As an accountant, I am fully convinced that our profession is held in high esteem not only within the business community, but also amongst the general public and even amongst regulators. It has, thanks to the hard work put in by the our Institute of Accountants, gained sufficient recognition ranking the accountancy and other related fields amongst the superior professional jobs.

But, according to the American Psychological Association, the legendary dullness of accountants still prevails. It is argued that this dullness is not a product of the work itself, which can prove to be highly fulfilling and challenging, but due to various personality problems.

I am sure we are pretty familiar with the numerous jokes which seem to affirm this negative public perception not of the profession, but of accountants themselves. I came across a few recently: – “When do accountants laugh out loud? ……when somebody asks for a raise; how does an accountant make a bold fashion statement? ….he wears his grey suit instead of the blue; what do accountants do for fun? …..add up the telephone book. I could go on and on which would probably make enjoyable reading, but let me try to get a bit serious about the matter.

As accountants we pride ourselves on the vast technical qualifications and experience, and rightly so. But the expected competencies of our profession go far beyond simply being technically proficient. Studies reveal that the vital ingredients of a successful career have to embrace a strong element of emotional intelligence (EI) and self awareness. As accountants we are expected to possess intrapersonal and interpersonal skills which are the major components of EI. Do we accountants, auditors, financial advisors, consultants really know ourselves and is it important that we do so? How do we make effective use of our skills when communicating with our colleagues and staff, in team building and in fostering good relations with our clients? Do we have the ability to read other people’s signals and react appropriately to them? A recent Journal of Accountancy asserts “Each one of us must develop the mature EI skills required to better understand, empathize and negotiate with other people – particularly as the economy has become more global. Otherwise, success will elude us in our lives and careers,”

Since the concept of EI was first introduced, it has been developed, adapted and embraced by the business world. EI skills have been strongly associated with dynamic leadership, satisfying personal life experiences and success in the workplace. EI is gaining ground to the extent that most university educators are being called to incorporate EI competencies in their university curricula.

But let me dwell deeper on the evolving topic of EI. The concept of EI was first described as a form of social intelligence that ‘involves the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions (Salovey and Mayer). This relatively narrow view of EI was widened to include such competencies as optimism, conscientiousness, motivation, empathy and social competence (Goleman). It was Goleman who extended the concept of EI to the business world, claiming, after long years of research and surveys among global companies that “truly effective leaders and successful careers are distinguished by a high degree of EI”

EI is the most dynamic tool to recognize change and act upon it. EI is about awareness, waking up to that particular reality which energizes us and empowers us to be creative and innovative rather than embracing a dogmatic approach to our work. Our clients are not only interested in our methodical paperwork and filing of returns, but they seek a holistic approach to their business and expect us to bring forward value-added consultations and change. Our staff or colleagues are not only interested in keeping abreast with the latest and almost infinite financial reporting standards, but also seek to establish healthy bonding and active participation with their employers in the decision making process, allowing space where innovative ideas can be put forward with ease and thus promote personal growth. That is where EI comes in. Accountants with low EI fail to grasp opportunities and meet the challenge of evolving trends. Accountants with low EI tend to get wrapped up in meeting deadlines and working endless hours perhaps to pile up more cash. As a result, they deprive themselves in experiencing the joy of a more holistic and balanced lifestyle. To think that life is all about building a cash empire is the greatest illusion.

Interestingly enough, the CPA Journal of the New York State reported, some years back, that “Twenty percent of a person’s success is estimated to be based on what is normally considered intelligence: the ability to learn, understand and reason (IQ). The other eighty percent is based on the ability to understand ourselves and interact with people (EI)”

EI is concerned with understanding oneself and others, relating to people, and adapting to and coping with the immediate surroundings so as to be more successful in dealing with environmental demands. In a way, to measure EI is to measure one’s ‘common sense’ and ability to get along in the world. The problem with ‘common sense’ of course is that it can be quite uncommon. Measuring EI helps to predict success. Success is the ability to set and achieve our personal and professional goals, whatever they may be. EI reflects how a person applies knowledge to the immediate situation, applying logic but not to the exclusion of his or the other party’s emotional stance or needs. Emotions may be signaling the need for a healthy change, be it in particular work practices or perhaps a change in the attitude in the way we relate with our clients, our colleagues or our staff. To invalidate the feelings and emotions of the other may lead to serious sometimes irreversible mistakes.

The Bar-On Emotional Quotient Inventory is the first scientifically validated and most widely used EI assessment in the world. This model measures EI over five composite scales:-

• Intra-personal :- one’s own self-awareness, assertiveness, independence, self-regard, and self-actualization
• Interpersonal: – one’s capacity to exercise empathy, social responsibility, engaging into healthy relationships, listen effectively, present, discuss and defend views, transfer and receive knowledge, negotiate with people, understand group dynamics and collaborate with colleagues.
• Adaptability:- one’s capacity to solve problems, test reality, and exercise flexibility, adapting to changing situations and overcoming obstacles.
• Stress management:- one’s level of stress tolerance and impulse control
• General mood:- one’s state of happiness and optimism.

The importance of EI skills in the accounting workplace is highlighted by the very nature of the job. Accountants work both by themselves and in teams. Personal EI skills of self- awareness, self- regulation and motivation are essential if individuals are to recognize their own strengths and weaknesses, develop good self- esteem, maintain integrity, demonstrate flexibility, take responsibility for their own actions, take initiative and strive for excellence. Interpersonal EI skills such as empathy and social ability are at the heart of handling relationships. They involve understanding the needs of others, implementing successful conflict management strategies, listening and leadership. Thus EI is an essential ingredient for a productive workplace (Smigla and Pastoria)

EI is viewed as a desirable quality as it allows accountants to excel in strategic decision making, teamwork, leadership and client relations. There is also evidence that the Big 4 accounting firms are interested in EI skills development to the extent that they now offer EI skills training to their employees (Deloitte). The global chairman of PwC confirms the importance of EI saying “Technical and analytical abilities will remain relevant, but EI and cultural dexterity will be crucial traits of our future leaders”

EI is not about downgrading or neglecting the core technical skills of the accountant. It is about supplementing those core skills with the skills of EI and self awareness to enable us to offer a value added professional service with enhanced performance and results. EI ensures that professionals are not trapped in self-absorption but encourages altruism beyond the strict boundaries of the core duties and responsibilities of the profession. EI goes beyond the unilateral thinking which is solely directed towards utility and the measurable. It expresses what inspires people deeply, what moves them, what cannot be articulated in exact language.

Can EI be mastered? Yes – but beware, if it isn’t already there, I mean to say, within you, it may take some time.

(THIS ARTICLE WAS PUBLISHED IN THE ACCOUNTANT MAGAZINE IN 2011 – AUTHOR GORDON P VASSALLO)