The Importance of Emotional Intelligence in Leadership

Technical expertise and strategic thinking are key skills for effective leadership – these are all part of what we call cognitive intelligence (that is the one that says “you’re very clever”). And if you’ve reached the top echelons of your organisation, you undoubtedly possess these key skills and are extremely “clever”. 

But what if you could take things up a few more notches, and be an even more effective leader, simply by honing one skill – your emotional intelligence? Perhaps you believe you’ve mastered emotional intelligence already – after all, we all have emotions, we all know what emotions are and we all feel emotions. But, incredibly, while all humans do indeed experience emotions, only 36% of us are able to accurately identify them as they occur. And because unlabelled emotions often lead to bad choices and counterproductive actions, this is bad news for leadership.
Perhaps even more surprising is that in a survey of 155,000 leaders, only 22% were found to have strong emotional intelligence. Where in that statistic do you believe you sit?

In the workplace, emotional intelligence demands the ability to connect with people, inspire trust and manage complex interpersonal dynamics. At the core of this capability is a skill set enabling leaders to understand and manage their own emotions while fostering meaningful relationships with others.

This blog post explores the significance of emotional intelligence in leadership, its impact on business success, and how as leaders you can cultivate this critical skill to unlock your true leadership potential.

What Is Emotional Intelligence?

Emotional intelligence refers to the ability to recognise, understand and – this is extremely important – regulate one's emotions while also being attuned to the emotions of those around them. The term, which was first popularised by psychologist Daniel Goleman in 1995, encompasses five key components:

Component Definition Example Statement
Self-awareness Understanding your emotional strengths and limitations. “I'm feeling overwhelmed, so I'll take a break and revisit this with a clear head tomorrow morning."
Self-regulation Managing impulses and maintaining emotional control. "My initial reaction feels negative, but I’m going to focus on the bigger picture instead of acting on impulse."
Empathy Recognising and respecting others' feelings. "I can tell this is important to you, and I want to fully understand your perspective."
Social Skills Building and maintaining strong interpersonal relationships. "Let’s find a solution together; I value what you bring to the table."
Motivation Staying driven to achieve goals despite setbacks. "This didn’t work out the way I hoped, so I’m going to adjust my approach and try again."

These traits form the foundation of emotional quotient, which is a measurable aspect of emotional intelligence. Leaders with a high emotional quotient are true champions at creating trust and collaboration, which are key components of team cohesion and productivity.

Why Emotional Intelligence in Leadership Matters

So how does EQ drive success in leadership? Let’s look at some examples.

1. It Boosts Team Dynamics

Consider Raj, a senior manager at a fast-paced tech company. His team was struggling with low morale after a failed product launch. Instead of focusing solely on the technical and factual issues, Raj took time to empathise with his team’s frustrations. He asked them how they felt and listened to their concerns. Because Raj addressed emotional needs, he was able to rebuild trust and re-align the team’s goals. His staff began to feel motivated as a result.

This approach is a hallmark of emotional intelligence in business: understanding and addressing human factors to create better outcomes.

2. It Supports Transformative Leadership

Transformative leaders inspire change by creating a shared vision. This requires them to deeply connect with people’s values and emotions. Through EQ, learn to engage authentically with their teams, building a sense of purpose and commitment. The 5Qs framework highlights the interplay between EQ and other intelligences – such as resilience (RQ) and moral intelligence (MQ) – to build a well-rounded leadership approach that drives sustainable transformation.

The Business Impact of Emotional Intelligence in Leadership

As Goleman told the Harvard Business Review in 2015, “The most effective leaders are all alike in one crucial way: They all have a high degree of what has come to be known as emotional intelligence. It’s not that IQ and technical skills are irrelevant. They do matter, but...they are the entry-level requirements for executive positions.”

So what are the specific benefits of C-level leaders being skilled in emotional intelligence?

1. Better Decision-Making

Emotionally intelligent leaders are adept at tapping into their empathy and self-awareness to consider diverse perspectives. This leads to decisions that balance business objectives with the well-being of employees, which in turn builds a positive work environment.

For example, during organisational restructuring, a leader with high EQ would make an extra effort to communicate transparently so as to reduce anxiety among staff.

2. Better Employee Engagement

Research has found that leaders with strong EQ are more trusted by their employees. This is because employees, unsurprisingly, value feeling seen and heard. 

3. Better Conflict Resolution

Conflict is inevitable in any workplace – high stakes, high pressure and multiple personality types will always make sure of this. Leaders with a high emotional quotient can skillfully de-escalate tensions by empathising with opposing viewpoints and finding solutions that satisfy all parties. This ability serves to resolve immediate issues and fortify team relationships in the long term.

Cultivating Emotional Intelligence for Leadership Success

Developing EQ is a continuous journey that involves self-reflection, practice and feedback from others. Here are some actionable steps leaders can take:

1. Invest in Self-Awareness

Take time to reflect on your emotional triggers, biases and communication style. Are you judgemental of those you deem less intelligent than you? Do you have a tendency to formulate your responses before your interlocutor has finished what they’re saying? Tools like the 5Qs leadership development assessments can provide valuable insights into your emotional strengths and areas for growth.

2. Practise Active Listening

Empathy starts with listening. Focus on understanding the emotions behind people’s words, not just the content. Cues will come from reflections in their voice, their facial expression, and more – how good are you at really reading people? Practise as much as you can to build trust and strengthen your interpersonal connections.

3. Build Emotional Resilience

Emotional resilience is a key component of EQ. Three ways leaders can boost resilience are by maintaining a growth mindset, seeking constructive feedback and using setbacks as opportunities to learn for next time.

4. Use the 5Qs Framework

The 5Qs framework offers comprehensive tools like the 5Qs Pulse assessment, which evaluates leaders across five intelligences, including EQ. These insights help leaders like you refine their leadership skills and achieve greater leadership effectiveness.

INTERESTED TO KNOW MORE ABOUT YOUR OWN LEADERSHIP SKILLS – AND POTENTIAL?