The Technology Executive Leadership Academy TELA Emotional Intelligence

The Technology Executive Leadership Academy “TELA” Emotional Intelligence – “EQ”: The Critical Differentiator for Great Leadership. What it is & Why it matters. 6/10/09 – Bellevue, WA MJ Harwood, Exceptional Horizons © 2006 Exceptional Horizons Inc. All rights reserved.

Criticality? ___% Career Influence (to you and your direct reports. . . ) 1994 Center for Creative Leadership Study © 2006 Exceptional Horizons Inc. All rights reserved

Today’s goal: Performance Insight Agenda I. EQ definition/success correlation statistics II. Brain anatomy/neuro-science III. Why now V. Leadership implications And misc. exercises along the way! © 2006 Exceptional Horizons Inc. All rights reserved

Business Outcomes: 3 Levels/3 Layers of Influenc The Offering - The Operation - The Human Dynamics Human Dynamics = EQ Fully interrelated/causal: what happens at one level, affects the other two. Team Level - Synergy/Trust - Output - Innovation Individual Level - Talent - Attitude - Skill 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 6 Seconds. org © 2006 Exceptional Horizons Inc. All rights reserved

Why it matters. . . Employee research statistics: ____% Respected and valued ____% Would leave current job ____% Ability to double productivity ____% Level of employee engagement © 2006 Exceptional Horizons Inc. All rights reserved

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 of BOTH emotional AND intellectual data to influence thoughts, feelings, actions. • Judged by: Ability to “connect”: to cause “resonance vs. dissonance”. (Not about: charisma – trying to make people happy – being “fun”) “Talk so people will listen, listen so people will talk. ” Travis Bradberry, PH. D. Puppets/Water Cooler/Pay now-later further defined. . . © 2006 Exceptional Horizons Inc. All rights reserved

EQ (i. e. EI) Further Defined Personal Competence: Social Competence: Managing ourselves. INTRA-personal skills: 1. Self Aware 2. Self Managed “Catch & Control” Managing relationships. INTER-personal skills: 3. Understands Others 4. Social/Relationship Skills “Sense & Respond” Breaks down into 15 -20 “sub-competencies” Appendix. . © 2006 Exceptional Horizons Inc. All rights reserved

Workplace Example. . . Understands Others/empathy: Customer empathy. . . Doc – vs. graphs/charts © 2006 Exceptional Horizons Inc. All rights reserved

Why it matters. . . EQ success correlation: ? ? % of “star” performers with high EQ? ? (In ALL roles) © 2006 Exceptional Horizons Inc. All rights reserved

The correlation between EQ and success: High Performers: 90% also have high EQ. The Business Case for Emotional Intelligence White Paper/Talent. Smart 2005 Emotional Intelligence Quick Book, Travis Bradberry, Ph. D. , 2005, 500 k ind. /multi year study. © 2006 Exceptional Horizons Inc. All rights reserved

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) © 2006 Exceptional Horizons Inc. All rights reserved

The correlation between EQ and success - con’t. EQ - IQ – Expertise: All three essential for effective performance for hiring, careers, and promotion decisions. To what degree? For star performers and superior leaders: EQ Influence on performance: ___%? IQ & Expertise combined __ %? © 2006 Exceptional Horizons Inc. All rights reserved

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. EQ Skill 90% - Working With Emotional Intelligence, 1998, Daniel Goleman, Ph. D. 80% - The Business Case for Emotional Intelligence White Paper/Talent. Smart 2005 1 hr. vs. 3 -5 IQ not #1/3 © 2006 Exceptional Horizons Inc. All rights reserved

Leadership Attitudes and Insights An Exercise! 2 Teams: Team #1: Team #2: © 2006 Exceptional Horizons Inc. All rights reserved

How was it? © 2006 Exceptional Horizons Inc. All rights reserved

Understanding others: “Delegating – collaborating”: rewards beyond performance perfection. - From the musicians level of fulfillment - From the listener’s level of fulfillment - A single instrument can not attain the heights of a full orchestra. “Joy shared is doubled. Misery shared is halved. ” © 2006 Exceptional Horizons Inc. All rights reserved

The Science Behind it: So much for “soft” skills. © 2006 Exceptional Horizons Inc. All rights reserved

