What is Emotional Capital?
Today we’re working with a new balance sheet. Knowledge, or intellectual capital has been and is the highly valued stock in most businesses. It’s what businesses know and use to create products or solve problems and ultimately create wealth. Yet knowledge is only the first of two important assets in business. The second is emotional capital – the feelings, beliefs, perceptions and values that people hold when they engage with any business. It’s the emotional assets in your organization that determine whether or not people will work well for you, buy from you, employ you and enter into business with you.
Emotional Capital Three Core Elements:
1. External Emotional Capital – the value of the feelings and perceptions held by the customer and the external stakeholder towards your business. The only way to create real profit is to attract the emotional rather than the rational customer by appealing to his or her feelings and imagination. Customers want to buy from organizations they like and who are like them. This creates brand value and goodwill and results in repeat sales through customer loyalty, lifetime relationships and referrals. In other words, the brand creates trust and recognition and is a promise and an emotional contract with each customer.
2. Internal Emotional Capital -the value of the emotional commitments held in the hearts of the people within your business. It can be is seen in the energy and enthusiasm that people bring to work to create products and solve problems. Every relationship that your business has with everyone it touches is an asset and an investment. To build emotional wealth you must treat your people as investors because that is what they are — intellectual and emotional investors. Every day they bring their heads and hearts to work. And if they don’t, you won’t be in business very long.
3. Intra-personal Emotional Capital – the level of positive, focused energy that you invest at work and in your personal life. As a leader, you will inspire or demoralize others first by how effectively you manage your own emotional energy and, second, by how well you mobilize, focus and renew the collective energy of the people you lead.
Why Emotional Capital Matters
First, emotional capital is valuable because it creates strong relationships that enable people to achieve effective collective outcomes. Research shows that the key factors driving job satisfaction are relationships with managers, company culture, advancement opportunities, and opportunities to work with others. Employees are simply more and more unwilling to stay in an unhappy work environment. Therefore, leaders who create cultures of passionate people maximize the productive potential of the human capital in the business.
Second, everybody knows that attracting and retaining talented people is the most important strategic issue for every company today and tomorrow. The most competitive market of the future is the labor market. To attract the most talented people, companies and organizations must focus on building exceptional workplace cultures where passionate people can innovate and drive change.
How Do You Build Emotional Capital
In the last ten years, the most sensational strategy for building emotional capital has been to focus on developing emotional intelligence. Emotional intelligence is an indispensable set of social and emotional competencies for leveraging knowledge and emotions to drive positive change and business success.
Emotional Capital Report (ECR)
There are many ways of gaining feedback on performance, but by far the most credible and compelling way is to benchmark emotional and social competencies and provide feedback using high-quality psychometric assessment tools. Comparing our skills against a well-established benchmark of peer performance clarifies where we currently stand and has the effect of engaging our internal drive to improve.
Rigorous scientific research has identified ten emotional skills that drive leadership performance and separate great leaders from the rest. These ten skills can now be accurately measured by the Emotional Capital Report (ECR)– the world’s first scientifically developed psychometric for measuring emotional intelligence and leadership. The ECR™ offers a unique assessment of the components of emotional intelligence that are empirically linked to leadership performance and provides a wealth of coaching strategies tailored to each individual’s development needs.
ECR 360 Report
- Delivers two development reports – a 19-page ECR ‘Self’ report & a 21-page ECR Multi-Rater report
- Simple, self-directed online management & administration of raters including: manager, peers, direct reports & ‘other’
- Rater scores are compared to ‘Self’ scores to yield a gap analysis & an understanding of differences in self/other perception
- Includes a Verbatim Section that allows raters to elaborate on responses
- Includes a Coaching Section & action plan for improving leadership performance & for building emotional intelligence systematically
How Does it Work?
If you are an individual wanting to build your personal emotional intelligence, the report is delivered immediately to your desktop.
See Here for a sample ECR360 multi-rater report.
Click Here for a full ECR technical research paper.
Send Josie an email to enquire about ECR360 for your workplace.