The Technology Executive Leadership Academy “TELA” Emotional Intelligence – “EQ”:

1. The Technology Executive Leadership Academy “TELA” Emotional Intelligence – “EQ”: The Critical Differentiator for Great Leadership. What it is & Why it matters. 6/10/09 – Bellevue, WA MJ Harwood, Exceptional Horizons

2. Criticality?___% Career Influence (to you and your direct reports . . .) 1994 Center for Creative Leadership Study

3. Today’s goal:Performance Insight Agenda I. EQ definition/success correlation statistics II. Brain anatomy/neuro-science III. Why now V. Leadership implications And misc. exercises along the way!

4. Business Outcomes: 3 Levels/3 Layers of InfluenceThe Offering - The Operation - The Human DynamicsHuman Dynamics = EQ Fully interrelated/causal: what happens at one level, affects the other two. • Individual Level • Talent • Attitude • Skill • Team Level • Synergy/Trust • Output • - Innovation • Organization Level • Alignment • Resiliency • Culture What’s key: Knowing what’s going on that’s affecting the ‘human dynamic thread’ & adjusting as needed:competency in human dynamics. Adapted from 6Seconds.org

5. Why it matters . . . Employee research statistics: ____% Respected and valued ____% Would leave current job ____% Ability to double productivity ____% Level of employee engagement

6. What it is . . . • EQ (human dynamics) - in its simplest form is: Personal & social competence.Shows up as interpersonal skill. “How leaders handle themselves and their relationships”.Daniel Goleman, Ph.D. • EQ Requires: Awareness and deliberate use ofBOTH emotional AND intellectual datato influence thoughts, feelings, actions. • Judged by: Ability to “connect”: to cause “resonance vs. dissonance”. (Not about: charisma – trying to make people happy – being “fun”) “Talk so people will listen, listen so people will talk.” Travis Bradberry, PH.D.Puppets/Water Cooler/Pay now-later further defined . . .

7. EQ (i.e. EI) Further Defined Personal Competence: Managing ourselves. INTRA-personal skills: 1. Self Aware 2. Self Managed “Catch & Control” Social Competence: Managing relationships. INTER-personal skills: 3. Understands Others 4. Social/Relationship Skills “Sense & Respond” • Breaks down into15-20“sub-competencies” • Appendix . .

8. Workplace Example . . . Understands Others/empathy:Customerempathy . . . Doc – vs. graphs/charts

9. Why it matters . . . EQ success correlation: ?? %of “star” performers withhigh EQ?? (In ALL roles)

10. The correlation between EQ and success:High Performers: 90% also have high EQ. The Business Case for Emotional Intelligence White Paper/TalentSmart 2005 Emotional Intelligence Quick Book, Travis Bradberry, Ph.D., 2005, 500k ind./multi year study.

11. The correlation between EQ and success - con’t. Compared to IQ?? Influence on “Life/Work” success vs. academic predictor: IQ: 0% - 20% (common workplace levels) EQ: 30% - 80% (2-6 x IQ) including scientists! (0% correlation between IQ and EQ)

12. The correlation between EQ and success - con’t. • EQ - IQ – Expertise: • All three essential for effective performance for hiring, • careers, and promotion decisions. To what degree? • For starperformers andsuperior leaders: • EQ Influence on performance: ___%? • IQ & Expertisecombined __ %?

13. EQ Skill The correlation between EQ and success - con’t. Essential Performance Abilities: Star Performers: 67% EQ,33% IQ/Expertise. (Team bldg., leveraging diversity, adaptability, change catalyst) For Superior Leaders: 80-90% EQ. 90% - Working With Emotional Intelligence, 1998, Daniel Goleman, Ph.D. 80% - The Business Case for Emotional Intelligence White Paper/TalentSmart 2005 1 hr. vs. 3-5 IQ not #1/3

14. Leadership Attitudes and Insights An Exercise! 2 Teams: Team #1: Team #2:

15. How was it?

16. Understanding others: • “Delegating – collaborating”: rewards beyond performance • perfection. • - From the musicians level of fulfillment • - From the listener’s level of fulfillment • - A single instrument can not attain the heights of a full orchestra. • “Joy shared is doubled. Misery shared is halved.”

