Emotional Intelligence and how it affects your business.
The following is a quote from a research paper by two researchers:
Lăcramioara Mocanu and Crina Elena Clima
“The term “intelligence” comes from the Latin “intelligence”, which means to connect, organize or from “understanding”, and which involves establishing relationships between people. Intelligence goes beyond thinking that is limited to establishing relationships between the essential characteristics of objectives and phenomena and not relationships between people. How complex this side of personality is apparent from the module of approach in the history of philosophy and psychology.”
No I can’t pronounce their names either, but their research on
emotion is interesting.
What we normally consider as intelligence is the measurable “Intelligence Quotient”, or I.Q. that can be statisically tested. We all know people who we consider to be smart.
We also know those who we imagine will score low on an IQ test.
This research paper essentially separates the two types of intelligence, “Intelligence that scores on “IQ” tests, and the intelligence of emotion.
The standard IQ is the part of intellect that most people associate with being “Smart”, or the ability to assimilate information quickly, and to be able to use it.
The emotional intelligence is the ability to intellectually internalize the things that we think, feel, see, hear, etc., and to be able to effectively use this new knowledge.
This research makes a distinction between emotional and the mechanical act of mentally tabulating information placed in front of you in such a way that you understand, and are able to effectively comprehend and use that information.
So, how does emotional intelligence affect your business?
I believe that most researchers (from what I have read) understand that there actually is a distinction between intellect and emotion.
In my opinion, these two mental facilities cannot be separated, and ultimately join together when there is a decision to be made.
Each one affects the other. Morality, or the emotional side of right v.s. wrong, comes into play when a business person sets an arbitrary price.
I live in a rural area with a lot of trees. Everyone around here with a chainsaw seems to think that they should be able to make a living cutting down trees.
We have had estimates for the same tree that range from $300 to $3,000. The more reputable companies check in at $800 to $1,000, and are fairly consistent in their pricing.
Cutting down a tree does sometimes offer challenges, but when it is in the woods with no homes, utility lines, and nothing to get in the way, and the price is $3,000, it seems to boil down to “Hmmm, nice place. I’ll be I can get $X000.00 dollars out of him.
Oh, and get this…
We live on a hill and the tree was going to be dropped into the forest area – lots of trees. The 3K estimate guy did not want to bother getting the tree out of the woods. He told us he would cut it up and we could have a fire (in the middle of the woods).
To me it brings to mind (as I mentioned above) that guy that would likely score pretty low on an IQ test. So much for chain saws.
The point is if you are not aware of how your emotions are directed, then your business decisions, and therefore your business itself will be affected by your emotions.
The various ways that emotional intelligence affects your business are many. Everyone who begins and runs a business is affected by emotional subjectivity when making difficult decisions. Objectivity often takes a “Back Seat” to emotion.
Another study showed that as a more experienced and knowledgeable business person, your decision process will be different than the novice just starting out.
The more knowledgeable a business person is, the more likely he/she is to rely on existing information directly related to what is going on within the business parameters at the time an important decision arises.
The more more in experienced a manager/owner is, the more likely he/she will be inclined to get information from external sources, even from less informed persons from within the present business parameters.
“Ding,Ding,Ding!” It seems that knowledge wins out, and usually makes the better decisions. Not all that surprising.
The Take away
I was just speaking with someone from the SBA. Now before I go further, I want to make it clear that this is a very good and helpful organization.
If you need advice, then this is a good starting point for many businesses.
I was interested in doing a workshop for new business start ups, so I got in touch with the head of the training at a local SBA center.
Unfortunately, I was unable to say the right things. Supposedly, all of his business tutors were able to do everything that I told him I could do.
NO – They don’t and they can’t!
Why? Because I have extensive training in the world of performance, and how the mind and emotions work together to create a better performance.
As good as his people might be, and they probably can build some self-confidence in some individuals (only one small part of performance success), they still don’t have the knowledge and skill of someone who has been doing this for over 20 years.
Make sure that when your problem comes up, that you find the right people to help you.