Emotional Intelligence: “EQ”: What it is & Why it matters.

1. WOODS CREEK CONSULTING COMPANY The Technology Executive Leadership Academy “TELA” Emotional Intelligence: “EQ”: What it is & Why it matters. MJ (Mary) Harwood 4/19/10 – Bellevue, WA

2. Criticality?___% Career Influence(to you and your direct reports . . . ) 1994 Center for Creative Leadership Study

3. Today’s goal:EQ’s role inPerformance Agenda I. EQ definition/success correlation statistics II. Brain anatomy/neuro-science III. Why now – the times, the ROI V. Leadership Implications And misc. “taste test” exercises along the way!

4. Business Outcomes: 3 Levels - 3 Layers of InfluenceThe Offering - The Operation - The PeoplePeople = Human Dynamics = EQ Fully interrelated/causal: what happens at one level, affects the other two. • Individual Level • Talent • Attitude • Skill • Team Level • Synergy/Trust • Output • - Innovation • Organization Level • Alignment • Resiliency • Culture What’s key: Knowing what’s going on that’s affecting the ‘human dynamic thread’ & adjusting as needed:competency in human dynamics. Adapted from 6Seconds.org

5. Why it matters . . .Employee research statistics: ____% Respected and valued ____% Would leave current job ____% Ability to double productivity ____% Level of employee engagement Emotional Intelligence Quickbook – Travis Bradberry, Ph.D.

6. IQ and EQ . . . In the workplace, this is often what shows itself and what we evaluate; But this is often the real influencer and responding to this has much more power. EQ defined . . .

7. What it is . . . • EQ (human dynamics) - in its simplest form is: Personal & social competence.Shows up as interpersonal skill. “How leaders handle themselves and their relationships”.Daniel Goleman, Ph.D. • EQ Requires: Awareness and deliberate use ofBOTH emotional AND intellectual data to influence thoughts, feelings, actions. • Judged by: Ability to “connect” with others – to create and maintain positive “connections” w/others. Ability tocreate resonance.(Not about: charisma/trying to make people happy/being “fun”) • EQ Behavior- the ability to: “Talk so people will listen, listen so people will talk.”Travis Bradberry, PH.D. Puppets/Water Cooler/Pay now-later further defined . . .

8. EQ (i.e. EI) – “Interpersonal Skill” – Overview The ability to make others feel like they matter: The ability to “connect”. Personal Competence: Managing ourselves. INTRA-personal skills: 1. Self Aware 2. Self Managed “Catch & Control” Social Competence: Managing relationships. INTER-personal skills: 3. Understands Others 4. Social/Relationship Skills “Sense & Respond” (15-20 “sub-competencies”)

9. Examples of EQ Sub-competencies – • Handles Conflict Well • Stress Tolerant • Socially Aware • Organizationally Aware • Emotional self awareness • Persuasive/Influential/inspiring • Self Controlled/managed • Interpersonal rel. builder • Good Communicator/Listener • Upbeat/Enthusiastic • Empathy • Assertive • Confident • Optimistic • Change Catalyst • Independent • Achievement Drive/Initiative • Intuitive/Can Read Others • Adaptable/Flexible/Resilient • Problem Solver Definitions/appendix . . .

10. Sub-competencies – Workplace Application Examples 1. “Understands Others/empathy”:Customerempathy . . . - Cosmetic vs. technical solutions – when one may need to prevail - ‘Framed” responses vs.“No fix available” black/white . . . The need to frame the negative news leaving hope, trust, confidence in the company w/o deceiving /pointing fingers– maintaining the relationship. 2. And managing change: “Resilience/flexibility/adaptability/optimism” . . . . on change . . .

11. Change management . . . Not an option. “Because of the explosive nature of exponential growth, the twenty-first century will be equivalent to 20,000 years of progress at today’s rate of progress: about 1000 times greater than the 20th century. . . . Today, it’s as if we’re driving 200 mph and only looking into the rear-view mirror.” Ray Kurzweil, Inventor and Futurist as quoted in The Futurist, 2011 Rigidity, a lack of resilience and pessimism will suffocate the required innovation to survive.

12. IQ EQ Back to “Why it matters” - . . . con’t. EQ performance Impact: Success correlation: ?? %of “star” performers withhigh EQ?? (In ALL roles)

13. The correlation between EQ and success:High Performers:90%also have high EQ. The Business Case for Emotional Intelligence White Paper/TalentSmart 2005 Emotional Intelligence Quick Book, Travis Bradberry, Ph.D., 2005, 500k ind./multi year study.

14. The correlation between EQ and success - con’t. Compared to IQ?? Influence on “Life/Work” success vs. academic predictor: IQ: 0% - 20% (common workplace levels) EQ: 30% - 80%(2-6 x IQ) including scientists!* (0% correlation between IQ and EQ) From ‘Working Relationships’ by Bob Wall; 1950/U of CA 40 yr. Study; 85 PhDs.

15. The correlation between EQ and success - con’t. • EQ - IQ –Expertise: • All threeessential for effective performance for hiring, • careers, and promotion decisions. To what degree? • For starperformers andsuperior leaders: • EQ Influence on performance: ___%? • IQ & Expertisecombined __ %?