17. The Science Behind it: So much for “soft” skills.

18. The Hemispheres . . . Left Hemisphere Rational Brain Neocortex “Thinking Center” IQ Right Hemisphere Emotional Brain Limbic system (amygdala) “Emotional/Intuition Center” EQ

19. Understand the hemispheres – con’t. Left Hemisphere Rational Brain Neocortex “Thinking Center” IQ Analysis Abstract reasoning Technical expertise Fact recall Calculations Spatial logic Language center Operates by logic

20. Understand the hemispheres – con’t. Right Hemisphere Emotional Brain Limbic system (amygdala) “Emotional/Intuition Center” EQ Impulse control/stress toler. Feelings/intuition Empathy and optimism Ability to influence//initiative Ability to work w/others/to lead Flexibility/adapt to change Creativity Operates automatically

21. Right/Left Brain Influence Rational Brain Emotional Brain Behavior Rational and Emotional Braininterconnected - constant feedback to one another on what to think, feel, do. Degree varies! We need both limbic and logic -balancedinput is the key. Note:6 seconddelay- E=80kfaster/jet-snail.

22. Emotions . . .Why “awareness” is so critical: In effect, emotion alerts the brain and influences: • Attention • Interpretation • Recall/memory • Prediction • Decision-making • Constructive or destructive thinking and actions • Behavior (e.g. hiring influence – Exec. hiring batting avg. . .) White noise or insight ? The rational mind justifies the emotional mind – not always accurately . Demand a balance of reason and emotion. Harvard Bus. Sch. E.g..

23. Words . . . an exercise! Setting the scene . . .

24. “Primed for Action” Scrambled sentence test. • him was worried she always • from are Florida oranges temperature • sunlight makes temperature wrinkle raisins. • shoes give replace old the • he observes occasionally people watches • be will sweat lonely they • sky the seamless gray is • us bingo sing play let

25. “Primed for Action” Scrambled sentence test. • him was worriedshe always • from are Floridaoranges temperature • sunlight makes temperature wrinkleraisins • shoes give replace old the • he observesoccasionally people watches • be will sweat lonelythey • sky the seamless grayis • us bingo sing play let Professor/Hooligan . . . Leaders shape

26. Workplace stories – visuals - code names – slogans . . . Entertainment? Marketing spin? No. They simply “Work”! They tap into both hemispheres . . .

27. EI is Tapping into both IQ & EQ for optimal results Left HemisphereAnalysis: Logic/Content/Sequential the 1000 words - seeing the eye chart Right Hemisphere Synthesis: Feeling/Context/Simultaneous the picture (80k faster): feeling N.R. (Innovation/engagement center!) Logic makes people think – emotion makes people act. The Ritz Carlton . . . Green/Red Buttons. . .

28. The value of tapping into the “whole” person . . . From Source: Bandura, A., and Cervone, D. “Self-Evaluation and Self-Efficacy Mechanisms Governing the Motivational Effects of Goal Systems.” Journal of Personality and Social Psychology, 1983, 45, pp. 1017-1028.

29. The neuro-science . . . 4 facts: how our `limbic’ influences our logic – why performance is effected . . . • 1. Hormones and “Flooding” –“emotional hijacking” – 6 sec. delay – work stress influence (#1/inept criticism) • 2. Open loopsystem physiology (leaders beware!)– 4-6’/15 min.(& 3 level potential effect) • 3.The “science” behindfun(hi EQ Teams +29%/laugh 3x) • The more positive the mood of a group leader, the more positive, • helpful, and cooperative are those in the group.WWEI/186 • Good moods enhance neural activity - accelerate connections.. • 4. Non-verbal power

30. The limbic and non-verbal power: Body language is ___% of the conversation? Neuro-science – con’t.

31. The 1,000 words . . .

32. A simple example . . . Commuting . . . Consider the experience . . . Calm tense angry And did you enter work feeling this way?!!

33. Neuro-science – con’t. • Non-verbal power: 50-80% of the conversation • Why . . . • Conscious MINDcan process126bits of info. per second and 40bits of speech. • Our SENSES can receive up to 10 MILLION bits of input per second. • Limbic - 80,000 x faster - Simultaneous processing. Consciously project & collect. Emotional radar knob – turn it up! Email? (more said – no facial ck./bal.) Executive EQ, Emotional Intelligence in Leadership and Organizations” (1997) by Robert Cooper, Ph.D. and Ayman Sawaf /88-89

34. The Limbic and the Knee . . . what they have in common.

35. Limbic Prep Exercise

36. Why now? (AMA, MBA Schools, etc. . . .) • The Times • The Business Outcomes Research • The Leadership Research By nature a social species: the human genome has evolved .02% in the past 40,000 years. Dr. Robert Cooper, Ph.D.

37. Why EQ now? IQ no longer enough.The Times: • “Permanent White Water Environment” Flexibility – innovation required to survive. (E.g. competition a moving target – on line legal tools, blog/viral marketing, etc.) 30% mkt. adoption: phone 38; PC-13; I-net 7; IPod __? • Teamwork requirement: +3x– Data overflow – data dynamic Collaboration critical. (Plus temp. employees; global reach, etc.- less direct control) • Multi-generational:Different values – different needs/demands • Currency of the past = “knowledge is power”. For the millennium “trust” is power – a.k.a. “emotional/social capital” the new currency. And trust requires “effectively connecting – EQ. The research . . .

