What Makes a Leader? PDF - HBR 1998

www.hbr.org B E S T O F H BR 1 9 9 8 IQ and technical skills are important, but emotional intelligence is the sine qua non What Makes a Leader? of leadership....

www.hbr.org B E S T O F H BR 1 9 9 8 IQ and technical skills are important, but emotional intelligence is the sine qua non What Makes a Leader? of leadership. by Daniel Goleman Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 What Makes a Leader? 11 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications Reprint R0401H This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  BEST OF HBR 1998 What Makes a Leader? The Idea in Brief The Idea in Practice What distinguishes great leaders from UNDERSTANDING EI'S COMPONENTS merely good ones? It isn't IQ or technical skills, says Daniel Goleman. It's emotional EI Component Definition Hallmarks Example intelligence: a group of five skills that en- able the best leaders to maximize their own Self- Knowing one’s Self-confidence A manager knows tight deadlines awareness emotions, Realistic self- bring out the worst in him. So he and their followers' performance. When se- strengths, assessment plans his time to get work done well in nior managers at one company had a criti- weaknesses, Self-deprecating sense advance. cal mass of EI capabilities, their divisions drives, values, and of humor outperformed yearly earnings goals by goals—and their Thirst for constructive 20%. impact on others criticism Self- Controlling Trustworthiness When a team botches a presentation, The EI skills are: regulation or redirecting Integrity its leader resists the urge to scream. disruptive Comfort with Instead, she considers possible Self-awareness—knowing one's emotions and ambiguity and change reasons for the failure, explains the strengths, weaknesses, drives, values, and impulses consequences to her team, and impact on others explores solutions with them. Motivation Being driven A passion for the work A portfolio manager at an investment Self-regulation—controlling or redirect- to achieve for itself and for new company sees his fund tumble for ing disruptive impulses and moods the sake of challenges three consecutive quarters. Major achievement Unflagging energy to clients defect. Instead of blaming Motivation—relishing achievement for its improve external circumstances, she decides own sake Optimism in the face to learn from the experience—and of failure engineers a turnaround. Empathy—understanding other people's emotional makeup Empathy Considering Expertise in attracting An American consultant and her team Social skill—building rapport with others others’ feelings, and retaining talent pitch a project to a potential client in especially when Ability to develop Japan. Her team interprets the client’s to move them in desired directions making decisions others silence as disapproval, and prepares to COPYRIGHT © 2000 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. We're each born with certain levels of EI Sensitivity to cross- leave. The consultant reads the client’s cultural differences body language and senses interest. She skills. But we can strengthen these abilities continues the meeting, and her team through persistence, practice, and feed- gets the job. back from colleagues or coaches. Social Skill Managing Effectiveness in leading A manager wants his company to relationships to change adopt a better Internet strategy. He move people in Persuasiveness finds kindred spirits and assembles a desired directions Extensive networking de facto team to create a prototype Expertise in building Web site. He persuades allies in other and leading teams divisions to fund the company’s participation in a relevant convention. His company forms an Internet division—and puts him in charge of it. STRENGTHENING YOUR EI Use practice and feedback from others to strengthen specific EI skills. Example: An executive learned from others that she lacked empathy, especially the ability to listen. She wanted to fix the problem, so she asked a coach to tell her when she exhibited poor listening skills. She then role-played incidents to practice giving better responses; for example, not inter- rupting. She also began observing executives skilled at listening-and imitated their behavior. page 1 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  IQ and technical skills are important, but emotional intelligence is the sine qua non of leadership. B E S T O F HB R 1 9 9 8 What Makes a Leader? by Daniel Goleman It was Daniel Goleman who first brought the and why it connects to performance, and how it term “emotional intelligence” to a wide audience can be learned. with his 1995 book of that name, and it was Goleman COPYRIGHT © 2003 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. who first applied the concept to business with his Every businessperson knows a story about a 1998 HBR article, reprinted here. In his research highly intelligent, highly skilled executive at nearly 200 large, global companies, Goleman who was promoted into a leadership posi- found that while the qualities traditionally asso- tion only to fail at the job. And they also know ciated with leadership—such as intelligence, a story about someone with solid—but not toughness, determination, and vision—are re- extraordinary—intellectual abilities and tech- quired for success, they are insufficient. Truly ef- nical skills who was promoted into a similar fective leaders are also distinguished by a high position and then soared. degree of emotional intelligence, which includes Such anecdotes support the widespread be- self-awareness, self-regulation, motivation, em- lief that identifying individuals with the “right pathy, and social skill. stuff” to be leaders is more art than science. These qualities may sound “soft” and unbusi- After all, the personal styles of superb leaders nesslike, but Goleman found direct ties between vary: Some leaders are subdued and analyti- emotional intelligence and measurable busi- cal; others shout their manifestos from the ness results. While emotional intelligence’s rele- mountaintops. And just as important, different vance to