16. EQ Skill The correlation between EQ and success - con’t. Essential Performance Abilities: Star Performers: 67% EQ,33% IQ/Expertise. (Team bldg., leveraging diversity, adaptability, change catalyst) For Superior Leaders: 80-90% EQ. 90% - Working With Emotional Intelligence, 1998, Daniel Goleman, Ph.D. 80% - The Business Case for Emotional Intelligence White Paper/TalentSmart 2005 1 hr. vs. 3-5 IQ not #1/3

17. “EQ - single greatest predictor of great leadership and employee performance.” Per a Goleman study, 80% of F-500 have/are implementing “emotional intelligence” skill building/requirements in their environments. It also matters because it’s being used. Some examples . . .

18. New yardstick identifying potential leaders and those likely to “derail” Promotion criteria Interview questions, creation and employee hiring decisions Job “star performance” profiling and subsequent competence models (hiring and training) Systemic/process/policy changing: perf. reviews, leadership requirements, reward systems, etc. Top gun pilot selection “Survivor” contestant screening! How it’s being used . . .

19. Teams of 5 each. Count off and group together! .

20. 3 min. Select a recorder for each team . . . Teams #1 & #3 Team #2

21. How was it?

22. Why collaboration works: • ‘Understanding others’ and the impact of positive interaction. • Enhanced TEAM EQ. • Rewards beyond performance perfection. • - From the musicians level of fulfillment • - From the listener’s level of fulfillment • - A single instrument can not attain the power of a full band. • “Joy shared is doubled. Misery shared is halved.”

23. The Science Behind it: So much for “soft” skills.

24. The Hemispheres . . . Left Hemisphere Rational Brain Neocortex “Thinking Center” IQ Right Hemisphere Emotional Brain Limbic system (amygdala) “Emotional/Intuition Center” EQ

25. Understand the hemispheres – con’t. Left Hemisphere Rational Brain Neocortex “Thinking Center” IQ Analysis Abstract reasoning Technical expertise Fact recall Calculations Spatial logic Language center Operates by logic

26. Understand the hemispheres – con’t. Right Hemisphere Emotional Brain Limbic system (amygdala) “Emotional/Intuition Center” EQ Impulse control/stress toler. Feelings/intuition Empathy and optimism Ability to influence//initiative Ability to work w/others/to lead Flexibility/adapt to change Creativity Operates automatically

27. Right/Left Brain Influence Rational Brain Emotional Brain Behavior Rational and Emotional Braininterconnected - constant feedback to one another on what to think, feel, do. Degree varies! We need both limbic and logic - balancedinput is the key. Note:6 seconddelay- E=80kfaster/jet-snail.

28. Emotions - Why “self awareness” is so critical: In effect, emotion alerts the brain and influences: • Attention (important?) • Interpretation (good/bad?) • Recall/memory (slanted in our favor?) • Prediction (optimistic?) • Decision-making (overshadowed? Exec. hiring avg.) • Constructive or destructive thinking and actions White noise or insight ? The rational mind justifies the emotional mind – not always accurately . It is exceptional at making self/other blameless or blameworthy. Demand a balance of reason and emotion. Har.Bus.Sch. – cost/value

29. Words . . . an exercise! Setting the scene . . .

30. “Primed for Action” Scrambled sentence test. • him was worried she always • from are Florida oranges temperature • sunlight makes temperature wrinkle raisins. • shoes give replace old the • he observes occasionally people watches • be will sweat lonely they • sky the seamless gray is • us bingo sing play let From Blink, M. Gladwell

31. “Primed for Action” Scrambled sentence test. • him was worriedshe always • from are Floridaoranges temperature • sunlight makes temperature wrinkleraisins • shoes give replace old the • he observesoccasionally people watches • be will sweat lonelythey • sky the seamless grayis • us bingosing play let Professor/Hooligan . . . we shape attitudes

32. Another example . . . Situation: • 1995; Molly Howard ; New high school in Louisville, Georgia. • 80% of school’s population lived in poverty • 15% of previous high school went on to college • Teacher’s & students - defeatist attitude – this is how it is now and will be going forward Approach: • Physical and curriculum changes • Very impactful change in the grading system: A B – C and “NY” vs. No Ds or Fs allowed. Getting a D or F was an easy way out . .bad, but at least done. In the NY system, no stopping. • Dramatic improvements – selected US Prin. Of the Year out of 48k nominees. Switch, by Chip and Dan Heath, 2010 Perf. Reviews???? Mindset is so influential

33. Understanding the hemispheres – con’t. Why workplace stories, tee shirts, code names & slogans? Fluff? Entertainment? Marketing spin? No. They simply “Work”! And they work because they tap into BOTH hemispheres .

34. EI is Tapping into both IQ & EQ for optimal results Left HemisphereAnalysis: Logic/Content/Sequential the 1000 words – data - the eye chart Right Hemisphere Synthesis: Feeling/Context/Simultaneous the picture (80k faster): feeling N.R. (Innovation/engagement center!) Logic makes people think – emotion makes people act. Red Buttons . . From Encouraging the Heart./Kouzes Tapping into both . . .

