Originally published on Forbes.com

Have you ever heard the saying, most people make decisions based on emotion and use logic to justify them? I won’t say I’ve found this to be absolutely true in my 25 years of coaching mid-sized professional service firms. But I would say that I’ve yet to meet a completely rational person, the kind who never allows emotion to sway their decisions, words and actions. If that unicorn exists, I’ve never met them.

This is particularly true among leaders of service firms. I’ve coached hundreds of professional service leaders and they all share one common trait: passion. They’re passionate about what they want to accomplish in business. They’re usually driven, strong-willed and deeply committed to their goals. They don’t quit when things get tough because they’re resolved. They inspire people around them with their tenacity.

If emotion plays such a prominent role in service leaders, why do we hear so little about it? Have you ever read a case study where the source of someone’s success was their emotions? I’ve never read that one. Usually, the story highlights intelligence, strategy, analysis or shrewdness. Or it might talk about character: integrity, perseverance and determination. But emotion—almost never.

However, the most successful leaders I’ve worked with share another trait in common: high EQ (emotional intelligence). They’re not always the smartest person in the room, and usually, they know it. But they have an almost uncanny ability to control their own emotions and to understand the emotional states of people around them. They’re not manipulative, but they are in control. Over time, they’ve developed a sixth sense that guides them and allows them to get the very best from themselves and their colleagues.

This is why I’ve come to believe that in the world of professional services, EQ matters more than IQ—especially for leaders. I’m not downplaying the importance of intelligence. But this is my singular observation. Not one of the 70-plus organizations I’ve coached has lacked intelligent people; that’s found all up and down their rosters. IQ was abundant. But EQ is what set apart the really effective leaders and companies from the underperformers.

In IQ-oriented companies, I’ve seen unhealthy competition, unproductive arguments and an unwillingness to acknowledge the strengths of someone else’s ideas. I’ve seen an unwillingness to relent—to admit that an idea someone sponsored may not be the best one.

In EQ-oriented companies, I’ve seen the opposite. Emotionally intelligent leaders quickly relent and readily acknowledge the genius of other people’s ideas. They praise far more than they criticize and they give, rather than take, credit. Their energy field leaves people feeling encouraged, focused and unafraid to try innovative new ideas.

Five Reasons To Prize EQ

After reflecting on the leaders I’ve coached and worked with over the last 20 years, I’ve identified five reasons to prize EQ over IQ.

1. You greatly decrease the likelihood of making decisions you’ll regret. Decision-making is risky territory. Leadership teams that cannot consistently practice a best-idea-wins approach put themselves at unnecessary risk. Decision-making requires healthy conflict and debate, a willingness to argue ideas but not people. A leadership team that practices EQ is far less likely to make bad decisions because their egos are in check. They define wins based on what’s best for the entire company, not their personal scorecard.
2. You deeply enhance trust with team members. There are two kinds of trust in business: trusting that someone will do what they say and trusting someone not to hurt you when they get the chance. It’s the latter form of trust that really matters. This frees people to be innovative without fear of embarrassment. Teams with high EQ are more inclined to take the kinds of risks that can produce huge breakthroughs.
3. You enhance performance from staff. In professional services, people are the product. If you can engender greater performance, most of the time it’ll go straight to the bottom line. What would it mean to your organization to see a 20% increase in EBITDA (earnings before interest, taxes, depreciation and amortization) without adding a single new staff member? I’ve seen emotionally intelligent teams accomplish feats that high-IQ teams said couldn’t be done.
4. You resolve conflicts with minimal disruption and without losing key staff. Every service firm I’ve coached has experienced conflict. But firms whose leaders practice high-EQ experience very different outcomes from mere IQ contenders. In IQ-only firms, conflict can lead to work stoppages, emergency situations and even key people unexpectedly quitting. In high-EQ firms, many conflicts are imperceptible to staff. They don’t even know there was a problem until they hear later about how it was resolved.
5. You weather crises with far less damage. Nearly every service firm I’ve coached has experienced a crisis at some point on its journey. This is when high EQ really pays off. Teams with EQ-oriented leaders tend to maintain morale, a focus on the mission and even psychological safety despite the crisis. They don’t blame each other but instead focus on solutions to get out of the crisis. Teams with IQ-oriented leaders often experience the opposite. They play the blame game, focus on the problem and experience a sense of impending doom.

How To Enhance EQ At Your Firm

If you want to experience the benefits of high EQ, I have a few recommendations.

• The leaders must go first. Staff will follow the example you set.
• Practice vulnerability by telling each other personal stories. When leaders reveal important details from their personal history, others tend to trust them more.
• Practice a best-idea-wins decision-making model. During deliberation, when you are evaluating potential options, separate the ideas from the people who introduced them. Give the ideas a name, like option A, so that it stands apart from the person who sponsored it.
• Practice inquiry far more than advocacy. Advocacy is about proving the worth of your point of view and arguing alternatives. Inquiry is about seeking to understand why someone holds a particular point of view.

While IQ is necessary and important, EQ is key to unlocking high performance for service firms.

About The Author

Randy Shattuck is a seasoned entrepreneur who works hand-in-hand with senior leaders of mid-size professional service firms to grow revenues, acquire clients, open new markets, increase profits and effectively position their brands.