Assess your emotional intelligence skills, based on Daniel Goleman’s five components of emotional quotient (EQ) in his article, What Makes a Leader (The only resource available What Makes

www.hbr.org

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What Makes a Leader?

by Daniel Goleman

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Included with this full-text Harvard Business Review article:

The Idea in Brief—the core idea

The Idea in Practice—putting the idea to work

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Article Summary

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What Makes a Leader?

A list of related materials, with annotations to guide further

exploration of the article’s ideas and applications

11

Further Reading

IQ and technical skills are

important, but emotional

intelligence is the sine qua non

of leadership.

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What Makes a Leader?

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The Idea in Brief The Idea in Practice

EI Component Defi nition Hallmarks Example Self- awareness

Knowing one’s emotions, strengths, weaknesses, drives, values, and goals—and their impact on others

Self-confi dence• Realistic self-• assessment Self-deprecating sense • of humor Thirst for constructive • criticism

A manager knows tight deadlines bring out the worst in him. So he plans his time to get work done well in advance.

Self- regulation

Controlling or redirecting disruptive emotions and impulses

Trustworthiness• Integrity• Comfort with • ambiguity and change

When a team botches a presentation, its leader resists the urge to scream. Instead, she considers possible reasons for the failure, explains the consequences to her team, and explores solutions with them.

Motivation Being driven to achieve for the sake of achievement

A passion for the work • itself and for new challenges Unfl agging energy to • improve Optimism in the face • of failure

A portfolio manager at an investment company sees his fund tumble for three consecutive quarters. Major clients defect. Instead of blaming external circumstances, she decides to learn from the experience—and engineers a turnaround.

Empathy Considering others’ feelings, especially when making decisions

Expertise in attracting • and retaining talent Ability to develop • others Sensitivity to cross-• cultural diff erences

An American consultant and her team pitch a project to a potential client in Japan. Her team interprets the client’s silence as disapproval, and prepares to leave. The consultant reads the client’s body language and senses interest. She continues the meeting, and her team gets the job.

Social Skill Managing relationships to move people in desired directions

Eff ectiveness in leading • change Persuasiveness• Extensive networking• Expertise in building • and leading teams

A manager wants his company to adopt a better Internet strategy. He fi nds kindred spirits and assembles a de facto team to create a prototype Web site. He persuades allies in other divisions to fund the company’s participation in a relevant convention. His company forms an Internet division—and puts him in charge of it.

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What distinguishes great leaders from merely good ones? It isn't IQ or technical skills, says Daniel Goleman. It's

emotional intelligence:

a group of five skills that en- able the best leaders to maximize their own

and

their followers' performance. When se- nior managers at one company had a criti- cal mass of EI capabilities, their divisions outperformed yearly earnings goals by 20%.

The EI skills are:

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Self-awareness

—knowing one's strengths, weaknesses, drives, values, and impact on others

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Self-regulation

—controlling or redirect- ing disruptive impulses and moods

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Motivation

—relishing achievement for its own sake

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Empathy

—understanding other people's emotional makeup

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Social skill

—building rapport with others to move them in desired directions

We're each born with certain levels of EI skills. But we can strengthen these abilities through persistence, practice, and feed- back from colleagues or coaches.

UNDERSTANDING EI'S COMPONENTS

STRENGTHENING YOUR EI

Use practice and feedback from others to strengthen specific EI skills.

Example:

An executive learned from others that she lacked empathy, especially the ability to listen. She wanted to fix the problem, so she asked a coach to tell her when she exhibited poor listening skills. She then role-played incidents to practice giving better responses; for example, not inter- rupting. She also began observing executives skilled at listening-and imitated their behavior.

For the exclusive use of X. He, 2022.

This document is authorized for use only by Xiufang He in ACCT 3250 FALL 2022 ARTICLES taught by Gretchen Lawrie, Other (University not listed) from Aug 2022 to Dec 2022.

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What Makes a Leader?

by Daniel Goleman

harvard business review • january 2004 page 2

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IQ and technical skills are important, but emotional intelligence is the

sine qua non of leadership.