business has continued to spark debate situations call for different types of leader- over the past six years, Goleman’s article re- ship. Most mergers need a sensitive negotiator mains the definitive reference on the subject, at the helm, whereas many turnarounds re- with a description of each component of emo- quire a more forceful authority. tional intelligence and a detailed discussion of I have found, however, that the most effec- how to recognize it in potential leaders, how tive leaders are alike in one crucial way: They harvard business review january 2004 page 2 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 all have a high degree of what has come to be objective criteria, such as a division’s profitabil- known as emotional intelligence. It’s not that IQ ity, to differentiate the star performers at se- and technical skills are irrelevant. They do mat- nior levels within their organizations from the ter, but mainly as “threshold capabilities”; that average ones. Those individuals were then ex- is, they are the entry-level requirements for ex- tensively interviewed and tested, and their ca- ecutive positions. But my research, along with pabilities were compared. This process resulted other recent studies, clearly shows that emo- in the creation of lists of ingredients for highly tional intelligence is the sine qua non of leader- effective leaders. The lists ranged in length ship. Without it, a person can have the best from seven to 15 items and included such ingre- training in the world, an incisive, analytical dients as initiative and strategic vision. mind, and an endless supply of smart ideas, When I analyzed all this data, I found dra- but he still won’t make a great leader. matic results. To be sure, intellect was a driver In the course of the past year, my col- of outstanding performance. Cognitive skills leagues and I have focused on how emotional such as big-picture thinking and long-term vi- intelligence operates at work. We have examined sion were particularly important. But when I the relationship between emotional intelligence calculated the ratio of technical skills, IQ, and and effective performance, especially in leaders. emotional intelligence as ingredients of excellent And we have observed how emotional intelli- performance, emotional intelligence proved gence shows itself on the job. How can you to be twice as important as the others for jobs tell if someone has high emotional intelli- at all levels. gence, for example, and how can you recog- Moreover, my analysis showed that emo- nize it in yourself? In the following pages, tional intelligence played an increasingly impor- we’ll explore these questions, taking each of tant role at the highest levels of the company, the components of emotional intelligence— where differences in technical skills are of neg- self-awareness, self-regulation, motivation, em- ligible importance. In other words, the higher pathy, and social skill—in turn. the rank of a person considered to be a star per- former, the more emotional intelligence capa- Evaluating Emotional Intelligence bilities showed up as the reason for his or her Most large companies today have employed effectiveness. When I compared star perform- trained psychologists to develop what are ers with average ones in senior leadership posi- known as “competency models” to aid them in tions, nearly 90% of the difference in their pro- identifying, training, and promoting likely files was attributable to emotional intelligence stars in the leadership firmament. The psy- factors rather than cognitive abilities. chologists have also developed such models Other researchers have confirmed that emo- for lower-level positions. And in recent years, I tional intelligence not only distinguishes out- have analyzed competency models from 188 standing leaders but can also be linked to strong companies, most of which were large and glo- performance. The findings of the late David bal and included the likes of Lucent Technolo- McClelland, the renowned researcher in human gies, British Airways, and Credit Suisse. and organizational behavior, are a good exam- In carrying out this work, my objective was ple. In a 1996 study of a global food and bever- to determine which personal capabilities drove age company, McClelland found that when se- outstanding performance within these organi- nior managers had a critical mass of emotional Daniel Goleman is the author of Emo- zations, and to what degree they did so. I intelligence capabilities, their divisions outper- tional Intelligence (Bantam, 1995) and a grouped capabilities into three categories: purely formed yearly earnings goals by 20%. Mean- coauthor of Primal Leadership: Realizing technical skills like accounting and business while, division leaders without that critical the Power of Emotional Intelligence planning; cognitive abilities like analytical rea- mass underperformed by almost the same (Harvard Business School, 2002). He is soning; and competencies demonstrating emo- amount. McClelland’s findings, interestingly, the cochairman of the Consortium for tional intelligence, such as the ability to work held as true in the company’s U.S. divisions as Research on Emotional Intelligence in with others and effectiveness in leading change. in its divisions in Asia and Europe. Organizations, which is based at Rut- To create some of the competency models, In short, the numbers are beginning to tell gers University’s Graduate School of psychologists asked senior managers at the us a persuasive story about the link between a Applied and Professional Psychology in companies to identify the capabilities that typi- company’s success and the emotional intelli- Piscataway, New Jersey. He can be fied the organization’s most outstanding leaders. gence of its leaders. And just as important, re- reached at [email protected]. To create other models, the psychologists used search is also demonstrating that people can, if harvard business review january 2004 page 3 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 they take the right approach, develop their tion. “Their trivial demands take us away