Larry O’Toole CEO Sanders Industries Holdings, Inc .
Create sustainable competitive advantages that drive enterprise value Trailing Twelve Months (TTM) EBITDA X Multiple - Debt
“No matter what leaders set out to do – whether it’s creating strategy or mobilizing teams to action – their success depends on HOW they do it. Even if they get everything else just right, if leaders fail in the primal task of driving emotions in the right direction, nothing they do will work as well as it could or should.” Daniel Goleman
“Too much college…. too little kindergarten” Daniel Goleman
What is EQ? Emotional Quotient Emotional Intelligence Intelligent about Emotions
Awareness of Relationship your management surroundings -- Caring -- Self Awareness management of & self control yourself
Said another way….. EQ is a person’s ability to read a situation, read the emotions of those around them, understand their own emotions AND to act appropriately using these emotions.
People don’t leave companies, they most often leave bosses
Deloitte Global Human Capital Trends, 2014 5 Elements of a Highly Engaged Workforce The work itself The flexibility and inclusion of the workplace People’s ability to learn and grow The management environment Trust and meaning from leadership
Meetings Productive discourse or create water cooler fodder? Leadership What’s he/she doing here? Live Visibility behind closed doors? Employee Productive or require clean up? feedback Planning Left brain focus on Strategy and analysis…attention to the right? Cul·ture – (kəlCHər) – noun “what your employees do when no one is watching”
They are still talking long after folks have nodded off…or left the room Their mouth has 200,000 miles on the odometer, yet their ears are still under warranty Their definition of “employee recognition” is not bumping into you when passing in the hallway Forget knowing your name….they don’t even know you work there
Brainstorming exercises are like skeet shooting contests…you toss up the ideas…they shoot them down They believe that using “Dear, Honey and Sweetheart” are endearing terms at work They are 100% committed…to themselves They thought Mike Tyson’s ear biting tactic was an innovative channeling of initiative
“What you learned in school just provides the threshold competence; you need it to get in the field, but it does not make you a star. It’s the emotional intelligence abilities that matter more for superior performance” Lyle Spencer, Jr. co-founder Hay/McBer Consulting Study of Harvard graduates • Medicine, Teaching, Business & Law • Correlated entrance exam scores & ultimate career progress
Aligned Companies Generate the Greatest Returns Evergreen Project Study results - 12 Leadership was key – “Winners” have alignment around: Shareholder return in dollars strategy 10 structure Winners culture 8 Tumblers execution Climbers 6 Losers ----- Factors of EI ----- 4 2 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 Source: HBR, What Really Works, July 2003
Six Styles of Leadership ( ( ) ) Visionary, Affiliative, Democratic, Coaching, Coercive, Pacesetter 30% – 40% of variability in performance is a result of leadership 58% of all initiatives do not succeed due to people issues---inability to lead Organizations with superior leadership capability outperform annual earnings goals by 20% to 30% Hay/McBer research 1999
Emotional Quotient Performance Differentiator EQ Management Management Principles Principles Technical Technical Skill Skill IQ IQ Hay/McBer research
More employees working virtually – email and phones as tools for interaction • Technology “impersonalizing” the workplace More project type employees – shorter time to engage them to full effectiveness Changing diversity in the workplace • Age, race, religion Greater globality requiring sensitivity to other cultures High job uncertainty & insecurity – workplace stress High degree of family & community stress
Would you want low or high EQ in a leader doing a turn around? It is not “soft” It is not “nice” ….it’s effective
Can an organization be successful if the leader doesn’t possess it? Can you have high EI and low ethics? Can you develop EI?
EQ & Interviewing Resume “walk” Team vs Solo work Bosses/Environments People issues Engaging people Ask two part questions Receptionist & waiter
Get a mentor and ask for direct feedback Have an outsider observe you in action Establish a confidant at the office to share observations Assess your style with your peers, superiors and subordinates Get help conducting an assessment Search the web…it’s content heavy • Youtube and search Daniel Goleman
• On line assessments: • Myskillsprofile.com • Arealme.com • Edu-nova.com • Formal assessments can be performed • Quality Reading: • “Primal Leadership” by Daniel Goleman • “Linking Emotional Intelligence and Performance at Work” by Vanessa Druskat • Harvard Business Review
• EQ is not a fad…proven EV enabler • Determine the EQ of your company • Reach out for external assessment help • Don’t underestimate it’s connection to culture!
Larry O’Toole Email: LTOTOOLE@cox.net
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