It was Daniel Goleman who first brought the term “emotional intelligence” to a wide audience with his 1995 book of that name, and it was Goleman who first applied the concept to business with his 1998 HBR article, reprinted here. In his research at nearly 200 large, global companies, Goleman found that while the qualities traditionally asso- ciated with leadership—such as intelligence, toughness, determination, and vision—are re- quired for success, they are insufficient. Truly ef- fective leaders are also distinguished by a high degree of emotional intelligence, which includes self-awareness, self-regulation, motivation, em- pathy, and social skill.

These qualities may sound “soft” and unbusi- nesslike, but Goleman found direct ties between emotional intelligence and measurable busi- ness results. While emotional intelligence’s rele- vance to business has continued to spark debate over the past six years, Goleman’s article re- mains the definitive reference on the subject, with a description of each component of emo- tional intelligence and a detailed discussion of how to recognize it in potential leaders, how

and why it connects to performance, and how it can be learned.

Every businessperson knows a story about a highly intelligent, highly skilled executive who was promoted into a leadership posi- tion only to fail at the job. And they also know a story about someone with solid—but not extraordinary—intellectual abilities and tech- nical skills who was promoted into a similar position and then soared.

Such anecdotes support the widespread be- lief that identifying individuals with the “right stuff” to be leaders is more art than science. After all, the personal styles of superb leaders vary: Some leaders are subdued and analyti- cal; others shout their manifestos from the mountaintops. And just as important, different situations call for different types of leader- ship. Most mergers need a sensitive negotiator at the helm, whereas many turnarounds re- quire a more forceful authority.

I have found, however, that the most effec- tive leaders are alike in one crucial way: They

For the exclusive use of X. He, 2022.

This document is authorized for use only by Xiufang He in ACCT 3250 FALL 2022 ARTICLES taught by Gretchen Lawrie, Other (University not listed) from Aug 2022 to Dec 2022.

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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 mat- ter, but mainly as “threshold capabilities”; that is, they are the entry-level requirements for ex- ecutive positions. But my research, along with other recent studies, clearly shows that emo- tional intelligence is the sine qua non of leader- ship. Without it, a person can have the best training in the world, an incisive, analytical mind, and an endless supply of smart ideas, but he still won’t make a great leader.

In the course of the past year, my col- leagues and I have focused on how emotional intelligence operates at work. We have examined the relationship between emotional intelligence and effective performance, especially in leaders. And we have observed how emotional intelli- gence shows itself on the job. How can you tell if someone has high emotional intelli- gence, for example, and how can you recog- nize it in yourself? In the following pages, we’ll explore these questions, taking each of the components of emotional intelligence— self-awareness, self-regulation, motivation, em- pathy, and social skill—in turn.

Evaluating Emotional Intelligence

Most large companies today have employed trained psychologists to develop what are known as “competency models” to aid them in identifying, training, and promoting likely stars in the leadership firmament. The psy- chologists have also developed such models for lower-level positions. And in recent years, I have analyzed competency models from 188 companies, most of which were large and glo- bal and included the likes of Lucent Technolo- gies, British Airways, and Credit Suisse.

In carrying out this work, my objective was to determine which personal capabilities drove outstanding performance within these organi- zations, and to what degree they did so. I grouped capabilities into three categories: purely technical skills like accounting and business planning; cognitive abilities like analytical rea- soning; and competencies demonstrating emo- tional intelligence, such as the ability to work with others and effectiveness in leading change.

To create some of the competency models, psychologists asked senior managers at the companies to identify the capabilities that typi- fied the organization’s most outstanding leaders. To create other models, the psychologists used

objective criteria, such as a division’s profitabil- ity, to differentiate the star performers at se- nior levels within their organizations from the average ones. Those individuals were then ex- tensively interviewed and tested, and their ca- pabilities were compared. This process resulted in the creation of lists of ingredients for highly effective leaders. The lists ranged in length from seven to 15 items and included such ingre- dients as initiative and strategic vision.

When I analyzed all this data, I found dra- matic results. To be sure, intellect was a driver of outstanding performance. Cognitive skills such as big-picture thinking and long-term vi- sion were particularly important. But when I calculated the ratio of technical skills, IQ, and emotional intelligence as ingredients of excellent performance, emotional intelligence proved to be twice as important as the others for jobs at all levels.