from emotional intelligence. (See the sidebar “Can the real work that needs to be done,” she might Emotional Intelligence Be Learned?”) explain. And she will go one step further and turn her anger into something constructive. Self-Awareness Self-awareness extends to a person’s under- Self-awareness is the first component of emo- standing of his or her values and goals. Some- tional intelligence—which makes sense when one who is highly self-aware knows where he is one considers that the Delphic oracle gave the headed and why; so, for example, he will be advice to “know thyself” thousands of years able to be firm in turning down a job offer that ago. Self-awareness means having a deep un- is tempting financially but does not fit with his derstanding of one’s emotions, strengths, weak- principles or long-term goals. A person who lacks nesses, needs, and drives. People with strong self-awareness is apt to make decisions that self-awareness are neither overly critical nor un- bring on inner turmoil by treading on buried realistically hopeful. Rather, they are honest— values. “The money looked good so I signed with themselves and with others. on,” someone might say two years into a job, People who have a high degree of self- “but the work means so little to me that I’m awareness recognize how their feelings affect constantly bored.” The decisions of self-aware them, other people, and their job performance. people mesh with their values; consequently, Thus, a self-aware person who knows that tight they often find work to be energizing. deadlines bring out the worst in him plans his How can one recognize self-awareness? First time carefully and gets his work done well in ad- and foremost, it shows itself as candor and an vance. Another person with high self-awareness ability to assess oneself realistically. People with will be able to work with a demanding client. high self-awareness are able to speak accu- She will understand the client’s impact on her rately and openly—although not necessarily moods and the deeper reasons for her frustra- effusively or confessionally—about their emo- The Five Components of Emotional Intelligence at Work Definition Hallmarks Copyright © 2003 Harvard Business School Publishing Corporation. All rights reserved. Self-Awareness the ability to recognize and understand your self-confidence moods, emotions, and drives, as well as their realistic self-assessment effect on others self-deprecating sense of humor Self-Regulation the ability to control or redirect disruptive impulses trustworthiness and integrity and moods comfort with ambiguity the propensity to suspend judgment – to think openness to change before acting Motivation a passion to work for reasons that go beyond strong drive to achieve money or status optimism, even in the face of failure a propensity to pursue goals with energy and organizational commitment persistence Empathy the ability to understand the emotional makeup expertise in building and retaining talent of other people cross-cultural sensitivity skill in treating people according to their emotional service to clients and customers reactions Social Skill proficiency in managing relationships and building effectiveness in leading change networks persuasiveness an ability to find common ground and build rapport expertise in building and leading teams harvard business review january 2004 page 4 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 tions and the impact they have on their work. a week later, she was supporting the project fully. For instance, one manager I know of was skeptical Such self-knowledge often shows itself in the about a new personal-shopper service that her hiring process. Ask a candidate to describe a company, a major department-store chain, was time he got carried away by his feelings and about to introduce. Without prompting from did something he later regretted. Self-aware her team or her boss, she offered them an ex- candidates will be frank in admitting to failure— planation: “It’s hard for me to get behind the and will often tell their tales with a smile. One rollout of this service,” she admitted, “because I of the hallmarks of self-awareness is a self- really wanted to run the project, but I wasn’t deprecating sense of humor. selected. Bear with me while I deal with that.” Self-awareness can also be identified during The manager did indeed examine her feelings; performance reviews. Self-aware people know— Can Emotional Intelligence Be Learned? For ages, people have debated if leaders are with the Consortium for Research on Emo- opinions on any given subject did not mesh born or made. So too goes the debate about tional Intelligence in Organizations has shown with his, they, too, were frightened of him. emotional intelligence. Are people born with they can even have a negative impact on peo- Enlisting the help of a coach, the executive certain levels of empathy, for example, or do ple’s job performance. went to work to heighten his empathy through they acquire empathy as a result of life’s expe- To enhance emotional intelligence, organi- practice and feedback. His first step was to riences? The answer is both. Scientific inquiry zations must refocus their training to include take a vacation to a foreign country where he strongly suggests that there is a genetic com- the limbic system. They must help people did not speak the language. While there, he ponent to emotional intelligence. Psychological break old behavioral habits and establish new monitored his reactions to the unfamiliar and and developmental research indicates that ones. That not only takes much more time his openness to people who were different nurture plays a role as well. How much of each than conventional training programs, it also from him. When he returned home, humbled perhaps will never be known, but research and requires an individualized approach. by his week abroad, the executive asked his practice clearly demonstrate that emotional Imagine an executive who is thought to be coach to shadow him for parts of the day, sev- intelligence can be learned. low on empathy by her colleagues. Part of that