The business environment is evolving at such a fast rate that even experienced entrepreneurs are finding it tough to go with the flow. We are in a time of constant change where there is no room for procrastination or hanging on to traditional business models. As Peter Drucker, one of the most influential thinkers on management theory put it ‘The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.”

Indeed, our island in the sun has not been spared from events that have reshaped the business world. We may not have gone through an economic tsunami, but the ripple effect of the bleak economic scenario triggered by the collapse of renowned business and financial institutions across the globe is still strongly felt. Organizations are being downsized, reengineered to remain competitive. The business scenario is still adjusting to the heavy shift from a manufacturing economy to a value- added service oriented one.

But what has emotional intelligence got to do with all this? Emotional intelligence is the most dynamic tool to recognize change and act upon it. It is critically important to all entrepreneurs, not only in managing employees but also in getting new customers, attracting investors and at every step of building a business. Let us pose another question. Why emotional intelligence? Because every business is, in its own way, a service, and at the heart of every service stand the importance of nurturing relationships, whether interpersonal, inter-group or interdepartmental. Because the world is shifting from a forecast given push mode to a more demand driven pull system. A business leader can never consolidate and generate new business unless he is in touch with a constantly changing reality, a reality which has necessitated new skills like effective communication, inspiring and influencing rather than merely exercising power and control, collaborating, networking and cooperating with others toward shared goals rather than taking the authoritarian or totalitarian approach. As Maslow put it, authoritarians must be excluded or they must be converted.

It would be appropriate at this stage to dwell deeper into the subject of emotional intelligence. By far, it is not a new one. It has been around for quite some time. But it has now become an essential tool for any business environment. Emotional intelligence, as defined by its pioneer, psychologist Daniel Goleman, is “the capacity for recognizing our own feelings and those of others, for motivating ourselves and for managing the emotions well in ourselves and in our inter-personal relationships in any context.” Emotional intelligence (EI) is about awareness, waking up to that particular reality which energizes us, empowers our employees, and probes into whatever energizes our customers. What is of added- value to us is probably of added-value to others. EI is the ability to relate with people and understand their emotions rather than shrugging them off as a waste of precious time. This does not mean falling prey to being swept up into every person’s personal story! EI skills require a healthy balance between emotion and logic, but logic in itself can never exclude emotion. Goleman asserts that “success in business involves much more than high levels of academic abilities or technical knowledge often referred to as ‘native knowledge’, and being cognitively intelligent is not a passport to success, if not complimented by emotional intelligence.”

But let us attempt to demystify the topic further. EI in the context of a business set-up includes characteristics like self- awareness and self control, ability to communicate and influence others, ability to build bonds with both employees and customers and the ability to create group synergies, enhance net-working, drive performance and create an environment where innovative ideas can flourish. EI promotes an open working environment where employees are encouraged through effective communication to be creative, innovative not only within the internal operations of the business, but also when dealing with the business current and potential customers. Engaging the whole workforce with a strong vision and providing the necessary support will push the same to the highest level. Emotions are contagious. If the workforce feels engaged to the business, it will in turn reflect this engagement when the workforce deals with the customers.

The divisional walls between top management and lower staff need, within the necessary parameters of prudence, to come down. EI enhances team work where managers lead by influence rather than by command. EI sharpens the skills that leaders need to understand such as the behavior and motivation of co-workers who harbor different values. Effective leaders can then find common ground that can build a cohesive, active team to tackle the tasks at hand. It is to be acknowledged that all humans have basic emotional needs, and negative feelings are sometimes indications of unmet emotional needs. Feelings are real and not debatable and are not to be invalidated by any wise leader since such feelings may be crying out for a forward looking and promising change. Perhaps we can attempt to highlight the major emotional intelligence competencies through the following charts:-

The traditional business manager with low emotional intelligence

Authoritarian- High level of command and control
Meticulous – If it does not fit our system, scrap the idea
Administers – Sees to it that everyone is somehow occupied, even if not so productively
Emotionally insecure – Hides fears, and is highly defensive, having a low emotional literacy being unable to label emotions and validate genuine ones
Suspicious- Does not trust and believes there are hidden motives behind what may be genuine talk
Supervises- Has his eyes on the bottom line, and imitates what is already around

The charismatic business leader with high emotional intelligence

Liberal – partnering, networking, influencing through effective communication and listening skills
Open minded- encourages employees to contribute new ideas and listens attentively to customers pleas
Motivates – Co-ordinates the workforce rather than controls, able to read unverbalised emotions in others
Emotional secure – a sound self-knowledge and awareness, ability to recognize between disruptive emotions and healthy tensions
Empathetic – treats all with respect and thus gains self-respect. Compassionate and ready to self-adjust not only expecting others to do so
Forward-looking- Has his eyes on the horizon, challenges the status-quo and makes space for an open dialogue where new ideas can be explored

And now for the big question…Can EI be mastered? Good news! Yes. But beware, if it isn’t already there, I mean to say, within you, it may take some time. Since EI is not just a repackaging of familiar HR concepts, but rather an ability to bring out the best in ourselves and in others, it requires a period of practice or shall I dare to say, a period of conversion.
First and foremost there must be a disposition to change, or at least its desire. A period of reflection and observance to what goes on around the workplace and what goes on in the customer relations area is necessary. This period of getting ‘in touch’ with the humane side of things as opposed to the usual mathematical formulae for increasing profit may be somewhat tough at the initial stages, but deep down within you is a realization that it is so easy to spend all our time racking the leaves and tend to forget to look at the grandeur of the trees. EI is a process of giving a ‘soul’ to your business. As an accountant with a special interest in spirituality, I dare say that the change within you will not only be beneficial to your business, but first and foremost to your personal life. For what does it profit a man to gain all the things of the world and then lose his soul? As a spiritual guide I tend to view emotional intelligence as nothing else but the message of the Gospel, a message which encourages empathy, compassion, listening to others, validating the feelings of the others and creating an environment where we not only seek to satisfy our desperate cravings but primarily seek the welfare of our workforce, their families and friends who are ultimately, our customers.

(THIS ARTICLE WAS PUBLISHED IN THE EXECUTIVE MAGAZINE – AUTHOR GORDON P VASSALLO)