How Does Emotional Intelligence Drive Business Success?

Emotional intelligence fuels success 

Emotional intelligence drives business success by empowering leaders to forge strong employee, customer, and supplier relationships. Today, it has transcended its traditional status as being based on soft skills and is seen as a core leadership capability that drives trust, engagement, and long-term success. According to Dr. Francis Wright, Associate Director at PwC: 

“Emotional intelligence contributes to business success as measured through growth, sustainability, customer satisfaction, and net profit. In recognising emotional intelligence as a catalyst for positive business outcomes, it becomes imperative for business leaders to cultivate these skills to foster a thriving environment.” 

Here are 3 areas of business in which emotional intelligence can drive business success: 

1. Emotional intelligence in the boardroom 

Emotional intelligence is increasingly recognised as being crucial in the boardroom. When directors understand their own emotions, they can “read the room,” and actively listen during discussions, it supports sound strategic planning and decision-making. Boards and companies benefit in several ways when their directors have high emotional intelligence.  

Here are 5 Benefits of emotional intelligence in the boardroom 

• Improved decision-making:
  Directors with high emotional intelligence navigate conflicts better. They are better equipped to manage stress and remain calm under pressure. This enables them to make more balanced, rational, and effective decisions, even in crises and other high-stress situations, which cultivates a positive corporate culture, strengthens relationships, and ultimately drives sustainable business success. 
• Better communication.
  Clear and effective communication is essential both inside and outside of the boardroom. Directors with strong emotional intelligence express themselves with clarity and empathy. As active listeners, they engage thoughtfully, without speaking impulsively or dismissing others’ perspectives. This fosters open dialogue, mutual respect, and the collaboration necessary for successful decision-making. Board members who prioritise expressing individual opinions overactive listening will always find it difficult to reach consensus. 
• Conflict resolution. 
  Conflicts occur in every boardroom. However, directors with high emotional intelligence handle them more effectively because they regulate their emotions, understand diverse perspectives, and encourage productive discussions. This not only preserves a positive boardroom atmosphere but also creates a foundation for constructive future debate. Healthy disagreements promote creative thinking, give rise to innovation, and uncover potential blind spots. This is far more valuable to the business than a boardroom where questions are never raised. 
• Stronger relationships.
  Good relationships among board directors improve a board’s cohesion and shape its culture. Directors with higher EI are better at establishing rapport and building trust. This makes it easier for the group to collaborate and function as a team. People are more willing to listen and work together to find a solution when they already have strong foundations.  
• Adaptability and resilience.
  In today’s fast-changing business landscape, boards must stay agile and adapt to unexpected challenges. Emotional intelligence fosters resilience and reduces resistance to change. Thus, directors with high EI navigate uncertainty with calm and clear thinking, inspiring confidence through their positive outlook. This enables the company and its employees to remain effective, innovative, and future-focused. 

2. Emotional intelligence in team leaders 

Managers with high emotional intelligence excel at leading people because they understand emotions -both their own and those of their team members. This awareness helps them build trust, nurture team collaboration, and create a positive work environment. 

Here are 5 Benefits of emotional intelligence in team leaders 

• Stronger communication and active listening
  Emotionally intelligent managers communicate clearly and actively listen to their team members’ input and concerns. In this way, they ensure their team members feel heard and valued, which helps to improve team dynamics and reduce conflict. 
• Better conflict resolution
  Disagreements are inevitable in the workplace, but managers with high EI handle conflicts with empathy and fairness. They are better equipped de-escalate tensions, encourage open and honest discussion while maintaining respect, and find solutions that benefit all concerned.  
• Higher employee engagement and motivation
  By better understanding team members’ emotions and needs, emotionally intelligent leaders can provide tailored support, meaningful feedback, and encouragement. This builds motivation and job satisfaction for individuals, and a sense of purpose within the team.  
• Greater adaptability to change
  In times of uncertainty, emotionally intelligent managers remain composed and positive. Their ability to manage their own stress and reassure team members helps the team to work together to navigate change with confidence. 
• Stronger team relationships
  Trust and psychological safety are key to high-performing teams. Managers with high EI create inclusive environments where employees feel comfortable sharing ideas and taking risks. This leads to greater collaboration and increased creativity and innovation.   

Read our blog, What does it mean to be a manager today?

3. Emotionally intelligent teams 

While having emotionally intelligent individuals in a team is beneficial, it does not automatically mean the team as a whole will function with emotional intelligence. Effective teamwork requires more than just individual EI—it requires collective emotional awareness, strong interpersonal dynamics, and a shared commitment to collaboration. 

Here are 5 benefits of a team that is emotionally intelligent: 

•  Stronger collaboration and teamwork
  Teams with high EI communicate openly, respect different perspectives, and so work together well as a unit. This supports strong relationships, reduces conflicts, and increases productivity, ensuring smoother operations and better outcomes.  
• Improved conflict resolution
  Emotionally intelligent teams handle conflict constructively, ensuring disagreements lead to positive outcomes rather than workplace tension. Their ability to manage emotions, communicate effectively, and display mutual respect allows them to navigate conflicts smoothly. 
• Increased adaptability to change
  Business landscapes change and companies constantly evolve. Teams with high EI are more adaptable to change. They manage stress effectively, remain positive in uncertain situations, and support one another through transitions, helping the company stay competitive. 
• Higher employee engagement and morale
  Emotionally intelligent teams foster an inclusive and supportive work culture by encouraging open communication and valuing diverse perspectives. This enhances teamwork and collaboration and boosts overall employee engagement and well-being. 
• Better decision-making and innovation
  Emotionally intelligent teams excel in decision-making and innovation because they have built trust, leading to greater collaboration and creative problem-solving capabilities.  

Read our blog, How to strengthen team bonds.

In conclusion 

In the fast-paced world of business, emotional intelligence is more than just a business cohesion strategy, it is one of the most significant factors behind the sustainable growth of companies. By continually working to sustain self-awareness, self-regulation, empathy, and social skills directors can establish a foundation for business growth. For team leaders, emotional intelligence helps managers lead their people with empathy, resilience, and authenticity—all key traits of effective leadership. Within high EI teams, open discussion, and creative thinking drive innovation, helping businesses stay ahead in the market. 

Over to you for sharing your comments and experiences.