eral times a week, to critique how he treated One thing is certain: Emotional intelligence deficit shows itself as an inability to listen; she people with new or different perspectives. At increases with age. There is an old-fashioned interrupts people and doesn’t pay close atten- the same time, he consciously used on-the-job word for the phenomenon: maturity. Yet even tion to what they’re saying. To fix the problem, interactions as opportunities to practice with maturity, some people still need training the executive needs to be motivated to “hearing” ideas that differed from his. Finally, to enhance their emotional intelligence. Un- change, and then she needs practice and feed- the executive had himself videotaped in meet- fortunately, far too many training programs back from others in the company. A colleague ings and asked those who worked for and with that intend to build leadership skills—includ- or coach could be tapped to let the executive him to critique his ability to acknowledge and ing emotional intelligence—are a waste of know when she has been observed failing to understand the feelings of others. It took sev- time and money. The problem is simple: They listen. She would then have to replay the inci- eral months, but the executive’s emotional in- focus on the wrong part of the brain. dent and give a better response; that is, dem- telligence did ultimately rise, and the improve- Emotional intelligence is born largely in the onstrate her ability to absorb what others are ment was reflected in his overall performance neurotransmitters of the brain’s limbic system, saying. And the executive could be directed to on the job. which governs feelings, impulses, and drives. observe certain executives who listen well and It’s important to emphasize that building Research indicates that the limbic system to mimic their behavior. one’s emotional intelligence cannot—will learns best through motivation, extended With persistence and practice, such a process not—happen without sincere desire and con- practice, and feedback. Compare this with the can lead to lasting results. I know one Wall certed effort. A brief seminar won’t help; nor kind of learning that goes on in the neocortex, Street executive who sought to improve his can one buy a how-to manual. It is much which governs analytical and technical ability. empathy—specifically his ability to read peo- harder to learn to empathize—to internalize The neocortex grasps concepts and logic. It is ple’s reactions and see their perspectives. Be- empathy as a natural response to people— the part of the brain that figures out how to fore beginning his quest, the executive’s sub- than it is to become adept at regression analy- use a computer or make a sales call by reading ordinates were terrified of working with him. sis. But it can be done. “Nothing great was a book. Not surprisingly—but mistakenly—it People even went so far as to hide bad news ever achieved without enthusiasm,” wrote is also the part of the brain targeted by most from him. Naturally, he was shocked when fi- Ralph Waldo Emerson. If your goal is to be- training programs aimed at enhancing emo- nally confronted with these facts. He went come a real leader, these words can serve as a tional intelligence. When such programs take, home and told his family—but they only con- guidepost in your efforts to develop high emo- in effect, a neocortical approach, my research firmed what he had heard at work. When their tional intelligence. harvard business review january 2004 page 5 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 and are comfortable talking about—their limi- component of emotional intelligence that frees tations and strengths, and they often demon- us from being prisoners of our feelings. People strate a thirst for constructive criticism. By engaged in such a conversation feel bad moods contrast, people with low self-awareness inter- and emotional impulses just as everyone else pret the message that they need to improve as does, but they find ways to control them and a threat or a sign of failure. even to channel them in useful ways. Self-aware people can also be recognized by Imagine an executive who has just watched their self-confidence. They have a firm grasp of a team of his employees present a botched analy- their capabilities and are less likely to set them- sis to the company’s board of directors. In the selves up to fail by, for example, overstretching gloom that follows, the executive might find on assignments. They know, too, when to ask himself tempted to pound on the table in anger for help. And the risks they take on the job are or kick over a chair. He could leap up and scream calculated. They won’t ask for a challenge that at the group. Or he might maintain a grim si- they know they can’t handle alone. They’ll play lence, glaring at everyone before stalking off. to their strengths. But if he had a gift for self-regulation, he Consider the actions of a midlevel employee would choose a different approach. He would who was invited to sit in on a strategy meeting pick his words carefully, acknowledging the with her company’s top executives. Although team’s poor performance without rushing to she was the most junior person in the room, any hasty judgment. He would then step back she did not sit there quietly, listening in awe- to consider the reasons for the failure. Are they struck or fearful silence. She knew she had a personal—a lack of effort? Are there any miti- head for clear logic and the skill to present gating factors? What was his role in the debacle? ideas persuasively, and she offered cogent sug- After considering these questions, he would call gestions about the company’s strategy. At the the team together, lay out the incident’s con- same time, her self-awareness stopped her sequences, and offer his feelings about it. He from wandering into territory where she knew would then present his analysis of the problem she was weak. and a well-considered solution. Despite the value of having self-aware peo- Why does self-regulation matter so much for ple in the workplace, my research indicates leaders? First