0:06 what I'd like to do is share with you
0:08 how emotional intelligence can help us
0:11 be better betas and why it's this
0:14 skillset particularly which is going to
0:17 help along the way and buy emotional
0:20 intelligence I simply mean how we handle
0:22 ourselves manage ourselves lead
0:24 ourselves and how we handle our
0:26 relationships and I'll go into it in
0:29 more detail interestingly I spent
0:33 yesterday morning with one of the big
0:36 four banks here in Australia the CEO his
0:38 direct reports and his high potentials
0:40 the people that they saw as next
0:43 generation for top leadership there and
0:45 they wanted to learn about emotional
0:48 intelligence and leadership the reason
0:51 was that not only are each of those
0:54 executives trying to improve themselves
0:57 along these lines but they see that by
0:58 doing it together
1:01 they can bring the whole organization
1:04 along and by doing that they can grow
1:06 their business it's actually a strategic
1:12 decision there are two kinds of strategy
1:16 you know one is exploitation and one is
1:22 exploration exploitation was embodied by
1:28 the co-ceos of blackberry anybody here
1:32 have a blackberry exactly my point
1:36 so the could they had a wonderful
1:38 product for a long time they were the
1:43 first in the smartphone area and in that
1:46 space they captured the market until
1:48 something else started to happen
1:51 smartphones were developed by Apple by
1:53 Samsung and they didn't see it coming
1:55 they just kept developing their keyboard
2:01 in fact in 2007 there was a small squib
2:03 in what was then the major news magazine
2:05 in America Time magazine it said you
2:07 know there's a new word in the English
2:09 language the word is Bissell it stands for
2:10 for
2:12 puzzled and pissed off and it's how you
2:15 feel when someone takes out their
2:17 blackberry and starts talking to some
2:20 one else things have changed the norms
2:22 for attention to changed now we don't
2:24 feel fizzled but also you can tell it
2:26 was ten years ago because they said
2:30 blackberry instead of iPhone so the
2:34 other strategic approach is exploration
2:36 that's what Steve Jobs was brilliant at
2:38 it's looking at the next new thing
2:41 innovating being able to be there before
2:44 your competitors so emotional
2:47 intelligence may seem counterintuitive
2:50 but I'm gonna argue that it's what makes
2:54 us better betas I first started to
2:56 realize the importance of emotional
3:01 intelligence years ago when I went to
3:05 college I grew up in a farm town in the
3:07 Central Valley of California and
3:11 actually the outskirts of Perth reminded
3:15 me of where I grew up but this town was
3:18 not distinguished anyway but I managed
3:20 to get into the most competitive college
3:21 in America because they wanted to
3:24 diversify they wanted a kid who was from
3:26 a public school instead of an elite prep
3:29 school and from somewhere else in those
3:31 days that was considered diversification
3:36 so I found myself at this fancy College
3:41 and met a guy who had perfect scores on
3:44 every college entrance exam this guy was
3:47 brilliant high IQ but he had a problem
3:50 the problem was he couldn't get up in
3:51 the morning on time never got to class
3:54 never finished his papers took him eight
3:56 years to get his bachelor's degree so he
3:59 was brilliant on the IQ side he was
4:01 lacking in terms of how he managed
4:05 himself some years later I went to my
4:08 20th high school reunion and I met
4:09 someone there who was the most
4:12 successful person in our class at that
4:14 time and I had known him pretty well in
4:17 high school he was someone who was
4:19 really not a good student he was so-so
4:22 like an average very average student but
4:24 he was a fantastic human being he was
4:26 the kind of person who you enjoyed doing
4:27 things with who really listened it was
4:29 very gracious but you at your ease you had
4:30 had
4:33 fun with him 20 years later he was the
4:36 senior vice president of a company that
4:39 then it was the hottest company going
4:41 the hottest sector going was cable
4:44 television then at the 40th reunion I
4:45 got the rest of the story
4:50 this guy had left that company started
4:53 his own company became CEO sold it at
4:56 the peak of the market and did something
4:58 that from the point of view of all the
5:00 people who lived in my hometown was a
5:02 mark of success and that was that he
5:08 lived on a golf course in Florida so he
5:10 had a lot of emotional intelligence
5:14 not much IQ and that makes sense to me
