Why Automotive Leaders Need Emotional Intelligence with Daniel Goleman

Oct 31, 2024

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Emotional intelligence—defined as the ability to recognize, understand, and manage our emotions and those of others—might sound like just another "soft skill." But what if it's the key to effective leadership, a strong workplace culture, and even a healthier bottom line?

In this episode of the Automotive Leaders Podcast, we're talking about how emotional intelligence (EI) is reshaping leadership and culture within the rapidly changing automotive industry. To explore this topic, we bring in Daniel Goleman, a psychologist and bestselling author of Emotional Intelligence—a book that delves into why our emotional smarts matter as much as our IQs.

Self-awareness, self-management, empathy, and social skills are the four fundamental pillars of emotional intelligence. But why do these skills matter? According to Daniel, in an evolving industry like automotive, leaders who embrace these skills do more than just improve morale; they create a culture that fosters innovation.

Citing a Harvard study, Daniel explains that emotionally intelligent leaders create an “optimal state” for employees, leading to high engagement, low turnover, and true satisfaction. However, this requires a work culture where people feel safe to innovate, make suggestions, and take risks without fear—a rare find in industries still skeptical of prioritizing emotions at work.

Adding a psychologist’s perspective, Dan says fear shuts down the brain’s ability to perform at its best. Instead of thriving, people just play it safe. He emphasizes the need for leaders to focus on what’s going right, motivating with encouragement rather than criticism.

Citing a powerful line from Daniel’s book, Jan emphasizes the call for a complete rethinking of the systems that have long defined the industry. Daniel’s advice to leaders? Start with openness. Listen first, ask questions, and avoid assuming you have all the answers. As Jan points out, transforming the industry isn’t just about new tech; it’s about reshaping the operating model and culture, with emotional intelligence as the driving force.

Themes discussed in this episode:

Emotional intelligence and its positive impact on automotive leadership
Exploring the four pillars of emotional intelligence and why they’re essential for effective leadership
The challenges and limitations of traditional, hierarchical leadership models in the automotive industry
Why the automotive industry needs a cultural shift—from fear-based management to emotionally intelligent, people-centered leadership
How fostering a culture of trust and safety encourages team members to share ideas, take risks, and contribute to organizational innovation
Actions leaders can take to reach an optimal state for higher performance
Practical ways for leaders to develop and strengthen their emotional intelligence, boosting their effectiveness and organizational impact

Featured guest: Daniel Goleman

What he does: Daniel Goleman is a psychologist, science journalist, and pioneering author best known for his best-selling book Emotional Intelligence, which introduced the concept of EI and redefined leadership, education, and interpersonal relationships worldwide. Ranked among the world’s top business thinkers by The Wall Street Journal, Daniel has worked with global organizations to show how social and emotional competencies profoundly impact business success. His extensive work has earned him prestigious awards, including Harvard’s Centennial Medallion and the HBR McKinsey Award for best article of the year. Daniel’s research and teachings have evolved into an acclaimed online Emotional Intelligence Program, where he offers courses to build key EI skills such as self-awareness, self-management, empathy, and social skills.

On Leadership: “The best way to get performance out of people is to say what's positive about them, what's positive about what we're all doing together about our mission, and that is a very different way. Leaders, I think, should be more careful about how they give performance feedback because, very often, it's just like, "Oh, you really screwed that up,” which kills motivation. If you say, I know you're good at this, and you're good at that, and you're good at that, you could get better at this, and here's how. It's a much more positive way, and it has a very positive impact on the systems that operate inside us. I'm talking about neurotransmitter systems and brain chemicals that help us be at our best.”

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Episode Highlights:

[00:05:19] Why Emotional Intelligence Matters: Leaders must recognize that emotions impact every decision—whether at work or home—and ignoring this connection affects performance. It's time to say goodbye to command-and-control leadership, as Daniel labels it the worst kind of leadership approach.

[00:08:14] Four Pillars of Emotional Intelligence: Daniel breaks down the core pillars of emotional intelligence—from self-awareness to empathy—revealing how these skills build trust and create high-performing, cohesive teams.

[00:12:43] We Need Emotionally Intelligent Leaders: "Leadership is the art of getting work done well through other people," says Daniel. If a leader does not cultivate a positive environment for their team, they are unlikely to motivate them to perform at their best.

[00:17:21] Fear is Killing Performance: Fear is not an effective way to motivate your team, according to Daniel. He encourages leaders to replace threats with positive reinforcement to help their team perform at their best.

[00:19:30] Optimal State: Ever wondered if you could feel at your best every day? Daniel shares how training our focus can unlock an 'optimal state'—a powerful level just shy of flow—where daily excellence feels natural.

[00:24:10] The Key to Innovation: The key to driving innovation, Daniel explains, lies in emotionally intelligent leaders at every level of the organization who inspire and support their teams.

[00:26:57] How Are You as A Leader? Instead of asking 'Who are you as a leader?' Daniel challenges us to consider 'How are you as a leader?'—a powerful shift that reveals if leaders truly connect with their teams or merely hold a title.

[00:28:36] The Judgemental Culture: In a culture fixated on metrics, mistakes often go unadmitted—but Daniel reveals that actual progress begins when leaders embrace vulnerability and see errors as learning opportunities.

[00:30:31] Advice to Auto Industry Leaders: "Don't assume you know," Daniel says, advising auto leaders listening to the podcast to be open to learning.

Top Quotes:

[00:06:53] Daniel: “In one study where we looked about at almost 4,000 executives and evaluated their leadership style or styles, and then ask the people that work for them confidentially, how do you feel? What kind of emotional climate does this leader create? They wouldn't necessarily say that to the leader face to face, but they happily said it to us. It turned out that the very worst style in terms of the climate it created was command and control. The best was a leader who could articulate a shared meaning or purpose in what we do, who inspires people because when you inspire someone, you get the best out of them. They're not just working for the salary or the promotion, they're working for the cause, for the mission. And people will go way beyond, you know, the job description.”

[00:14:10] Daniel: “People who work for you, your direct reports, won't ever tell you that you're a bad boss. What they'll do is they'll leave, or they won't give their best. They'll do good enough to keep the job, but they won't go all out. So, basically, you're shooting yourself in the foot. Leadership is the art of getting work done well through other people. Think about that. Work done well through other people. Well, you have to motivate them. You have to inspire them. You have to create trust.”

[00:22:15] Daniel: “In our culture, we don't bother training attention. We have a culture and an economy that is built on the constant new. Every season, there's a new fashion. Every year, there's a new model of a car. That is what we depend on to perk up the brain and make us pay attention. It turns out, though, that we're missing a huge opportunity, I think, for our kids and ourselves, which is to sharpen our ability to attend to what's going on in the moment. That is a skill that can be trained and trained and trained. And the more the better you get at it, the more likely you are to be in an optimal state, no matter what it is you're doing.”

[00:25:34] Daniel: “If you want innovation everywhere, I would encourage you to have emotional intelligence everywhere and to help leaders develop it. And this is the good news, by the way: emotional intelligence can be developed or improved at any point in life. It's not like, oh, I had that kind of childhood, or my genes are such and such; I'll never have it. It's really a question of what I need to work on or improve. What habit is basically shooting me in the foot, and what could replace it?”

[00:30:40] Daniel: “Be more open, listen, ask questions before saying what you think. Gather information. Don't assume you know.”