Why do we need emotional intelligence as business leaders?

This informal CPD article, ‘Why do we need emotional intelligence as business leaders?’ was provided by Claris Coaching, who work with businesses from the ground up, applying the key principles of leadership growth while learning how to listen with empathy and lead with compassion.

Whether you are a founder, second-generation leader, entrepreneur, or CEO, you are responsible for driving the vision, culture, and performance of your company.  

• Do you find that your mind gets clouded with too much going on?
• Do you find it challenging to find a work/life balance?
• Do you have numerous priorities that make it difficult to work with your team?
• Do you struggle to make decisions?
• Are you confused about the direction and in need of an outsider to bounce ideas off of?
• Are you noticing that your team is not performing at their best?
• Are you frustrated because you feel that you are not getting your message across? 
• Do you find yourself with less and less time to communicate with your team and keep everything in your head? 

All of these experiences are typical for anyone going through change within an organization, whether you are a founder, an entrepreneur, or the CEO driving the company's direction every day. You may wonder how to stay focused, passionate, and motivated to drive the company's vision and bring everyone along.

At every stage of growth, we experience pain. This can be due to taking on too much, feeling confused and not giving ourselves time to think. However, emotions play a crucial role as they drive our behaviour, which, in turn, impacts our performance. To address this, we can either try to navigate it on our own or work with a coach to develop our emotional intelligence.

Emotional intelligence is essential for business leaders

Emotional intelligence is essential for business leaders for several reasons:

• Self-awareness: Emotional intelligence helps leaders understand their own emotions, strengths, weaknesses, and triggers. By being aware of their emotional state, leaders can manage their thoughts and behaviours better, make more informed decisions, and effectively regulate their emotions.
• Relationship management: Business leaders often interact with various stakeholders, including employees, clients, customers, and investors. Emotional intelligence enables leaders to empathize with others, understand their perspectives, and build strong relationships based on trust and respect. Effective relationship management enhances teamwork, collaboration, and overall performance.
• Communication: Emotional intelligence enhances communication skills. Leaders with emotional intelligence can express their thoughts and ideas clearly, actively listen to others, and adapt their communication style to different individuals and situations. This promotes effective communication, reduces conflicts, and improves understanding among team members.
• Decision-making: Emotions play a significant role in decision-making. Leaders with emotional intelligence can recognize and manage their emotions during the decision-making process. They can also consider the emotions and perspectives of others, leading to more thoughtful and balanced decisions that consider both rational and emotional factors.
• Conflict resolution: Conflicts are bound to arise in any business setting. Emotional intelligence enables leaders to handle conflicts constructively. They can remain calm, understand the underlying emotions, and facilitate open dialogue to find resolutions that satisfy all parties involved.
• Employee engagement and motivation: Emotional intelligence allows leaders to connect with their employees on an emotional level. They can understand their needs, provide support, and effectively motivate them. This fosters a positive work environment, boosts employee morale, and increases engagement and productivity.
• Stress management: The role of a business leader can be demanding and stressful. Emotional intelligence helps leaders recognize their own stress levels and implement effective strategies to manage stress. By managing their own stress, leaders can prevent burnout and set a positive example for their teams. 

Overall, emotional intelligence helps business leaders navigate the complexities of human dynamics, build strong relationships, inspire and motivate their teams, and make well-informed decisions that benefit the organization as a whole. It is important to note that you are not alone. In a rapidly changing world, leaders can benefit from the guidance of an organizational consultant and coach outside of their organization.

We hope this article was helpful. For more information from Claris Coaching, please visit their CPD Member Directory page. Alternatively, you can go to the CPD Industry Hubs for more articles, courses and events relevant to your Continuing Professional Development requirements.