Moreover, my analysis showed that emo- tional intelligence played an increasingly impor- tant role at the highest levels of the company, where differences in technical skills are of neg- ligible importance. In other words, the higher the rank of a person considered to be a star per- former, the more emotional intelligence capa- bilities showed up as the reason for his or her effectiveness. When I compared star perform- ers with average ones in senior leadership posi- tions, nearly 90% of the difference in their pro- files was attributable to emotional intelligence factors rather than cognitive abilities.

Other researchers have confirmed that emo- tional intelligence not only distinguishes out- standing leaders but can also be linked to strong performance. The findings of the late David McClelland, the renowned researcher in human and organizational behavior, are a good exam- ple. In a 1996 study of a global food and bever- age company, McClelland found that when se- nior managers had a critical mass of emotional intelligence capabilities, their divisions outper- formed yearly earnings goals by 20%. Mean- while, division leaders without that critical mass underperformed by almost the same amount. McClelland’s findings, interestingly, held as true in the company’s U.S. divisions as in its divisions in Asia and Europe.

In short, the numbers are beginning to tell us a persuasive story about the link between a company’s success and the emotional intelli- gence of its leaders. And just as important, re- search is also demonstrating that people can, if

Daniel Goleman

is the author of

Emo- tional Intelligence

(Bantam, 1995) and a coauthor of

Primal Leadership: Realizing the Power of Emotional Intelligence

(Harvard Business School, 2002). He is the cochairman of the Consortium for Research on Emotional Intelligence in Organizations, which is based at Rut- gers University’s Graduate School of Applied and Professional Psychology in Piscataway, New Jersey. He can be reached at [email protected]

For the exclusive use of X. He, 2022.

This document is authorized for use only by Xiufang He in ACCT 3250 FALL 2022 ARTICLES taught by Gretchen Lawrie, Other (University not listed) from Aug 2022 to Dec 2022.

What Makes a Leader?

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they take the right approach, develop their emotional intelligence. (See the sidebar “Can Emotional Intelligence Be Learned?”)

Self-Awareness

Self-awareness is the first component of emo- tional intelligence—which makes sense when one considers that the Delphic oracle gave the advice to “know thyself” thousands of years ago. Self-awareness means having a deep un- derstanding of one’s emotions, strengths, weak- nesses, needs, and drives. People with strong self-awareness are neither overly critical nor un- realistically hopeful. Rather, they are honest— with themselves and with others.

People who have a high degree of self- awareness recognize how their feelings affect them, other people, and their job performance. Thus, a self-aware person who knows that tight deadlines bring out the worst in him plans his time carefully and gets his work done well in ad- vance. Another person with high self-awareness will be able to work with a demanding client. She will understand the client’s impact on her moods and the deeper reasons for her frustra-

tion. “Their trivial demands take us away from the real work that needs to be done,” she might explain. And she will go one step further and turn her anger into something constructive.

Self-awareness extends to a person’s under- standing of his or her values and goals. Some- one who is highly self-aware knows where he is headed and why; so, for example, he will be able to be firm in turning down a job offer that is tempting financially but does not fit with his principles or long-term goals. A person who lacks self-awareness is apt to make decisions that bring on inner turmoil by treading on buried values. “The money looked good so I signed on,” someone might say two years into a job, “but the work means so little to me that I’m constantly bored.” The decisions of self-aware people mesh with their values; consequently, they often find work to be energizing.

How can one recognize self-awareness? First and foremost, it shows itself as candor and an ability to assess oneself realistically. People with high self-awareness are able to speak accu- rately and openly—although not necessarily effusively or confessionally—about their emo-

