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Spencer Green
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Sales and the 'Talent Magnet'

A lot is written about being a ‘Talent Magnet’, either as a company, or as President. It’s all good practice – listen, mentor, reward, provide clear goals and career maps. Good practice for the employer, but what about the employee?
25 May 2011

Emotional Intelligence

MHS Inc. | www.mhs.com/ei


What is Emotional Intelligence?
For most of the past century, psychologists working to define human intelligence were focused on cognitive intelligence. Traditionally measured by IQ, cognitive intelligence is representative of an individual’s capacity to learn, understand, recall, and solve logical problems. During the latter part of the 20th century, our concept of human intelligence grew to include non-cognitive faculties and capabilities, such as emotional intelligence.
 
Emotional intelligence (EI) is best defined as the ability to identify and manage emotional information in oneself and others, and to focus energy on required behaviors. Also known as “social intelligence”, EI comprises a set of skills and competencies that are directly related to an individual’s ability to tolerate stress, respond to environmental change, empathize with the needs of others, and manage their own emotional state.

While entry into many professions requires a certain degree of cognitive ability, IQ is not a strong predictor of subsequent performance. Measurements of IQ by themselves do not differentiate between those who will and those who will not succeed in an already-assumed professional position (Cherniss, 2000).
 
Emotional Intelligence Assessment Tools
More than any other indices designed to predict performance, measures of emotional intelligence are showing real payoff-power when it comes to workplace success. Top organizations are improving their bottom-line by using tools that help assess employees’ emotional intelligence.

The U.S. Air Force found that by using the EQ-i (see below) to assess and select recruiters, they increased their ability to predict successful recruiters nearly three-fold. The first year after reorganizing its selection and training program to address the EI determinants of success, the Air Force increased retention worldwide by 92%.The immediate gain was a savings of $3 million annually (Handley & Bar-On, 1998). A report to a congressional sub-committee stated that Air Force recruiters are twice as productive as recruiters in other branches of the armed forces. Since then, the Army and Navy have launched similar systems tailored to their specific recruitment needs.

Several emotional intelligence assessment tools have been used successfully in organizational selection and development initiatives worldwide. Dr. Larry Richard, VP at Hildebrandt International, recommends using only a test “that has been constructed through a scientific methodology, on which the publisher has validity and reliability statistics, and that has been tested and developed on a representative cross-section of the population.” Development of these instruments, following scientific methodology, ensures that they assess emotional intelligence in a dependable and consistent manner. Without this careful attention to development, obtained scores could not be compared to a yardstick and would merely be numbers, providing no useful information.

Differing in the way they were constructed, two main models have emerged, each with its own particular emphasis and applications. The two main models outlined next are the archetypes of effective EI testing.

EQ-i: An Emotional & Social Functioning Model
The Emotional Quotient Inventory (EQ-i®) was the first scientifically validated instrument created to assess emotionally intelligent behavior. Defined as a model of emotional-social intelligence, the question driving the development of the EQ-i was: “Why do some people in life with high IQ fail, while others with moderate IQ succeed?” Comprised of 15 skills and processes that contribute to success, the instrument consists of 125 first-person statements that probe one’s use of these emotional and social skills in terms of their frequency and intensity. For example, results might indicate that compared to others, the respondent rates herself a frequently empathic person.

The EQ-i has been shown to be a strong predictor of success and is frequently used in employee selection and development. The 15 factors it measures are often regarded as the building blocks of complex business skills such as conflict resolution and planning. “The EQ-i is used more than any other [EI] tool because it has more predictive validity,” says Dr. Richard.

The EQ-i model offers a multi-rater assessment, the EQ-360™, as well as a powerful framework through which to examine leadership potential (Leadership Report). In a multi-rater or “360º” assessment, an individual’s managers, peers, and direct reports are invited to anonymously rate the emotional and social skills of the person being assessed. Dr. Dick Thompson, President and CEO of High Performing Systems, recommends using 360° tools for coaching. “I start with a thorough assessment of the individual using the EQ-360. It gives me feedback from peers and direct reports for a more rounded picture of the areas the person should improve upon.”

MSCEIT: An Ability-Based Model
While the functioning model targets one’s potential for success, the ability-based model measures a person’s actual EI performance. The only ability-based EI tool is the widely-used Mayer-Salovey-Caruso Emotional Intelligence Test (MSCEIT™), pronounced “muh-skeet.” John Mayer of the University of New Hampshire and Peter Salovey, Dean at Yale University, coined the term Emotional Intelligence in 1990. They, along with co-author David Caruso, designed the MSCEIT to measure emotional abilities consistent with the intelligence-testing tradition. The MSCEIT is one of the more recent exciting developments in the field of emotional intelligence, creating a unique focus on measuring EI through actual mental performance. For example, one may be given a picture and asked to identify how much of a given emotion is in it or given a scenario and asked how various individuals in the scenario may best respond under the circumstances described.

