they avoid impulse reactions, making them better equipped to manage conflict. By remaining composed during disputes, they better understand different perspectives and lead their teams towards constructive solutions and growth opportunities. 

By focusing on these components of emotional intelligence, leaders can establish lasting trust within their teams driving higher performance. The Journal of Organisational Behaviour has found that high levels of trust can increase team performance by up to 20%. 

Leaders who invest in understanding and developing their emotional intelligence are much better equipped to handle their own emotions and those of others,which makes them more capable of leading their teams to success. 

What steps will you take to harness the power of EI to transform your leadership, build trust and increase performance within your team?

Contact us

Learn more about how our People and Change Consulting services can help you

Visit our People and Change Consulting page