NAFCU Journal November December 2021

42 THE NAFCU JOURNAL November–December 2021 T here was a time when some lead- ers felt that being highly compe- tent at your job was enough to ensure success. As long as you were the smartest person in the room, and everyone knew it, you would be an effective leader. Many also felt that “soft skills” such as interpersonal com- munications, conflict resolution, under- standing personality styles and empathy were not essential. The truth is… that could not be further from the truth. When Daniel Goleman, the world’s lead- ing authority on EQ (emotional intelli- gence), analyzed executives at nearly 200 companies, he found that EQ was twice as important as both IQ and techni- cal ability in driving performance. It accounted for an astonishing 90% of the difference between average leaders and effective leaders at the most senior levels. In my research working with leadership groups around the world, I have seen the same results. Even companies that once would expect technical competence to be paramount, such as software engi- neering, the ratio was still a whopping 75% favoring EQ over IQ for career and leadership success. According to Goldman, EQ is made up of five components: Self-awareness, self-regulation, motivation, empathy and social skills. Self-awareness The ability to consistently monitor one’s emotional state and identify what emo- tions one is feeling. The skill of stepping back and asking yourself, “What am I feeling right now?” It might be anger, confusion, frustration, defensiveness or a myriad of other emotions. A self-aware leader also understands the impact their emotions can have on others. Self-regulation Individuals that possess this component can identify the emotion they are feeling and express it appropriately. Essentially, this is the ability to think before you act. When confronted with strong negative emotions, capable self-regulators control and redirect their behavior into a more positive reaction. They have the ability to stay calm and focused during difficult conversations, which allows them to create an environment of psychological safety where people feel comfortable speaking with candor, something that is essential to a high-performance culture. Motivation Motivation in this sense is the capacity to work with energy, passion and commit- ment for the success of the team and the organization, not just for oneself. They are proactive and goal-oriented. Some- one with this sort of motivation sends a strong signal that they are there to help and support, not blame. Empathy Perhaps the most critical skill listed, this component represents the capacity of understanding the emotions of others and treating them accordingly. Empa- thetic leaders are good listeners, sensitive to cultural issues and deeply committed to making a genuine shared connection. During conversations, they stay present and are focused on both the verbal and nonverbal cues that give a window into the emotions of others. They do not judge; they stay curious and compas- sionate. Their goal is to help others feel comfortable, heard and safe. LEADERSHIP DOWNLOAD LEADING WITH EQ By John Spence When Daniel Goleman, the world’s leading authority on EQ (emotional intelligence), analyzed executives at nearly 200 companies, he found that EQ was twice as important as both IQ and technical ability in driving performance.