The Hemispheres. . . Left Hemisphere Rational Brain Right Hemisphere Emotional Brain Neocortex “Thinking Center” IQ Limbic system (amygdala) “Emotional/Intuition Center” EQ © 2006 Exceptional Horizons Inc. All rights reserved

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 © 2006 Exceptional Horizons Inc. All rights reserved

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 © 2006 Exceptional Horizons Inc. All rights reserved

Right/Left Brain Influence Rational Brain Emotional Brain Behavior Rational and Emotional Brain interconnected - constant feedback to one another on what to think, feel, do. Degree varies! We need both limbic and logic - balanced input is the key. Note: 6 second delay - E=80 k faster/jet-snail. © 2006 Exceptional Horizons Inc. All rights reserved

Emotions. . . Why “awareness” is so critical: In effect, emotion alerts the brain and influences: Attention Interpretation Recall/memory Prediction Decision-making Constructive or destructive thinking and actions Behavior (e. g. hiring influence – Exec. hiring batting avg. . . ) White noise or insight ? The rational mind justifies the emotional mind – not always accurately . Demand a balance of reason and emotion. Harvard Bus. Sch. E. g. . © 2006 Exceptional Horizons Inc. All rights reserved

Words. . . an exercise! Setting the scene. . . © 2006 Exceptional Horizons Inc. All rights reserved

“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 © 2006 Exceptional Horizons Inc. All rights reserved

“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 Professor/Hooligan. . . Leaders shape © 2006 Exceptional Horizons Inc. All rights reserved

Workplace stories – visuals - code names – slogans. . . Entertainment? Marketing spin? No. They simply “Work”! They tap into both hemispheres. . . © 2006 Exceptional Horizons Inc. All rights reserved

EI is Tapping into both IQ & EQ for optimal results Left Hemisphere Analysis: Logic/Content/Sequential the 1000 words - seeing the eye chart Right Hemisphere Synthesis: Feeling/Context/Simultaneous the picture (80 k faster): feeling N. R. (Innovation/engagement center!) Logic makes people think – emotion makes people act. The Ritz Carlton. . . Green/Red Buttons. . . © 2006 Exceptional Horizons Inc. All rights reserved

The value of tapping into the “whole” person. . . From Source: Bandura, A. , and Cervone, D. “Self-Evaluation and Self-Efficacy Mechanisms Governing the Motivation Effects of Goal Systems. ” Journal of Personality and Social Psychology, 1983, 45, pp. 1017 -1028. © 2006 Exceptional Horizons Inc. All rights reserved

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/inept criticism) 2. Open loop system physiology (leaders beware!) – 4 -6’/15 min. (& 3 level potential effect) 3. The “science” behind fun (hi EQ Teams +29%/laugh 3 x) The more positive the mood of a group leader, the more positive, helpful, and cooperative are those in the group. WWEI/186 Good moods enhance neural activity - accelerate connections. . 4. Non-verbal power © 2006 Exceptional Horizons Inc. All rights reserved

Neuro-science – con’t. The limbic and non-verbal power: Body language is ___% of the conversation? © 2006 Exceptional Horizons Inc. All rights reserved

The 1, 000 words. . . © 2006 Exceptional Horizons Inc. All rights reserved

A simple example. . . Commuting. . . Consider the experience. . . Calm tense angry And did you enter work feeling this way? !! © 2006 Exceptional Horizons Inc. All rights reserved

Neuro-science – con’t. Non-verbal power: 50 -80% of the conversation Why. . . n Conscious MIND can process 126 bits of info. per second and 40 bits of speech. n Our SENSES can receive up to 10 MILLION bits of input per second. n Limbic - 80, 000 x faster - Simultaneous processing. Consciously project & collect. Emotional radar knob – turn it up! Email? (more said – no facial ck. /bal. ) Executive EQ, Emotional Intelligence in Leadership and Organizations” (1997) by Robert Cooper, Ph. D. and Ayman Sawaf /88 -89 © 2006 Exceptional Horizons Inc. All rights reserved

The Limbic and the Knee. . . what they have in common. © 2006 Exceptional Horizons Inc. All rights reserved

Limbic Prep Exercise © 2006 Exceptional Horizons Inc. All rights reserved

Why now? (AMA, MBA Schools, etc. . ) • The Times • The Business Outcomes Research • The Leadership Research By nature a social species: the human genome has evolved. 02% in the past 40, 000 years. Dr. Robert Cooper, Ph. D. © 2006 Exceptional Horizons Inc. All rights reserved

