Emotional Capitalists — Why we need to invest much more into developing our leaders EQ
“A leaders intelligence has to have a very strong emotional component” — Jack Welch
Today I started a book on someone who’s work I am fascinated with. Dr Martyn Newman PhD, is a clinical psychologist and a world renowned expert on emotional intelligence and leadership development. In his book Emotional Capitalists, Martyn goes into detail on the importance of investing in the development of a leaders EQ and provides a practical framework on how to do so. He dissects emotional intelligence into what he believes to be the 5 main components and further expands on the 10 competencies that he believes to be the practical success factors in developing emotional intelligence in anyone.
Some of the highlights I have captured and that have really resinated with me from Martyn’s writings so far are as follows.
Emotions shape our behaviour, our relationships, our most important decisions and even our economy. That’s right, Martyn believes there is money in emotion!
“In an economy increasingly shaped by emotion, success comes from attracting the emotional consumer or colleague — not the rational one.”
Emotions determine whether or not people will work well for you, buy from you, employ you and enter into business with you. Accordingly, the focus for leaders in business has shifted well beyond traditional financial and knowledge assets, and even beyond accounting for the value of human capital. A new and more critical asset to bottom line performance has emerged — emotional capital.
Emotional Capital— is the value created by the positive morale, engagement and commitment to the brand demonstrated by employees and customers.
In the last 10 years the clearest framework for describing the practical competencies leaders need to build emotional capital has been associated with emotional intelligence (EQ).
“Research shows convincingly that EQ is more important than IQ in almost every role and many times more important in leadership roles. This finding is accentuated as we move from the control philosophy of the industrial age to an empowering release philosophy of knowledge worker age.” — Stephen Covey
Emotional intelligence can be summed up in the following 5 components:
- SELF-AWARENESS: Your capacity to understand your own emotions and stay in touch with your feelings.
- SELF-MANAGEMENT: your ability to manage your own emotions and have confidence in your ability to manage your personal performance.
- SOCIAL AWARENESS: your talent for tuning into the experience of others.
- SOCIAL SKILLS: your people skills defining your talent for interacting and getting along with others.
- ADAPTABILITY: your ability to respond to challenges and adapt to new and difficult situations.
Emotional capitalists are those extraordinary leaders who recognise that to build a successful business today they must go beyond a focus on traditional financial assets such as physical capital (the bricks and mortar) and beyond intellectual capital (IP, databases, formulas and business process) and even beyond human capital to a new focus on emotional capital — the energy, enthusiasm and commitment in the hears of everyone connect with the business.
About Brenton Ward:
Brenton Ward is the founder of Lighthouse Leaders, a consulting business dedicated to helping companies develop extraordinary leaders. He is also co-owner of Hindsight Wealth, a wealth advice business based in Brisbane, Australia. Having worked in financial and professionals services for the past decade, I’ve had the unique opportunity to work hands-on with hundreds of companies and their leadership teams throughout Australia, New Zealand, America and Europe.
Lighthouse Leaders will soon be the go-to online marketplace for world class leadership development experiences. Lighthouse Leaders has the support of a well-respected, highly educated and experienced panel of leading experts from around the world.
Brenton is very passionate about helping people lead fulfilled careers and exploring technology that enables this in different ways.
Brenton lives between Dublin, Ireland and Brisbane, Australia which gives him a unique vantage point to see what companies are doing to grow and develop across Australia and Europe.
About Dr. Martyn Newman:
Martyn Newman, PhD is a clinical psychologist specialising in Emotional Intelligence (EQ) and Mindfulness. He is author of the best selling book Emotional Capitalists and newly released The Mindfulness Book. And coauthor of the Emotional Capital Report™ — the global benchmark for measuring EQ and leadership performance — and the Emotional Intelligence Sports Inventory — the world’s first psychological inventory to measure how EQ supports elite sports performance.
Martyn received his PhD from the University of Sydney and holds an MA from GTU at the University of California, Berkeley, a Masters of Psychology from Monash University, Melbourne, and a Doctor of Psychology from La Trobe University, Melbourne. He has held academic posts as Senior Lecturer at the University of East London, the School of Psychology at ACU National and is currently Visiting Fellow for Leadership at Sheffield Business School, Sheffield Hallam University and an Instructor in Mindfulness on the MBA program, Sydney University.
Martyn’s advice has been sought at the highest levels of leadership worldwide, including the likes of Sky, Deloitte, ExxonMobil, Mars, Network Rail and Quiksilver, Royal Bank of Scotland and British Airways among many others.