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The business case for emotional intelligence

26 February 2019

Emotional Intelligence (EI) is not ‘new’ – academics have been studying this subject for the greater part of the twentieth century. In recent times - perhaps since the mid 1990’s - it has become a popular topic as organisations began to appreciate the positive impact that it can have performance and productivity. Did you know for example that:

  • EI is a better predicator of individual success than other relevant previous experience or high IQ
  • 70% of customers are lost for emotional intelligence related reasons (e.g. they didn't like the human side of doing business with the provider of the product / service)
  • Individuals high in EI are more profitable and productive than their counterparts?

Further benefits are highlighted in the diagram above.

What is emotional intelligence?


Emotional Intelligence is how somebody manages their personality to be both personally and interpersonally effective. It is reflected by what a person does in the present moment and therefore is described as a verb; it is about being emotionally intelligent.
Emotional intelligence is about:

  • Our attitudes
  • Our emotional awareness (this applies to one’s own feelings and those of others)
  • Our ability to self-manage
  • Our relationships (with ourselves and with others)

Emotional intelligence in the workplace


An organisational climate – ‘the way it feels to be in an organisation’ - is related to the leadership and management style of the leader(s). With a direct link to the leader’s emotional intelligence, an organisational climate significantly influences individual engagement, performance and well-being. Organisations with emotionally intelligent climates are more likely to have increased levels of employee morale and enthusiasm leading to increased levels of performance.

But it is not just the leader’s / manager’s emotional intelligence that matters. There is clear evidence that Emotionally Intelligent teams are more likely to be:

  • Open and attentive towards one another leading to strong and effective collaborative relationships and;
  • United by a shared confidence, more motivated and engaged in whatever it is doing thus helping the team to perform well and achieve what it sets out to do.

Leadership and EI


Leaders are central to ongoing success, competitiveness and resilience of the organisation. Research has found that the primary causes of derailment in executives involve deficits in emotional intelligence. The three primary ones are difficulty in handling change, not being able to work well in a team, and poor interpersonal relations. Furthermore, recent polls 75% of employees consider their direct manager to be the “worst part of their job" and bad management is cited as the number one reason for leaving a job.

The bottom line


With its ability to create resilient, collaborative, motivated, empathetic, engaged and effective individuals and teams and to increase performance and productivity it is easy to understand why many organisations are looking to become more emotionally intelligent.

Emotional Intelligence Leadership Development


Like any skill, Emotional Intelligence can be developed and it takes practice. Noticing and managing our attitudes, emotions and behaviour in a changing social context is a continual process.

Our own courses here at PSP Training Services are run by a highly qualified and very experienced facilitator. In 2017, she completed her Doctorate in Business Administration, specialising in understanding how people make sense of work within complex environments. As an accredited JCA Distribution Partner our course draw on a powerful combination of tools and techniques to enable transformational change.

Our Leadership Development programmes help individuals to unlock their leadership potential and create sustainable leadership effectiveness. Working with input from questionnaires (including individual emotional intelligence and personality profiling) we provide a safe, challenging and collaborative space to enable leaders to gain personal insight. We support them in developing strategies and techniques to apply their skills and strengths to their unique workplace challenges and help them reach their leadership potential.

Our Top Team Development Programmes.

Top Teams have the power to make or break an organisation, the way in which the team works together sets the tone for how others behave and collaborate. We tailor our team solutions to suit your needs to enable transformational change starting for equipping individuals with the awareness and strategies to lead themselves before moving onto Team EI and Organisational Climate.