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 __? • Teamwork requirement: +3 x – Data overflow – data dynamic Collaboration critical. (Plus temp. employees; global reach, etc. - less direct control) • Multi-generational: Different values – different needs/demands • 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. . . © 2006 Exceptional Horizons Inc. All rights reserved

Why now? 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). • 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 ? ? %. 10 k investment, 2. 7 mil. savings in one yr. and customers? ? . . . (Per a Goleman study, 80% of F-500 Training EQ) © 2006 Exceptional Horizons Inc. All rights reserved

Why now - con’t. The Customers: 70% Customers lost traced to EQ (Forum Corp. 1989 -1995) Relationship Issues Prod/etc. Issues © 2006 Exceptional Horizons Inc. All rights reserved

Why now - con’t. The Leadership Research. But first. . © 2006 Exceptional Horizons Inc. All rights reserved

6 min. (then break!) Leadership Insight - An Exercise! Leader’s EQ Mini-assessment (Education and EQ Indicator) 1 – 5: Very Weak to Very Strong – a Snapshot TEAM’S perception of how well you. . . Value and invite feedback; Develop others; Surface conflict, etc. © 2006 Exceptional Horizons Inc. All rights reserved

Why now - con’t. The Leadership Research: Competence, Character, Caring. Leadership IQ/EQ Fusion Before being followed – others ask: 1. Do you know what you’re doing? (Competence) 2. Can I trust you? (Character) 3. Do you care about me? (Caring) D. A. Benton in Secrets of a CEO Coarch/1999. Italics, Exceptional Horizons, Inc. “People first follow the person, then the plan. “ If you don’t believe in the messenger, you won’t believe the message. The Leadership Challenge/Kouzes & Posner. 5 Findings . . . © 2006 Exceptional Horizons Inc. All rights reserved

5 EQ Leadership Findings. . . the implications are profound. 1. “Leaders spend 25% of their careers on decision-making and 75% on interpersonal work. ” Interpersonal skill level strongly influences results. Robert Cooper, Ph. D. /Executive EQ – 37%/nonpmngr. Mtgs. 2. W/W study - 75% accuracy, climate alone enabled “sorting” companies with high vs. low profits/growth. 50 -70% source of climate traced to leader. (Financial results effected +/- 20 -30% with hi/low EQ) The EIQB. 3. People pay more attention to the leaders - tend to mimic. A crucial dimension of leadership: emotional wake - positive or toxic (“open loop” limbic). A leader’s self/mood management effects others, effects business. © 2006 Exceptional Horizons Inc. All rights reserved

Leadership Findings - con’t. 4. Star Leaders/performers know their strengths /weaknesses- intentionally seek out feedback: EQ, Style, 360, others – they have to if they want it. Coopers & Lybrand study – Fortune 500 Companies: 11% CEOS believed the message of bad news took a real risk; 33% of middle- management; 50% of employees! ? ? ? Disease. 5. Impact of leaders: critical to stay/go employee (i. e. TALENT) decisions (3 studies/3 years): #1 reason high-tech workers listed: good/poor manager & respect. CCL &- Corporate Leadership Council Report/1998/Survey with High Value EEs – same results. © 2006 Exceptional Horizons Inc. All rights reserved

Why now - con’t. Leadership Findings - con’t. “By 2010 there will be a 10 Million employee shortage. . . Employers in the technology industries will be the first to suffer from unfilled positions. ” From “Crucial Trends and How They’ll Impact Your Business” 8/04: 75 m. BB Exit/45 m. X. Simply put, competition for top performers will be intense. Per TRENDS, 50% of F-500 have business coaches – multi-levels “Subordinates and peers (vs. bosses) appear to have the most predictive validity of a leader’s actual effectiveness. “ Daniel Goleman, Ph. D. , Primal Leadership. © 2006 Exceptional Horizons Inc. All rights reserved

Why now - con’t. Leadership Findings - con’t. 4 ways a a leader uses or abuses emotional power. . . Daniel Goleman, Ph. D. , Primal Leadership. • Leaders give praise or withhold it, • Criticize well or destructively, • Offer support or turn a blind eye to people's needs. • Guide in ways that give people a sense of clarity and direction in their work, or not. a story. . © 2006 Exceptional Horizons Inc. All rights reserved