Of the four MSCEIT abilities, Dr. Thompson says each “gives you a guideline about something that you can do to prepare for stressful work situations.” For example, whether you have a difficult meeting or an important sales call, you can ask yourself the following:

1. Are you aware of your own emotional state?
2. What emotional state do you want to be in? What emotional state do you want the other person to be in?
3. What outcomes do you want? What emotional state would you like this to lead to?
4. How do you prepare yourself to take the right emotional steps to reach your desired outcome?

The MSCEIT helps to pinpoint a person’s ability to apply these questions to everyday life. For example, results might indicate that compared to others, the respondent is less able to perceive the emotions of others. As in classic IQ testing, each of the 141 questions portrays a scenario, thus regarded as a “pure test of emotional intelligence” according to Dr. Richard. “You can’t fake on this test—you need to demonstrate these abilities.” Richard, who uses the MSCEIT primarily in his work with lawyers, finds it to be ideal in situations where test-takers are skeptical of self-report assessments.

Choosing the Right Model for Your Initiative
“One of the things that is central to both models of EI is the ability to understand yourself and accurately read your emotional state and the emotional states of others,” states Dr. Richard. Which EI determinants are most important varies by industry, organizational culture, and which stage of the business life cycle an organization is at. When it comes to selecting the right assessment tool, Dr. Richard emphasizes that the desired business outcomes should guide your choice. Each model “has advantages; it depends on what you are trying to accomplish,” Richard states.

Higher EI = Better Leadership
Researchers at the Center for Creative Leadership (CCL) had long believed that aspects of emotional intelligence were related to leadership effectiveness, but Center researchers had not explored this relationship in depth. In 2001, they conducted a study to examine the relationship between EQ-i scores and Benchmarks®, their 360-degree leadership development tool. Benchmarks is an instrument based on 24 years’ study of the skills and perspectives of leadership success.

CCL evaluated 236 leaders and found that ten of the sixteen Benchmarks factors were significantly related to EQ-i subscales. In linking the Benchmarks factors with EQ-i subscales, researchers identified those qualities that make the biggest difference in leadership performance. In addition to the correlational studies, researchers divided leaders into high and low performing groups based on their Benchmarks scores and then compared the EQ-i scores of high and low performers:

Figure 1: Top Performing Leaders Score Higher on EQ-i
Source: MHS

This graph illustrates that the more successful leaders had higher EQ-i scores across all subscales. Four areas (Interpersonal Relationships, Stress Tolerance, Impulse Control, and Happiness) accounted for 25% of the variance in performance between stars and non-stars.

Roger Pearman, President of Qualifying.org, Inc. and Senior Adjunct Staff for CCL, points out that coaching and training leader competencies may be enhanced by zeroing in on their supporting elements. For example, conflict management may be improved with a focus on the underlying skill set, including impulse control, assertiveness, and self-regard.

The American Express Challenge

MHS conducted a study for American Express in Fort Lauderdale to determine the EI skill set that best predicted success for Customer-Focused Sales Associates. American Express offered open positions in this department to top telephone service center representatives. Two metrics were used: customer satisfaction (feedback regarding customer service based on 13 behaviors) and sales goal attainment (profitability of associates’ work). MHS quickly realized that while some CFSAs had high customer service skills and some had high sales group skills, few were strong in both performance criteria.

Figure 2: Top Performers Score Highest on EQ-i
Source: MHS

CFSAs who scored high in both performance categories scored significantly higher on the EQ-i as compared to those who only scored well in one performance area, or were low in both. In other words, high emotional intelligence was a strong predictor of associates with both required skill sets. Those who excelled in sales as well as meeting customers’ needs clearly outperformed those who did not. In fact, one-half of the skill set that existing successful telephone service centre reps need to be successful in their new role is comprised of emotional and social skills.

The Business Case for Emotional Intelligence
The prospect of introducing EI tools into an organization may generate some questions about the impact of EI in the workplace. “You’re going to be asked, ‘How is this going to make the organization better and how is this going to make us money?’” says Kelley Marko, President of Marko Consulting Services. He argues that companies often need proof that more effective leaders, teamwork, and communication contribute to the bottom line. Marko suggests you always start by “looking at the outcome that you want to achieve by engaging EI assessment and development in your organization. For example, having more effective leadership is often an outcome that organizations are looking for. Defining this objective—the ‘what’—gives a solid anchor point for participants. Emotional intelligence training then provides the ‘how’ to achieve this outcome in a strategic and informed way.”