of all, people who are in control that senior executives don’t often give self- of their feelings and impulses—that is, people awareness the credit it deserves when they who are reasonable—are able to create an en- look for potential leaders. Many executives vironment of trust and fairness. In such an en- mistake candor about feelings for “wimpiness” vironment, politics and infighting are sharply and fail to give due respect to employees who reduced and productivity is high. Talented openly acknowledge their shortcomings. Such people flock to the organization and aren’t people are too readily dismissed as “not tough tempted to leave. And self-regulation has a enough” to lead others. trickle-down effect. No one wants to be known In fact, the opposite is true. In the first place, as a hothead when the boss is known for her people generally admire and respect candor. calm approach. Fewer bad moods at the top Furthermore, leaders are constantly required mean fewer throughout the organization. to make judgment calls that require a candid Second, self-regulation is important for com- assessment of capabilities—their own and those petitive reasons. Everyone knows that business of others. Do we have the management exper- today is rife with ambiguity and change. Com- tise to acquire a competitor? Can we launch a panies merge and break apart regularly. Tech- new product within six months? People who nology transforms work at a dizzying pace. Peo- assess themselves honestly—that is, self-aware ple who have mastered their emotions are able people—are well suited to do the same for the to roll with the changes. When a new program organizations they run. is announced, they don’t panic; instead, they are able to suspend judgment, seek out infor- Self-Regulation mation, and listen to the executives as they ex- Biological impulses drive our emotions. We plain the new program. As the initiative moves cannot do away with them—but we can do forward, these people are able to move with it. much to manage them. Self-regulation, which Sometimes they even lead the way. Consider is like an ongoing inner conversation, is the the case of a manager at a large manufacturing harvard business review january 2004 page 6 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 company. Like her colleagues, she had used a their considered responses are taken as a lack certain software program for five years. The of passion. People with fiery temperaments program drove how she collected and reported are frequently thought of as “classic” leaders— data and how she thought about the com- their outbursts are considered hallmarks of pany’s strategy. One day, senior executives charisma and power. But when such people announced that a new program was to be in- make it to the top, their impulsiveness often stalled that would radically change how infor- works against them. In my research, extreme mation was gathered and assessed within the displays of negative emotion have never organization. While many people in the com- emerged as a driver of good leadership. pany complained bitterly about how disrup- tive the change would be, the manager mulled Motivation over the reasons for the new program and was If there is one trait that virtually all effective convinced of its potential to improve perfor- leaders have, it is motivation. They are driven mance. She eagerly attended training sessions— to achieve beyond expectations—their own some of her colleagues refused to do so—and and everyone else’s. The key word here is was eventually promoted to run several divi- achieve. Plenty of people are motivated by ex- sions, in part because she used the new tech- ternal factors, such as a big salary or the status nology so effectively. that comes from having an impressive title or I want to push the importance of self- being part of a prestigious company. By con- regulation to leadership even further and trast, those with leadership potential are moti- make the case that it enhances integrity, which vated by a deeply embedded desire to achieve is not only a personal virtue but also an orga- for the sake of achievement. nizational strength. Many of the bad things If you are looking for leaders, how can you that happen in companies are a function of im- identify people who are motivated by the drive pulsive behavior. People rarely plan to exag- to achieve rather than by external rewards? The gerate profits, pad expense accounts, dip into first sign is a passion for the work itself—such the till, or abuse power for selfish ends. Instead, people seek out creative challenges, love to learn, an opportunity presents itself, and people and take great pride in a job well done. They with low impulse control just say yes. also display an unflagging energy to do things By contrast, consider the behavior of the se- better. People with such energy often seem nior executive at a large food company. The restless with the status quo. They are persistent executive was scrupulously honest in his nego- with their questions about why things are done tiations with local distributors. He would one way rather than another; they are eager to routinely lay out his cost structure in detail, explore new approaches to their work. thereby giving the distributors a realistic un- A cosmetics company manager, for example, derstanding of the company’s pricing. This ap- was frustrated that he had to wait two weeks proach meant the executive couldn’t always to get sales results from people in the field. He drive a hard bargain. Now, on occasion, he finally tracked down an automated phone sys- felt the urge to increase profits by withhold- tem that would beep each of his salespeople at ing information about the company’s costs. 