What’s Your EQ? How Emotional Intelligence Can Help Your Business
When you think about the skills and qualities a person needs to run a business successfully, what comes to mind? Many people might say that person’s intelligence, ability to make quick decisions, and financial and economic know-how play important roles in determining how successful that person and that person’s company are.
While intelligence and knowledge do matter in the business world, something else plays an even bigger role in determining a company’s success. That something is emotional intelligence, sometimes called EI or EQ (emotional intelligence quotient). Not everyone naturally possesses a high EQ. The good news is that you work on improving your EQ, for the sake of yourself and your business.
What is Emotional Intelligence?
In the simplest terms, emotional intelligence is your ability to detect and recognize emotions, including your own and others’, and your ability to understand how emotions affect decision making and actions. Often, EQ is divided into four parts: self awareness, self management, social awareness, and relationship management. Self awareness means that you are able to detect your own emotions while self management refers to being able to control your emotions, so that you don’t explode in anger when something goes wrong or become overly stressed out when there’s an issue with your company. Social awareness means you’re able to detect what other people are feeling, so that you can connect with them or have empathy with them. Relationship management refers to being able to connect with another person based on his or her emotions.
How it Affects Your Business
EQ affects your business on many levels. Being able to recognize, relate to, and connect with the emotions of other people is essential for keeping customers happy and maintaining a team of happy employees. For example, few people are going to want to work at a company that is completely inflexible about time off for family leave, or a company that has Draconian rules that few actual people can live up to. A company that doesn’t respond to the concerns or needs of customers is going to struggle to retain customers and will always be fighting to bring in new clients, as there are few repeat customers.
The first half of EQ, self awareness and self management, also have an effect on the success of a business. At some point, you might have let your emotions guide your decision making, and ended up regretting the outcome of the decisions. Perhaps you fired an employee over a single small mistake or were overly critical to a team member, causing him or her to leave the company. Being able to see that you are worked up about an issue and being able to take a step back in the moment and wait until your emotions have calmed down will help you avoid making rash or snap decisions about concerns that can ultimately affect your company’s overall health.
Ways to Develop EQ
Although not everyone is born with a high EQ, the good news is that there are ways to develop yours. To develop self awareness, take some time to think about your typical emotions in challenging situations. For example, how do you react or feel when someone says you messed up a situation or when a customer complains about an issue? You can also ask people you work with how they think you typically react in certain situations. Once you under your emotions and reactions, learn to pause when in the moment. Instead of doing what you would usually do, think about how to react in a way that won’t burn bridges.
You can use a similar technique when interacting with others, whether employees or customers. If a customer is dissatisfied with your service or with another area of your company, pause for a moment and reflect on how you can improve the situation. Think about what you would want in a similar circumstance, and use that information to guide your reaction.
EQ also plays a big role when it comes to establishing relationships with service providers and virtual CFOs. At New Direction Capital, we value relationship building and management. To learn more about how we can help you company grow, contact us today.
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