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The Power of Chief Emotions Officer

You're probably well-versed in the concept of accrued interest. Failing to make timely interest payment on a loan, it accrues and compounds into a staggering financial burden. But have you considered the impact of unaddressed emotions within your organization? Just like accrued interest, negative emotions can accumulate, escalate and contagiously affect the company’s performance.

Just as wise executives who stay on top of their financing plan to avoid financial crisis, emotionally intelligent leaders manage and address emotions within their organizations to avoid a buildup of negative emotions, neglecting them can result in a toxic workplace, low employee morale, and decreased productivity. This is where Chief Emotions Officer play a critical role in fostering a positive and productive work environment that drives growth and success.

Market data and research have demonstrated that high emotional intelligence (EQ) is critical for successful leadership, and that EQ accounts for two-thirds of a leader's effectiveness, compared to just one-third from either IQ or transferable experience. Entrepreneur coach Chip Conley shared his views that CEOs are the crossing guards at the intersection of psychology and business, and one of the most important hires that many companies should have, is an exceptional Head of HR to ensure your organization's emotional well-being is of top priority.

One notable example of a CEO who successfully transformed a company's culture through emotional intelligence is Satya Nadella of Microsoft. When Nadella took over as CEO in 2014, he inherited a company with a reputation for being competitive, cut-throat, and inwardly focused.

Nadella recognized the need to change the company's culture to make it more collaborative, empathetic, and focused on innovation. Emphasizing the importance of empathy and emotional intelligence in his leadership style, Microsoft experienced a major cultural transformation that has led to increased innovation, collaboration, and profitability. Under his leadership, Microsoft's market value has grown from USD302 billion to over USD2 trillion, and the company has been recognized as one of the best places to work in the tech industry. Nadella's success at Microsoft is a testament to the power of emotional intelligence and the importance of prioritizing employee well-being and diversity in creating a positive and productive workplace culture.