5 pm every day. An automated message then But he challenged that impulse—he saw that it prompted them to punch in their numbers— made more sense in the long run to counter- how many calls and sales they had made that act it. His emotional self-regulation paid off in day. The system shortened the feedback time strong, lasting relationships with distributors on sales results from weeks to hours. that benefited the company more than any That story illustrates two other common traits short-term financial gains would have. of people who are driven to achieve. They are for- The signs of emotional self-regulation, there- ever raising the performance bar, and they like fore, are easy to see: a propensity for reflection to keep score. Take the performance bar first. and thoughtfulness; comfort with ambiguity During performance reviews, people with high and change; and integrity—an ability to say no levels of motivation might ask to be “stretched” to impulsive urges. by their superiors. Of course, an employee who Like self-awareness, self-regulation often does combines self-awareness with internal motiva- not get its due. People who can master their tion will recognize her limits—but she won’t emotions are sometimes seen as cold fish— settle for objectives that seem too easy to fulfill. harvard business review january 2004 page 7 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 And it follows naturally that people who are Empathy driven to do better also want a way of tracking Of all the dimensions of emotional intelligence, progress—their own, their team’s, and their empathy is the most easily recognized. We have company’s. Whereas people with low achieve- all felt the empathy of a sensitive teacher or ment motivation are often fuzzy about results, friend; we have all been struck by its absence in those with high achievement motivation often an unfeeling coach or boss. But when it comes keep score by tracking such hard measures as to business, we rarely hear people praised, let profitability or market share. I know of a money alone rewarded, for their empathy. The very manager who starts and ends his day on the In- word seems unbusinesslike, out of place amid ternet, gauging the performance of his stock the tough realities of the marketplace. fund against four industry-set benchmarks. But empathy doesn’t mean a kind of “I’m Interestingly, people with high motivation OK, you’re OK” mushiness. For a leader, that remain optimistic even when the score is against is, it doesn’t mean adopting other people’s them. In such cases, self-regulation combines emotions as one’s own and trying to please ev- with achievement motivation to overcome the erybody. That would be a nightmare—it frustration and depression that come after a would make action impossible. Rather, empa- setback or failure. Take the case of an another thy means thoughtfully considering employees’ portfolio manager at a large investment com- feelings—along with other factors—in the pro- pany. After several successful years, her fund cess of making intelligent decisions. tumbled for three consecutive quarters, lead- For an example of empathy in action, con- ing three large institutional clients to shift sider what happened when two giant brokerage their business elsewhere. companies merged, creating redundant jobs in Some executives would have blamed the all their divisions. One division manager called nosedive on circumstances outside their control; his people together and gave a gloomy speech others might have seen the setback as evidence that emphasized the number of people who of personal failure. This portfolio manager, would soon be fired. The manager of another however, saw an opportunity to prove she division gave his people a different kind of could lead a turnaround. Two years later, when speech. He was up-front about his own worry she was promoted to a very senior level in the and confusion, and he promised to keep peo- company, she described the experience as “the ple informed and to treat everyone fairly. best thing that ever happened to me; I learned The difference between these two managers so much from it.” was empathy. The first manager was too wor- Executives trying to recognize high levels of ried about his own fate to consider the feelings achievement motivation in their people can of his anxiety-stricken colleagues. The second look for one last piece of evidence: commit- knew intuitively what his people were feeling, ment to the organization. When people love and he acknowledged their fears with his their jobs for the work itself, they often feel words. Is it any surprise that the first manager committed to the organizations that make that saw his division sink as many demoralized peo- work possible. Committed employees are likely ple, especially the most talented, departed? By to stay with an organization even when they contrast, the second manager continued to be are pursued by headhunters waving money. a strong leader, his best people stayed, and his It’s not difficult to understand how and why division remained as productive as ever. a motivation to achieve translates into strong Empathy is particularly important today as a leadership. If you set the performance bar component of leadership for at least three rea- high for yourself, you will do the same for the sons: the increasing use of teams; the rapid organization when you are in a position to do pace of globalization; and the growing need to so. Likewise, a drive to surpass goals and an retain talent. interest in keeping score can be contagious. Consider the challenge of leading a team. As Leaders with these traits can often build a anyone who has ever been a part of one can at- team of managers around them with the test, teams are cauldrons of bubbling emo- same traits. And of course, optimism and or- tions. They are often charged with reaching a ganizational commitment are fundamental to consensus—which is hard enough with two leadership—just try to imagine running a people and much more difficult as the num- company without them. bers increase. Even in groups with as few as harvard business review january 2004 page 8 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 four or five members, alliances form and clash- tention of talent, particularly in today’s infor- ing agendas get set. A team’s leader must be mation economy. Leaders have always needed able to sense and understand the viewpoints of empathy to develop and keep good people, everyone around the table. but today the stakes are higher. When good