“Your first and foremost job as a leader is to take charge of your own energy and then to help orchestrate the energy of those around you.” Peter Drucker

Leaders influence others in 2 ways:
• Toward positive action for themselves and the organization's mission
• Away from positive action for themselves and the organization's mission

Research conducted at Harvard Business School (Heskett, J. et al) under the title “The service-profit chain” has demonstrated a sequence of effects that are associated with growth and profitability in the most successful companies. The service-profit chain, developed from analysis of successful service organizations, establishes relationships between profitability, customer loyalty and employee satisfaction, loyalty and productivity. This sequence is illustrated below.

When leadership attends to the internal quality of an organization, the response is increased staff satisfaction and organizational coherence. Staff satisfaction is the response to coherent leadership of the organization. Thus, coherent organizations are aligned around norms that bring out the best in people at work. Source: Putting the Service Profit Chain to Work, Harvard Business Review, Mar/Apr 1994. Heskett, J., Jones, T. Loveman, G., Sasser, W., Schlesinger, L.

The Service-Profit Chain
• Growth and Profitability
• Customer Loyalty
• Customer Satisfaction
• Value
• Productivity
• Staff loyalty
• Staff satisfaction
• Internal Quality
• Leadership

To what extent is the leadership:
• Energetic, Creative
• Participatory, Caring
• Listening, Coaching and Teaching
• Motivating by mission
• Leading by means of personally demonstrated values

Consider these reports from Primal Leadership: The Hidden Driver of Great Performance by Daniel Goleman, Richard Boyatzis and Annie McKee.

"There is no escaping the conclusion that a leader must first attend to the impact of his mood and behaviors before moving on to his wide panoply of other critical responsibilities." "We found that of all the elements affecting bottom-line performance, the importance of the leader's mood and its attendant behaviors are most surprising. That powerful pair set off a chain reaction: The leader's mood and behaviors drive the moods and behaviors of everyone else."

"Moods that start at the top tend to move the fastest because everyone watches the boss. They take their emotional cues from him or her. Even when the boss isn't highly visible - for example, the CEO who works behind closed doors on an upper floor - his attitude affects the moods of his direct reports, and a domino effect ripples throughout the company."

Research reveals that Emotional Intelligence is twice as important as any other factor in predicting outstanding employee performance, accounting for more than 85% of star performance in top leaders.

“When I compared star performers with average ones in senior leadership positions, nearly 90% of the difference in their profiles was attributable to emotional intelligence factors rather than cognitive abilities.”

“McClelland (David) found that when senior managers had a critical mass of emotional intelligence capabilities, their divisions outperformed yearly earnings goals by 20%. Division leaders without that critical mass underperformed by almost the same amount.”
Daniel Goleman, What Makes a Leader? Harvard Business Review, Nov-Dec 1998

Emotional Intelligence - the ability to manage ourselves and our relationships effectively - consists of four fundamental capabilities: self-awareness, self-management, social awareness and social skill. Each capability is comprised of specific sets of competencies. Below is a representation of these capabilities and competencies.

Self-Awareness • Emotional self-awareness • Accurate self-assessment • Self-confidence • Intuition	Social Awareness • Empathy; Understanding others • Service orientation • Organizational/political awareness
Self-Management • Emotional self-control • Adaptability & flexibility • Resilience • Effectiveness under pressure • Authenticity & intentionality • Trustworthiness & integrity • Conscientiousness & accountability • Innovation Self-Motivation • Achievement orientation; A drive for excellence • Initiative • Optimism • Commitment	Social Skills • Developing others • Leveraging diversity • Influence • Communication • Conflict management • Leadership - Visionary Leadership • Catalyzing change • Building bonds • Teamwork & collaboration

Adapted from The Emotional Competence Framework of Daniel Goleman, Ph.D., and the The ECI by Boyatzis, Goleman and HayGroup, Inc.

• Leaders want to hire and develop people with core competencies that underpin success.

• Being promoted to a position of Leadership does not make one a leader.

Click here for more information on assessment and feedback instruments used by leaders to raise their awareness and develop these competencies in themselves and their direct reports. View information on the ECI™ - Emotional Competence Inventory and the LCI - Leadership Competence Inventory