Mastering Emotional Intelligence Is the Key to Effective Leadership and Team Building Why EI is vital for leaders and team dynamics, and how to boost yours.

As the call began, Ivan (not his real name), the CEO of a B2B tech company, exchanged pleasantries with a tech analyst at a marquee firm. He answered initial questions matter-of-factly until the analyst began to question the viability and market need of the product being discussed. Ivan's voice grew increasingly loud, tinged by anger, until he yelled, "You call yourself an analyst? You don't know what you're talking about!" and then hung up.

This is not what you'd call a good first impression.

Being able to understand and control your emotions and recognize and influence those of others is known as emotional intelligence (EI). In the leadership realm, it has received increasing recognition as a crucial skill for effective management and team building, partly because of how powerfully it influences motivation and performance.

Let's dive into the specifics of EI, its effects on team dynamics and how to develop it.

The four factors

Psychologist Daniel Goleman, author of the 1995 book Emotional Intelligence: Why It Can Matter More Than IQ, identified four components of EI: self-awareness, self-management, social awareness and relationship management.

• Self-awareness is understanding your strengths, weaknesses, emotions, beliefs and motivations. Leaders skilled at identifying and controlling their emotions are better at understanding the emotions of others and have a better grasp of employee motivation.
• Self-management is the capacity to control emotions, behaviors and impulses, and it improves the more self-awareness you have. Understanding how you're feeling and why will help you behave in a way that's appropriate to the situation.
• Social awareness refers to recognizing the emotions of others and addressing them. It's easier to assess people's emotions if you are more aware of your own, and it's easier to form and retain relationships if you can correctly gauge others' emotions. Socially skilled leaders know they can't succeed on their own. Cooperation, good communication and a shared vision are necessary for meeting objectives and milestones.
• Relationship management refers to the capacity for coaching, mentoring, persuasion and successful dispute resolution.

Related: Do You Make Your Coworkers Feel Uncomfortable? Fix These 6 Behaviors Before It's Too Late.

Benefits of high EI

Strong EI skills are crucial for leaders, partly because of their capacity to motivate and inspire teams, resolve conflicts, and foster a positive work culture. As a result, their absence can come with significant consequences. Researchers from DePaul University found that teams with individuals lacking self-awareness make worse decisions and are less effective at conflict management.

Another study published in the Journal of Applied Psychology found that those who demonstrated empathy and emotional awareness were more successful at motivating and inspiring teams. Yet another, published in the International Journal of Conflict Management, showed that people who could regulate their emotions effectively were more successful in resolving conflicts within teams.

As a leader, I strive to create a culture that's receptive to everybody's needs and desires and have found that one of the most effective ways to do this is by hosting regular summit meetings — engaging in an open dialogue about what's working in the company, what's not and how to change the latter. We did this recently at an in-person team event, which yielded new insights and goals as we celebrated successes, learned new skills and strengthened relationships while planning for the next quarter.

Related: 5 Tips for Effective Team Meetings

Developing EI

When it comes to emotional intelligence, leaders don't start on a level playing field. Some are more naturally gifted than others, but rest assured: This quality can be cultivated. How?

• Active learning: Make a habit of staying current in terms of EI-related studies and tactics, as well as applying resulting methods to your interactions and then analyzing their effectiveness.
• Self-examination: You will get better at understanding biases, emotional triggers and patterns by routinely assessing your emotional reactions. This encourages restraint and results in better-reasoned conclusions.
• Feedback: Asking for input from many sources will reveal important information about your emotional strengths and challenges.
• Training: Coaching and training programs provide useful tools to enhance EI — improving overall efficacy and decision-making skills via practice and other fine-tuning.
• Be mindful: Being fully present in the moment markedly improves decision-making and emotional regulation.

Related: How Mindfulness Can Take Your BIZ Experiencesship to the Next Level

Its role in team dynamics

If you have low EI but refuse to address that deficit, you'll fight an uphill battle when motivating teams. For instance, according to the Harvard Business Review, leaders with low self-awareness aren't as effective at conflict management and decision-making.

But as crucial as this quality is, it's also tricky to self-identify; another Harvard Business Review story, written by organizational psychologist and executive coach Tasha Eurich, included the startling fact that 95% of study participants characterize themselves as self-aware, yet only 12% of the population actually is. And the effect on team interactions is dramatic. That same research found that a lack of self-awareness among coworkers can reduce a team's success by half, create more stress and demotivate people. A leader with low self-awareness will only amplify those negative results.

Related: How to Lead With Emotional Intelligence in 2023 and Beyond

In today's corporate landscape, EI is critical for effective leadership. High levels equip individuals with the skills to motivate teams, enhance performance and nurture positive cultures. Studies make plain its impact on conflict resolution, team dynamics and overall success, but developing this group of qualities requires determined and consistent effort. As EI's transformative potential shapes the future of leadership, investing in yours is critical to lasting success.