5:20 it I met recently a the CEO of Blackrock
5:23 Blackrock is the world's largest
5:25 investment company it manages trillions
5:29 of dollars and he he was puzzled he said
5:32 can you explain why it is that I hire
5:34 the best and the brightest from the very
5:36 best schools or companies and I still
5:40 have a bell curve for performance what's
5:43 going on here and I'd like to share with
5:45 you the answer I gave him it has to do
5:48 with some research I did after I wrote
5:50 emotional intelligence I got very
5:52 interested in business and remembered
5:54 that my mentor at back in graduate
5:58 school had written an article in the
6:00 Maine psychology journal that was my
6:02 field that was very controversial at the
6:06 time he said if you want to hire someone
6:08 don't look at their IQ don't look at
6:10 their personality tests don't really
6:12 look at their business expertise what
6:13 you want to do is look in your own
6:16 company at people who hold that position
6:19 now or of held it in the past identify
6:21 by whatever metric makes sense for that
6:26 position the top 10% the stars and
6:29 compare the stars with people in the
6:31 same position who are only average in
6:35 performance do a systematic analysis and
6:38 identify the skills or abilities or
6:40 competencies you see in the stars that
6:41 you don't see in the average it's called
6:43 competence modeling anybody familiar
6:46 competence modeling most world-class
6:48 companies have competence models
6:49 particularly for top-level executives
6:54 and I was able to get access to one to
6:56 two hundred of these which was not easy
6:58 because these are proprietary studies
7:01 companies don't share the data they want
7:02 to know they're doing it for competitive
7:04 reasons but here's what I found I a
7:08 grenade at the data and I just looked at
7:10 this is very back of the envelope how
7:13 many of those abilities the companies
7:15 themselves independently have identified
7:21 as distinguishing their stars how many
7:23 of those abilities are based on
7:27 cognitive strengths IQ and technical
7:29 skills or emotional intelligence how we
7:31 handle ourselves and our relationships
7:33 and what I found was it for jobs of all
7:37 kinds emotional intelligence is about
7:40 twice as important and it's twice as
7:43 important in distinguishing that that
7:47 blue line at the bottom is what you
7:50 learned in school at your technical
7:52 skills it's what everyone else has
7:56 those are threshold competencies what
7:59 you need to get the job but they don't
8:01 tell you how you'll do once you're in
8:04 the job will you be a star performer
8:06 would be a great team member will you
8:09 become a leader the higher you go in the
8:11 organization the more emotional
8:13 intelligence matters so for top-level
8:18 job c-suite jobs for example 80 to 90%
8:20 of the competencies the companies
8:22 themselves identify as distinguishing
8:25 stars here are based on emotional
8:28 intelligence it makes sense because what
8:31 you're doing at that point is not using
8:34 your technical skills or whatever you've
8:37 learned for that position in terms of
8:38 cognitive abilities what you're doing
8:41 mostly is managing people the art of
8:43 leadership is getting work done well
8:48 through other people so there was just a
8:53 study done of Engineers and what
8:56 distinguished the best engineers from
8:57 average engineers
9:00 turns out success as judged by their
9:02 peers people who know the job well and
9:08 the person well correlates zero with IQ
9:11 and enormous ly with emotional
9:14 intelligence why would that be it's
9:17 because there's a floor effect to be an
9:20 engineer to be an MBA to be a
9:23 professional of any kind you need an IQ
9:26 about a standard deviation above the
9:28 norm above a hundred need to be 115 or
9:32 better the for effect is once you are in
9:35 that role everyone else is as smart as
9:36 you are
9:38 so IQ drops away as a predictor of
9:41 success emotional intelligence remains
9:46 this one ability here in the top level
9:49 jobs that's based on cognitive abilities
9:52 is very telling its big-picture thinking
9:55 pattern recognition understanding how a
9:57 change here in a complex system is going
9:59 to ramify over there or how a decision
10:02 made today will matter in five years or
10:06 ten years this allows you to identify
10:09 your strategy but once you have your
10:13 strategy you can only get there through
10:15 your people you have to do what you have
10:20 to communicate persuade listen dialogue
10:23 inspire motivate and all of those are
