Is your EQ up to your IQ?
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 and scored.
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 paper essentially separates the two types of intelligence.
The standard IQ is the part of intellect that most people associate with being “Smart”, or the ability to assimilate information quickly, and use it correctly.
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 use that information.
So, how does emotional intelligence affect your business?
I believe that most researchers (from what I have read) understand that there 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. Ethics and morality, or the emotional side of right v.s. wrong, comes into play when a business person sets an arbitrary price when selling a product, or especially a service.
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.
I 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, he has a nice house. I’ll bet I can get $X000.00 dollars out of him.
Oh, and get this…
I 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) and roast hot dogs and marshmallows.
To me it brings to mind (as I mentioned above) that guy who would undoubtedly score pretty low on an IQ test. So much for chain saws.
The point is, if your emotions are not directed and controlled, 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 business and/or personal decisions.
Your emotions can cause you to:
=> Lose self-confidence
=> Harbor unrealistic fears
=> Experience self-doubt
=> Lower your expectations
Another study showed that the more experience and knowledge you have in
a business, that there is a considerable difference in how you make your decisions.
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 the decision arises.
The more novice the manager (for example) is, the more likely he/she will be inclined to ask others, and get information from more external sources.
Your Emotional Intellect can have you running your business effectively, or it can have you run it into the ground.
To stay on top of your emotions, you have to be aware of what they are doing to you, and understand how they are affecting you.
Business is full of stressors. Correct handling of your stressors can help you
stay in business, or create further stress within your business.