Business leaders have all the knowledge they need to forge a successful company. They know everything they need to know about their industry, and they might even have the creativity to imagine innovative ways to move forward. But without emotional intelligence, also known as emotional quotient (EQ), you'll hit a wall.
Having emotional intelligence makes a founder self-aware, accountable, and approachable. As a result, they can lead a sales team with a fantastic culture, ensuring customer satisfaction and business success. It gives you the ability to recognize, understand, manage, and influence emotions, both in yourself and in others.
Despite it being a vital skill for effective leaders, though, it's hard to develop this skill if you don't possess it naturally. Fortunately, there are ways to get around this, including fractional leadership. How? Stick around, and I'll explain.
Success stories of startups are all around us. Uber, Airbnb, Slack–if they can do it, why can't you? But the truth is that only about 1% of start ups turn into these "unicorn" businesses. And that's because pioneering growing businesses is hard.
The startup ecosystem is characterized by high pressure, as founders aim high to bring innovative ideas to market rapidly, often racing against time and competition. This pressure can be super stressful, impacting overall wellbeing and, as a result, decision making.
Pressure is far from the only hurdle, though. Startups face some pretty unique challenges:
Emotional intelligence plays a crucial role in helping founders to navigate these challenges, particularly when it comes to team friction. EQ can foster a supportive and resilient company culture, where team members feel valued and understood.
In essence, emotional intelligence equips startup founders with the tools to lead with empathy and insight, transforming challenges into opportunities for growth and innovation. So, what makes a great, emotionally intelligent leader?
The term "emotional intelligence" was coined by John Mayer and Peter Salovey in 1990. However, it was psychologist Daniel Goleman who really made the term what it is today in his book Emotional Intelligence.
His framework includes five key components, and each one plays a crucial role in effectively leading an early-stage startup.
Self awareness is the ability to recognize and understand your own emotions, strengths, weaknesses, and motivations.
How this looks for startup leaders: Being cognizant of how your emotions affect your decision-making can make your business practices fairer and more transparent. By being self-aware, leaders can make more informed decisions and remain grounded, which also fosters trust and transparency among the team.
Self-regulation is all about managing emotions and impulses. It means staying in control and adapting to changing circumstances with care.
How this looks for startup leaders: Self-regulation is vital for maintaining composure under pressure. Knowing how to regulate your emotions means you can avoid rash decisions that might jeopardize your venture. It sets a stable tone for the whole team.
In the context of emotional intelligence, motivation refers to being driven by internal factors like passion and commitment, as opposed to external factors like praise.
How this looks for startup leaders: Motivated leadership is much better for leaders. It means you can lead the team with dedication and enthusiasm. In fact, it's essential for navigating the uncertainties of startup life and keeping the team aligned with the company's mission.
Empathy is all about better understanding the feelings of others. How well can you put yourself in the shoes of others, including your employees?
How this looks for startup leaders: Empathetic leaders can build strong relationships with their team by recognizing their needs, concerns, and aspirations. This fosters a supportive and inclusive work environment that enhances team collaboration through morale.
A range of interpersonal skills are important for emotional intelligence. This includes effective communication, conflict resolution, and leadership.
How this looks for startup leaders: Strong social skills are essential for creating a cohesive team. But beyond sales leadership, they're also vital for building networks and negotiating with stakeholders. Beyond all else, these skills can make a huge difference if you have them in your leadership team.
All of this is fairly self-explanatory, but what happens if you don’t possess these skills? A fractional CRO might be able to help you. Get in touch with me to find out more.