Self-Awareness

Self-Regulation

Motivation

Empathy

Social Skill

Definition

the ability to recognize and understand your moods, emotions, and drives, as well as their effect on others

the ability to control or redirect disruptive impulses and moods

the propensity to suspend judgment – to think before acting

a passion to work for reasons that go beyond money or status

a propensity to pursue goals with energy and persistence

the ability to understand the emotional makeup of other people

skill in treating people according to their emotional reactions

proficiency in managing relationships and building networks

an ability to find common ground and build rapport

Hallmarks

self-confidence

realistic self-assessment

self-deprecating sense of humor

trustworthiness and integrity

comfort with ambiguity

openness to change

strong drive to achieve

optimism, even in the face of failure

organizational commitment

expertise in building and retaining talent

cross-cultural sensitivity

service to clients and customers

effectiveness in leading change

persuasiveness

expertise in building and leading teams

The Five Components of Emotional Intelligence at Work

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tions and the impact they have on their work. For instance, one manager I know of was skeptical about a new personal-shopper service that her company, a major department-store chain, was about to introduce. Without prompting from her team or her boss, she offered them an ex- planation: “It’s hard for me to get behind the rollout of this service,” she admitted, “because I really wanted to run the project, but I wasn’t selected. Bear with me while I deal with that.” The manager did indeed examine her feelings;

a week later, she was supporting the project fully. Such self-knowledge often shows itself in the

hiring process. Ask a candidate to describe a time he got carried away by his feelings and did something he later regretted. Self-aware candidates will be frank in admitting to failure— and will often tell their tales with a smile. One of the hallmarks of self-awareness is a self- deprecating sense of humor.

Self-awareness can also be identified during performance reviews. Self-aware people know—

Can Emotional Intelligence Be Learned?

For ages, people have debated if leaders are born or made. So too goes the debate about emotional intelligence. Are people born with certain levels of empathy, for example, or do they acquire empathy as a result of life’s expe- riences? The answer is both. Scientific inquiry strongly suggests that there is a genetic com- ponent to emotional intelligence. Psychological and developmental research indicates that nurture plays a role as well. How much of each perhaps will never be known, but research and practice clearly demonstrate that emotional intelligence can be learned.

One thing is certain: Emotional intelligence increases with age. There is an old-fashioned word for the phenomenon: maturity. Yet even with maturity, some people still need training to enhance their emotional intelligence. Un- fortunately, far too many training programs that intend to build leadership skills—includ- ing emotional intelligence—are a waste of time and money. The problem is simple: They focus on the wrong part of the brain.

Emotional intelligence is born largely in the neurotransmitters of the brain’s limbic system, which governs feelings, impulses, and drives. Research indicates that the limbic system learns best through motivation, extended practice, and feedback. Compare this with the kind of learning that goes on in the neocortex, which governs analytical and technical ability. The neocortex grasps concepts and logic. It is the part of the brain that figures out how to use a computer or make a sales call by reading a book. Not surprisingly—but mistakenly—it is also the part of the brain targeted by most training programs aimed at enhancing emo- tional intelligence. When such programs take, in effect, a neocortical approach, my research

with the Consortium for Research on Emo- tional Intelligence in Organizations has shown they can even have a

negative

impact on peo- ple’s job performance.

To enhance emotional intelligence, organi- zations must refocus their training to include the limbic system. They must help people break old behavioral habits and establish new ones. That not only takes much more time than conventional training programs, it also requires an individualized approach.

Imagine an executive who is thought to be low on empathy by her colleagues. Part of that deficit shows itself as an inability to listen; she interrupts people and doesn’t pay close atten- tion to what they’re saying. To fix the problem, the executive needs to be motivated to change, and then she needs practice and feed- back from others in the company. A colleague or coach could be tapped to let the executive know when she has been observed failing to listen. She would then have to replay the inci- dent and give a better response; that is, dem- onstrate her ability to absorb what others are saying. And the executive could be directed to observe certain executives who listen well and to mimic their behavior.

With persistence and practice, such a process can lead to lasting results. I know one Wall Street executive who sought to improve his empathy—specifically his ability to read peo- ple’s reactions and see their perspectives. Be- fore beginning his quest, the executive’s sub- ordinates were terrified of working with him. People even went so far as to hide bad news from him. Naturally, he was shocked when fi- nally confronted with these facts. He went home and told his family—but they only con- firmed what he had heard at work. When their

opinions on any given subject did not mesh with his, they, too, were frightened of him.

Enlisting the help of a coach, the executive went to work to heighten his empathy through practice and feedback. His first step was to take a vacation to a foreign country where he did

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