The Idea in Brief

What most influences your company’s bottom-line performance? The answer will surprise you—and make perfect sense: It’s a leader’s own mood.

Executives’ emotional intelligence—their self-awareness, empathy, rapport with others—has clear links to their own performance. But new research shows that a leader’s emotional style also drives everyone else’s moods and behaviors—through a neurological process called mood contagion. It’s akin to “Smile and the whole world smiles with you.”

Emotional intelligence travels through an organization like electricity over telephone wires. Depressed, ruthless bosses create toxic organizations filled with negative underachievers. But if you’re an upbeat, inspirational leader, you cultivate positive employees who embrace and surmount even the toughest challenges.

Emotional leadership isn’t just putting on a game face every day. It means understanding your impact on others—then adjusting your style accordingly. A difficult process of self-discovery—but essential before you can tackle your leadership responsibilities.

The Idea in Practice

Strengthening Your Emotional Leadership

Since few people have the guts to tell you the truth about your emotional impact, you must discover it on your own. The following process can help. It’s based on brain science, as well as years of field research with executives. Use these steps to rewire your brain for greater emotional intelligence.

1. Who do you want to be? Imagine yourself as a highly effective leader. What do you see? Example: 

Sofia, a senior manager, often micromanaged others to ensure work was done “right.” So she imagined herself in the future as an effective leader of her own company, enjoying trusting relationships with coworkers. She saw herself as relaxed, happy, and empowering. The exercise revealed gaps in her current emotional style.

2. Who are you now? To see your leadership style as others do, gather 360-degree feedback, especially from peers and subordinates. Identify your weaknesses and strengths.

3. How do you get from here to there? Devise a plan for closing the gap between who you are and who you want to be. Example: 

Juan, a marketing executive, was intimidating, impossible to please—a grouch. Charged with growing his company, he needed to be encouraging, optimistic—a coach with a vision. Setting out to understand others, he coached soccer, volunteered at a crisis center, and got to know subordinates by meeting outside of work. These new situations stimulated him to break old habits and try new responses.

4. How do you make change stick? Repeatedly rehearse new behaviors—physically and mentally—until they’re automatic. Example: 

Tom, an executive, wanted to learn how to coach rather than castigate struggling employees. Using his commuting time to visualize a difficult meeting with one employee, he envisioned asking questions and listening, and mentally rehearsed how he’d handle feeling impatient. This exercise prepared him to adopt new behaviors at the actual meeting.

5. Who can help you? Don’t try to build your emotional skills alone—identify others who can help you navigate this difficult process. Managers at Unilever formed learning groups that helped them strengthen their leadership abilities by exchanging frank feedback and developing strong mutual trust.

When the theory of emotional intelligence at work began to receive widespread attention, we frequently heard executives say—in the same breath, mind you—“That’s incredible,” and, “Well, I’ve known that all along.” They were responding to our research that showed an incontrovertible link between an executive’s emotional maturity, exemplified by such capabilities as self-awareness and empathy, and his or her financial performance. Simply put, the research showed that “good guys”—that is, emotionally intelligent men and women—finish first.

A version of this article appeared in the December 2001 issue of Harvard Business Review.