That’s exactly what a marketing manager at people leave, they take the company’s knowl- a large information technology company was edge with them. able to do when she was appointed to lead a That’s where coaching and mentoring come troubled team. The group was in turmoil, over- in. It has repeatedly been shown that coaching loaded by work and missing deadlines. Ten- and mentoring pay off not just in better per- sions were high among the members. Tinker- formance but also in increased job satisfac- ing with procedures was not enough to bring tion and decreased turnover. But what makes the group together and make it an effective coaching and mentoring work best is the na- part of the company. ture of the relationship. Outstanding coaches So the manager took several steps. In a se- and mentors get inside the heads of the people ries of one-on-one sessions, she took the time they are helping. They sense how to give effec- to listen to everyone in the group—what was tive feedback. They know when to push for frustrating them, how they rated their col- better performance and when to hold back. leagues, whether they felt they had been ig- In the way they motivate their protégés, they nored. And then she directed the team in a demonstrate empathy in action. way that brought it together: She encouraged In what is probably sounding like a refrain, people to speak more openly about their frus- let me repeat that empathy doesn’t get much trations, and she helped people raise construc- respect in business. People wonder how leaders tive complaints during meetings. In short, her can make hard decisions if they are “feeling” empathy allowed her to understand her team’s for all the people who will be affected. But emotional makeup. The result was not just leaders with empathy do more than sympa- heightened collaboration among members but thize with people around them: They use their also added business, as the team was called on knowledge to improve their companies in sub- for help by a wider range of internal clients. tle but important ways. Globalization is another reason for the rising importance of empathy for business leaders. Social Skill Cross-cultural dialogue can easily lead to mis- The first three components of emotional in- cues and misunderstandings. Empathy is an telligence are self-management skills. The last antidote. People who have it are attuned to two, empathy and social skill, concern a per- subtleties in body language; they can hear the son’s ability to manage relationships with message beneath the words being spoken. Be- others. As a component of emotional intelli- yond that, they have a deep understanding gence, social skill is not as simple as it sounds. of both the existence and the importance of It’s not just a matter of friendliness, although cultural and ethnic differences. people with high levels of social skill are rarely Consider the case of an American consultant mean-spirited. Social skill, rather, is friendli- whose team had just pitched a project to a po- ness with a purpose: moving people in the di- tential Japanese client. In its dealings with rection you desire, whether that’s agreement Americans, the team was accustomed to being on a new marketing strategy or enthusiasm bombarded with questions after such a pro- about a new product. posal, but this time it was greeted with a long Socially skilled people tend to have a wide silence. Other members of the team, taking the circle of acquaintances, and they have a knack silence as disapproval, were ready to pack for finding common ground with people of all and leave. The lead consultant gestured them kinds—a knack for building rapport. That to stop. Although he was not particularly fa- doesn’t mean they socialize continually; it miliar with Japanese culture, he read the cli- means they work according to the assumption ent’s face and posture and sensed not rejection that nothing important gets done alone. Such but interest—even deep consideration. He people have a network in place when the time was right: When the client finally spoke, it was for action comes. to give the consulting firm the job. Social skill is the culmination of the other Finally, empathy plays a key role in the re- dimensions of emotional intelligence. People harvard business review january 2004 page 9 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  What Makes a Leader? B EST OF HBR 1998 tend to be very effective at managing relation- formal status, he signed up the company to par- ships when they can understand and control ticipate in an annual Internet industry conven- their own emotions and can empathize with tion. Calling on his allies and persuading various the feelings of others. Even motivation con- divisions to donate funds, he recruited more tributes to social skill. Remember that people than 50 people from a dozen different units to who are driven to achieve tend to be optimistic, represent the company at the convention. even in the face of setbacks or failure. When Management took notice: Within a year of people are upbeat, their “glow” is cast upon the conference, the executive’s team formed conversations and other social encounters. They the basis for the company’s first Internet divi- are popular, and for good reason. sion, and he was formally put in charge of it. Because it is the outcome of the other di- To get there, the executive had ignored con- mensions of emotional intelligence, social ventional boundaries, forging and maintain- skill is recognizable on the job in many ways ing connections with people in every corner of that will by now sound familiar. Socially the organization. skilled people, for instance, are adept at man- Is social skill considered a key leadership ca- aging teams—that’s their empathy at work. pability in most companies? The answer is yes, Likewise, they are expert persuaders—a mani- especially when compared with the other com- festation of self-awareness, self-regulation, ponents of emotional intelligence. People and empathy combined. Given those skills, seem to know intuitively that leaders need to good persuaders know when to make an manage relationships