Larry OToole CEO Sanders Industries Holdings, Inc . Create - - PowerPoint PPT Presentation

Larry O’Toole

CEO Sanders Industries Holdings, Inc.

Create sustainable competitive advantages that drive enterprise value

Trailing Twelve Months (TTM) EBITDA X Multiple - Debt

“No matter what leaders set out to do – whether it’s creating strategy or mobilizing teams to action – their success depends on HOW they do it. Even if they get everything else just right, if leaders fail in the primal task of driving emotions in the right direction, nothing they do will work as well as it could or should.”

Daniel Goleman

“Too much college…. too little kindergarten”

Daniel Goleman

Emotional Quotient Emotional Intelligence

Intelligent about Emotions

What is EQ?

Awareness of your surroundings Awareness

• f

yourself Relationship management

• - Caring --

Self management & self control

Said another way….. EQ is a person’s ability to read a situation, read the emotions of those around them, understand their own emotions AND to act appropriately using these emotions.

People don’t leave companies, they most

• ften leave

bosses

Deloitte Global Human Capital Trends, 2014

5 Elements of a Highly Engaged Workforce

 The work itself  The flexibility and inclusion of the workplace  People’s ability to learn and grow  The management environment  Trust and meaning from leadership

Meetings Productive discourse or create water cooler fodder? Leadership Visibility What’s he/she doing here? Live behind closed doors? Employee feedback Productive or require clean up? Planning Left brain focus on Strategy and analysis…attention to the right?

Cul·ture – (kəlCHər) – noun

“what your employees do when no one is watching”

 They are still talking long after folks have

nodded off…or left the room

 Their mouth has 200,000 miles on the

• dometer, yet their ears are still under

warranty

 Their definition of “employee recognition”

is not bumping into you when passing in the hallway

 Forget knowing your name….they don’t

even know you work there

 Brainstorming exercises are like skeet

shooting contests…you toss up the ideas…they shoot them down

 They believe that using “Dear, Honey and

Sweetheart” are endearing terms at work

 They are 100% committed…to themselves  They thought Mike Tyson’s ear biting tactic

was an innovative channeling of initiative

“What you learned in school just provides the threshold competence; you need it to get in the field, but it does not make you a

• star. It’s the emotional intelligence

abilities that matter more for superior performance” Lyle Spencer, Jr. co-founder Hay/McBer Consulting Study of Harvard graduates

• Medicine, Teaching, Business & Law
• Correlated entrance exam scores &

ultimate career progress

Evergreen Project

2 4 6 8 10 12

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

Shareholder return in dollars

Winners Tumblers Climbers Losers

Source: HBR, What Really Works, July 2003

Aligned Companies Generate the Greatest Returns

Study results - Leadership was key – “Winners” have alignment around:  strategy  structure  culture  execution

• ----Factors of EI-----

30% – 40% of variability in performance is a result of leadership 58% of all initiatives do not succeed due to people issues---inability to lead Organizations with superior leadership capability outperform annual earnings goals by 20% to 30%

Hay/McBer research 1999

Six Styles of Leadership Visionary, Affiliative, Democratic, Coaching, Coercive, Pacesetter

( ) ( )

IQ

Technical Skill Management Principles

IQ

Technical Skill Management Principles

EQ Emotional Quotient Performance Differentiator

Hay/McBer research

 More employees working virtually –

email and phones as tools for interaction

• Technology “impersonalizing” the workplace

 More project type employees – shorter time

to engage them to full effectiveness

 Changing diversity in the workplace

• Age, race, religion

 Greater globality requiring sensitivity to

• ther cultures

 High job uncertainty & insecurity –

workplace stress

 High degree of family & community stress

It is not “soft” It is not “nice” ….it’s effective

Would you want low or high EQ in a leader doing a turn around?

Can you have high EI and low ethics? Can you develop EI?

Can an organization be successful if the leader doesn’t possess it?

EQ & Interviewing

Team vs Solo work Resume “walk” Bosses/Environments People issues Engaging people Ask two part questions Receptionist & waiter

 Get a mentor and ask for direct feedback  Have an outsider observe you in action  Establish a confidant at the office to share

• bservations

 Assess your style with your peers, superiors

and subordinates

 Get help conducting an assessment  Search the web…it’s content heavy

• Youtube and search Daniel Goleman

• On line assessments:
• Myskillsprofile.com
• Arealme.com
• Edu-nova.com
• Formal assessments can be performed
• Quality Reading:
• “Primal Leadership” by Daniel Goleman
• “Linking Emotional Intelligence and

Performance at Work” by Vanessa Druskat

• Harvard Business Review

• EQ is not a fad…proven EV enabler
• Determine the EQ of your company
• Reach out for external assessment help
• Don’t underestimate it’s connection to culture!

Larry O’Toole Email: LTOTOOLE@cox.net