35. The value of tapping into the “whole” person : From Source: Bandura, A., and Cervone, D. “Self-Evaluation and Self-Efficacy Mechanisms Governing the Motivational Effects of Goal Systems.” Journal of Personality and Social Psychology, 1983, 45, pp. 1017-1028.

36. From the book SWITCH – appreciate the relativeinfluence of our rational and our emotional . . . DIRECT the RATIONAL Rider CONNECT with the EMOTIONAL elephant. SHAPE the path to help them both. The glove story . . . Visualize if you will . . .

37. The neuro-science . . . 4 facts: how our `limbic’ influences our logic – why performance is effected . . . • 1. Hormones and “Flooding” –“emotional hijacking” – 6 sec. delay – work stress influence (#1 - poorly given feedback) • 2. Open loopsystem physiology (leaders beware!)– 4-6’/15 min.(& 3 level potential effect) • 3.The “science” behindfun(hi EQ Teams +29%/laugh 3x) • Good moods enhance neural activity - accelerate connections. • “Attitudes are contagious. Is yours worth catching?” • an exercise . . .

38. The exercise . . .A Quiz! 4min. Gauging the “Levity Quotient” (LQ!) of your culture Ratings: 1 = never 2 = hardly 3 = neutral 4 = most of the time 5 = just about always Circle your answers/ratings: e.g. “New employees are made to feel welcome.” 1 2 3 4 5 Briefly compare with DIFFERENT neighbor! The Levity Effect/Bostick

39. Laughter is also the quickest route to social bonding. “Laughter is like an instant vacation”. Milton Berle

40. The neuro-science - con’t. 4 facts: how our `limbic’ influences our logic – why performance is effected . . . • Hormones and “Flooding” • Open loop system physiology • The “science” behind fun • Non-verbal power . . . • Body language is ___% of the conversation?

41. The 1,000 words . . .

42. A simple example . . . Commuting . . . Consider the experience . . . calm tense angry And did you enter work feeling this way?!!

43. Neuro-science – con’t. • Non-verbal power: 50-80% of the conversation • Why . . . • Conscious MINDcan process126bits of info. per second and 40bits of speech. • Our SENSES can receive up to 10 MILLION bits of input per second. • Limbic - 80,000 x faster - Simultaneous processing. We leave an emotional “wake” Consciously project & collect. Emotional radar knob – turn it up! Email?(More said – no facial ck./bal. – need to compensate!) Meeting Electronics? (“feel” unheard; commitment/engagement lessens) Texting??? (not bothering to get the full message) Executive EQ, Emotional Intelligence in Leadership and Organizations” (1997) by Robert Cooper, Ph.D. and Ayman Sawaf /88-89

44. The order of effectiveness . . . 1. 2. 3. • E-mails(14.5 hrs/wk),text, and voicemail appearefficient,but they don’t necessarily develop trust without careful attention. • Trust /”truth” happens mostly when there is face-to-faceTWO-WAY communication . . . Caring and Listening. “Communication works for those who work at it.” John Powell

45. Stretch Break?!

46. Limbic Prep Exercise

47. The Limbic and the Knee . . . what they have in common?

48. Why now? (AMA, MBA Schools, etc. . . . ) The Times and the Research. By nature a social species: the human genome has evolved .02% in the past 40,000 years. Dr. Robert Cooper, Ph.D.

49. Why EQ now? IQ no longer enough.The Times: • “Permanent White Water Environment” Flexibility – innovation required to survive.(E.g. competition a moving target – on line legal tools, blog/viral marketing, etc.) 30% mkt. adoption: phone 38; PC-13; I-net 7; IPod __? • Less Time/More Work/Less people: Need to quickly and regularly prioritize – need to determine the “right things to do (there will always be too many). Judgment required (self/customer/org.)– rarely a list provided. • Teamwork requirement: +3x– Data overflow – data dynamic Collaboration critical. (Plus temp. employees; global reach, etc.- less direct control) • Multi-generational:Different values – different needs/demands. Embrace. • Currency of the past = “knowledge is power”. For the millennium “trust”is power – a.k.a. “emotional/social capital” the new currency. And trust requires “effectively connecting – EQ. The research . . .

50. Why now? con’t.The Business Outcomes Research ROI $$$ • Top 10% programmers exceed average performers in producing effective programs by 320%(teamwork, etc.) • Amex. Financial Advisors – pilot test of EQ/optimism training helped produce a rise in sales in just 3 months; • 105 top sales people studied from 44 Fortune 500 companies. Avg. sales per year for them was TWICE “avg.”(relationship skills). High EQ execs. average +20-24% in productivity/$ - (250k avg.) for their areas. (QB) • U.S.A.F. Recruiter retention rate was 50%. Used EQ-I tool to identify EQ profile, hired/trained to that, recruiter retention rate is now??%. 10k investment, 2.7 mil. savings in one yr. Leaders survey: “What are the top issues facing you at work?” 76% people/relationship – 24% finance/technical side.6seconds.org • and customers?? . . .