Emotional intelligence (EI), especially in the family business (FB) context, is the cornerstone that supports both the intricate family system and the organizational culture of their business. It's the magic ingredient that transforms personal connections into professional strengths. EI in a family owned and managed business is particularly powerful when focused on three fundamental competencies: self-awareness, other (social} awareness, and self-regulation.
3 Critical EI Skills
For family businesses seeking to weave a strong fabric of relationships and professional efficacy, EI becomes a trifecta of skills that can lead to outstanding outcomes.
Self-awareness: The ability to recognize emotions, connect them to triggers, and consciously manage the associated feelings and resulting behaviors. This is the foundational skill for emotional intelligence.
Other (Social) Awareness: The ability to use empathy to pick up on the emotions of others, understanding their perspectives and taking an active interest in their concerns. In a family business, where personal relationships are so closely tied to professional ones, social awareness can help navigate the emotional undercurrents that affect both the family and the business.
Self-regulation: Perhaps the most critical aspect in a family business setting, self-regulation involves managing one’s emotions and impulses. It’s about family members responding to business needs with rationality and professionalism, rather than personal sentiment or reactive emotions.
Embedding EI into the Family Business Culture
Incorporating EI into the very fabric of the family business culture strengthens not only the family's internal dynamics but also the organizational culture.
Enhanced Decision Making: Self-aware individuals are more adept at identifying their emotional biases, allowing for more balanced and objective decision-making in the business.
Improved Communication: When family members exercise social awareness, they communicate more effectively, leading to a healthier, more collaborative atmosphere that benefits all levels of the company.
Greater Conflict Management: Self-regulation is key to managing and resolving conflicts in a way that protects relationships and the business’s bottom line.
Cultivating EI: A Strategy for Success
Building EI within a family business means more than just recognizing its components—it requires deliberate action:
Introspective Practices: Encourage practices that foster self-awareness, such as journaling, feedback sessions, and mindfulness exercises.
Emotional Literacy Training: Regular workshops can hone family members’ abilities to recognize and understand the emotions of others, enhancing social awareness.
Role Modeling and Policies: Leadership should exemplify self-regulation through their actions, setting a precedent for behavior within the company, supported by policies that encourage emotional maturity.
Mastering EI—self-awareness, other (social) awareness, and self-regulation—is more than an investment in personal development; it's an essential strategy for family businesses aiming to fortify their legacy and ensure success across generations. By nurturing these EI competencies, family businesses can create a robust foundation for both their family and their organizational culture.
Resources:
Brooks, K. (2003). Primal Leadership: Realizing the Power of Emotional Intelligence, by Daniel Goleman, Richard Boyatzis, and Annie McKee (2002). Boston: Harvard Business School Press.
Ikart, E. M. (2023). Emotional Intelligence: Why Its Matters in Change Leadership and Innovation in the 21st Century Styles of Work.
Goleman, D., & Cherniss, C. (2024). Optimal: How to Achieve Personal and Professional Excellence Every Day. Harper Books.
Daniel Goleman’s official website (danielgoleman.info) contains articles, videos, and information on emotional intelligence.
The Consortium for Research on Emotional Intelligence in Organizations (creio.org) offers research and resources related to EI in the workplace.