38. Why now?The Business Outcomes ResearchROI $$$ • Top 10% programmers exceed average performers in producing effective programs by 320%(teamwork, etc.) • Amex. Financial Advisors – pilot test of EQ/optimism training helped produce a rise in sales in just 3 months; • 105 top sales people studied from 44 Fortune 500 companies. Avg. sales per year for them was TWICE “avg.”(relationship skills). • U.S.A.F. Recruiter retention rate was 50%. Used EQ-I tool to identify EQ profile, hired/trained to that, recruiter retention rate is now??%. 10k investment, 2.7 mil. savings in one yr. • and customers?? . . . (Per a Goleman study, 80% of F-500 Training EQ)

39. Issues Why now - con’t.The Customers:70% Customers lost traced to EQ (Forum Corp. 1989-1995) Relationship Issues Prod/etc.

40. Why now - con’t. The Leadership Research. But first . . ..

41. 6 min. (thenbreak!) Leadership Insight -An Exercise! Leader’s EQ Mini-assessment (Education and EQ Indicator) 1 – 5: Very Weak to Very Strong – a Snapshot TEAM’S perception of how well you . . . Value and invite feedback; Develop others; Surface conflict, etc.

42. Competence, Character, Caring.Leadership IQ/EQ FusionBefore being followed – others ask: 1. Do you know what you’re doing? (Competence)2. Can I trust you? (Character)3. Do you care about me? (Caring)D.A. Benton in Secrets of a CEO Coarch/1999. Italics, Exceptional Horizons, Inc.“People first follow the person, then the plan. “If you don’t believe in the messenger, you won’t believe the message. The Leadership Challenge/Kouzes & Posner.5 Findings . . . Why now - con’t. The Leadership Research:

43. 5 EQ Leadership Findings . . . the implications are profound. • “Leaders spend 25% of their careers on decision-making and • 75% on interpersonal work.” Interpersonal skill level strongly • influences results.Robert Cooper, Ph.D./Executive EQ – 37%/nonpmngr. Mtgs. • W/W study - 75% accuracy, climate alone enabled“sorting” companies with high vs. low profits/growth. 50-70% sourceofclimate traced to leader. (Financial results effected +/- 20-30% with hi/low EQ) • The EIQB. • People pay more attention to the leaders - tend to mimic. A crucial • dimension of leadership:emotional wake - positive or toxic (“open loop” limbic). A leader’s self/mood management effects others, effects business.

44. Leadership Findings - con’t. 4.Star Leaders/performers know their strengths /weaknesses- intentionally seek out feedback: EQ, Style, 360, others – they have to if they want it. Coopers & Lybrand study – Fortune 500 Companies: 11% CEOS believed the message of bad news took a real risk; 33% of middle- management; 50% of employees! ??? Disease. • Impact of leaders: critical to stay/go employee (i.e. TALENT) decisions (3 studies/3years): #1 reason high-tech workers listed: good/poor manager & respect. CCL &- Corporate Leadership Council Report/1998/Survey with High Value EEs – same results.

45. Why now - con’t.Leadership Findings - con’t. “By 2010 there will be a10 Million employee shortage . . . Employers in the technology industries will be the first to suffer from unfilled positions.”From “Crucial Trends and How They’ll Impact Your Business” 8/04: 75 m. BB Exit/45m. X. Simply put, competition for top performers will be intense. Per TRENDS, 50% of F-500 have business coaches – multi-levels “Subordinates and peers (vs. bosses) appear to have the most predictive validity of a leader’s actual effectiveness.“ Daniel Goleman, Ph.D., Primal Leadership.

46. Why now - con’t.Leadership Findings - con’t. 4 ways a a leader uses or abuses emotional power . . . Daniel Goleman, Ph.D., Primal Leadership. • Leaders give praise or withhold it, • Criticize well or destructively, • Offer support or turn a blind eye to people's needs. • Guide in ways that give people a sense of clarity and direction in their work, or not. a story . . . .

47. “The Ape Story”

48. Determining the need to enhance EQ: Ask the question. Answer with brutal honesty.

49. Self Awareness Snapshot: What is the current quality of your“emotional wake”? What does it need to be tomorrow? ??? Low EQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .High EQ “The truth may set you free but first it will thoroughly irritate you.” From Fierce Conversations, Susan Scott .

50. 4 Observations on EQ/IQ/Personality/Change: “You don’t drown by falling in the water; you drown by staying there.”Edwin Louis-Cole 211/212 The ampersand . . .