effectively; no leader is emotional plea, for instance, and when an an island. After all, the leader’s task is to get appeal to reason will work better. And moti- work done through other people, and social vation, when publicly visible, makes such skill makes that possible. A leader who cannot people excellent collaborators; their passion express her empathy may as well not have it at for the work spreads to others, and they are all. And a leader’s motivation will be useless if driven to find solutions. he cannot communicate his passion to the or- But sometimes social skill shows itself in ganization. Social skill allows leaders to put ways the other emotional intelligence com- their emotional intelligence to work. ponents do not. For instance, socially skilled It would be foolish to assert that good-old- people may at times appear not to be fashioned IQ and technical ability are not im- working while at work. They seem to be idly portant ingredients in strong leadership. But schmoozing—chatting in the hallways with the recipe would not be complete without colleagues or joking around with people who emotional intelligence. It was once thought are not even connected to their “real” jobs. So- that the components of emotional intelli- cially skilled people, however, don’t think it gence were “nice to have” in business leaders. makes sense to arbitrarily limit the scope of But now we know that, for the sake of perfor- their relationships. They build bonds widely mance, these are ingredients that leaders because they know that in these fluid times, “need to have.” they may need help someday from people they It is fortunate, then, that emotional intelli- are just getting to know today. gence can be learned. The process is not easy. For example, consider the case of an execu- It takes time and, most of all, commitment. tive in the strategy department of a global But the benefits that come from having a well- computer manufacturer. By 1993, he was con- developed emotional intelligence, both for the vinced that the company’s future lay with the individual and for the organization, make it Internet. Over the course of the next year, he worth the effort. found kindred spirits and used his social skill to stitch together a virtual community that cut Reprint R0401H across levels, divisions, and nations. He then To order, see the next page used this de facto team to put up a corporate or call 800-988-0886 or 617-783-7500 Web site, among the first by a major company. or go to www.hbr.org And, on his own initiative, with no budget or harvard business review january 2004 page 10 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.  BEST OF HBR 1998 What Makes a Leader? Further Reading ARTICLES The Manager’s Job: Folklore and Fact The Ways Chief Executive Officers Lead by Henry Mintzberg by Charles M. Farkas and Suzy Wetlaufer Harvard Business Review Harvard Business Review March–April 1990 May–June 1996 Product no. 90210 Product no. 96303 Whereas Goleman emphasizes emotional in- CEOs inspire a variety of sentiments ranging telligence, Mintzberg focuses on specific skills. from awe to wrath, but there’s little debate In this HBR Classic, Mintzberg uses his and over CEOs’ importance in the business world. other research to debunk myths about the The authors conducted 160 interviews with manager’s role. Managerial work involves in- executives around the world. Instead of find- terpersonal roles, informational roles, and de- ing 160 different approaches, they found five, cisional roles, he notes. These in turn require each with a singular focus: strategy, people, the ability to develop peer relationships, carry expertise, controls, or change. The five com- out negotiations, motivate subordinates, re- ponents of emotional intelligence, singly or in solve conflicts, establish information networks combination, have a great effect on how each and disseminate information, make decisions focus is expressed in an organization. with little or ambiguous information, and allo- BOOK cate resources. Good self-management skills John P. Kotter on What Leaders Really Do are characteristic of most leaders; outstanding by John P. Kotter leaders also have the ability to empathize with Harvard Business School Press others and to use social skills to advance an 1999 agenda. Product no. 8974 The Work of Leadership In this collection of six articles, Kotter shares by Ronald A. Heifetz and Donald L. Laurie his observations on the nature of leadership Harvard Business Review gained over the past 30 years. Without leader- January–February 1997 ship that can deal successfully with today’s in- Product no. 97106 creasingly fast-moving and competitive busi- Successfully leading an organization through ness environment, he warns, organizations an adaptive challenge calls for leaders with a will slow down, stagnate, and lose their way. high degree of emotional intelligence. But He presents his views on the current state of Heifetz and Laurie focus on the requirements leadership through ten observations and re- of adaptive work, not on emotional maturity. visits his now famous eight-step process for The principles for leading adaptive work in- organizational transformation. In contrast to clude: “getting on the balcony,” forming a Goleman’s article on emotional intelligence, To Order picture of the entire pattern of activity; identi- which is about leadership qualities, Kotter’s fying the key challenge; regulating distress; work focuses on action: What does a leader do For Harvard Business Review reprints and maintaining disciplined attention; giving the to lead? And how will leadership need to be subscriptions, call 800-988-0886 or work back to the people; and protecting different in the future? 617-783-7500. Go to www.hbr.org voices of leadership from below. For customized and quantity orders of Harvard Business Review article reprints, call 617-783-7626, or e-mail [email protected] page 11 This document is authorized for use only by MARDI OKEEFE ([email protected]). Copying or posting is an infringement of copyright. Please contact [email protected] or 800-988-0886 for additional copies.