“The Ape Story” © 2006 Exceptional Horizons Inc. All rights reserved

Determining the need to enhance EQ: Ask the question. Answer with brutal honesty. © 2006 Exceptional Horizons Inc. All rights reserved

Self Awareness Snapshot: What is the current quality of your “emotional wake”? What does it need to be tomorrow? ? ? ? Low EQ. . . High EQ “The truth may set you free but first it will thoroughly irritate you. ” From Fierce Conversations, Susan Scott . © 2006 Exceptional Horizons Inc. All rights reserved

4 Observations on EQ/IQ/Personality/Change: 211/212 “You don’t drown by falling in the water; you drown by staying there. ” Edwin Louis-Cole The ampersand . . . © 2006 Exceptional Horizons Inc. All rights reserved

& Knowledge does not equal skill. Action plan //inventory . © 2006 Exceptional Horizons Inc. All rights reserved

5 min. Last Exercise! EQ Mini Checklist & Action Planner: (2) Minutes - individually: 1. Scan the form; mark areas of particular interest. 2. Complete question #1. (3) minutes total with NEW partner: 3. Discuss the challenges of achieving #1 4. Discuss/complete question #2 5. Group review of #2 © 2006 Exceptional Horizons Inc. All rights reserved

Summary 1. “White Water” - Constant Change – “Not your daddy’s Chevrolet”: New times, new speed, new demands. IQ no longer enough. Teamwork/collaboration/relationship/innovation requirement vastly greater. 2. Fusion of IQ and EQ: “Logic makes people think; Emotion makes them act. ” Intentionally tap into & harvest both hemispheres: Norman/eye chart. Attention to interrelatedness of all 3 organizational levels – macro-scan. . 3. Conscious EQ Leadership - addressing both the tangible and emotional needs to secure relationships, performance, partnerships. Requires: “Character, Competency and Caring”. Create a great wake. 4. EQ/ ROI success correlation: 67 -90% influence for Star performance. 4 -6 x IQ; Emotional Intelligence: Human Dynamics Competency - the new skill needed. 5. Neuro science Influence: physical contagion, the non-verbals, emotional hijacking, fun & enhanced neural activity, etc. 6. EQ skill enables “connecting”: which enables inspiration and excellence. Therefore, growing EQ skill has a huge payback indeed. “Trust” is the new power, social capital the new currency. ” © 2006 Exceptional Horizons Inc. All rights reserved

© 2006 Exceptional Horizons Inc. All rights reserved

A closing statistic. . . Appendix. . . • Description of an emotionally intelligent leader • Spotting high/low EQ - some tip offs • EQ & Leader competency definitions/descriptions • Getting Started EQ references • Article on “Walk a Mile. . . ” • Evaluation!! The home reality. . . 50%/15 of all arguments . . . Dr. Robert Cooper, Ph. D. , Executive EQ; pg. 129 © 2006 Exceptional Horizons Inc. All rights reserved

Emotional Intelligence: Personal and Social competence. “They may forget what you said, but they will never forget how you made them feel. ” Carl W. Buechner Connect effectively. © 2006 Exceptional Horizons Inc. All rights reserved

Thank you all. Questions? © 2006 Exceptional Horizons Inc. All rights reserved

. Exceptional Horizons, Inc. - Services Creating Better Tomorrows • EQ Assessments (Individual and/or Team) • Executive and/or employee one-on-one Coaching (overlaying Interpersonal skill development/enhancement onto current business practices/projects underway) • Personality Style Assessments (Individuals and/or Teams) • EQ workshops and/or presentations for leadership teams and/or staff • EQ Leadership/Team Development series (approx. 5 half-days and includes topics such as handling conflict, team dynamics, leaders’ values and attitudes, communication, cultures, styles, etc. ) MJ (Mary) Harwood, President - Exceptional Horizons, Inc. Accelerating performance for leaders, teams and individuals. Coach - Consultant - Speaker - EQ Specialist P. O. Box 1707 - Snohomish, WA 98291 206 -459 -2483 - mjharwood 1@msn. com © 2006 Exceptional Horizons Inc. All rights reserved