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Why Leaders Use EQ to Harness the Disruptive Power of AI

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The arrival of Artificial Intelligence (AI) powered software tools has dramatically changed how many businesses operate, revolutionizing the way we work, communicate, make decisions and solve problems. AI excels at analyzing and interpreting often complex information and recommending actions that can successfully guide business owners and leaders as they make decisions that will shape their organization’s future. As the integration of AI expands, however, it has become apparent that human oversight of the technology’s implementation is sometimes necessary, in particular when privacy and maintaining ethical business practices is a potential concern.

Will EQ make AI feel trustworthy?

AI delivers many tangible gifts via digital computers and robots, and the software systems they support, but regarding intangible qualities, not so much. One can only expect technology to be soulless, but it is possible to program your chatbot to display “empathy” to a frustrated customer who has a problem to solve, but your AI tools have no genuine understanding of emotions. AI-powered technology tools are unable to navigate complex human behaviors, such as developing trust, understanding the value of integrity, or building relationships. While AI has the capability to optimize the efficiency and performance of your business systems, it cannot simulate cognitive processes such as judgment, adaptability, or principled decision-making.

An awareness of those limitations points to a solid case for the need of human oversight to monitor AI implementation in your organization. It falls on business owners and leaders to put guardrails in place to direct and enhance AI outcomes. Incorporating Emotional Intelligence (EQ) behavioral principles can provide useful assistance to business owners and leaders as they attempt to harness AI-powered technology and produce benefits that are effective and also ethical.

What is EQ and why does AI need it?

As AI becomes more widely adopted, establishing ethical business practices, such as safeguarding the privacy of those with whom one does business, and decision-making that prioritizes not only the interests of business leaders but is also humane, is becoming standard operating procedure. Achieving mission-critical goals without compromising the trust of customers, employees and community is becoming recognized as a brand enhancement.

Behaviors and actions attributed to Emotional Intelligence, often called EQ (Emotional Quotient), refer to the ability to recognize, understand and manage emotions in oneself and others. The introduction of EQ-based perspectives is becoming more prominent as business owners and leaders become more accepting of AI technology and increasingly aware that AI cannot replicate cognitive processes, like empathy, creative problem-solving and effective communication.

AI and the value of EQ soft skills

AI has only a limited ability to mirror and respond in kind to human empathy. Yes, it can process natural language and recognize patterns that signal it is the appropriate time to respond with an empathetic reply such as, “Your problem sounds challenging and I’m here to assist you,” as the tool aims to resolve a customer service issue. But AI technology can only respond with empathy according to predefined algorithms; and those replies and conversations often lack emotional depth and nuance.

As AI becomes part of everyday work, soft skills such as communication, adaptability and relationship-building remind business leaders of their place at the table. EQ is recognized as a core leadership skill and it maintains that status in the AI era. Leaders who are competent in EQ are are better able to connect with customers or colleagues on a deeper level and understand their motivations or misgivings. The possession of soft skills can nurture trust and create a resilient, adaptive and ultimately productive work environment.

The ability to blend other standard hallmarks of leadership, such as good judgment, adaptability and resourcefulness—and are foundational to the agile business practices that are crucial to achieving success in rapidly shifting economic and political currents—while simultaneously navigating through an AI-powered workplace, presents an unambiguous case for the introduction of EQ associated business practices. AI can provide data-driven insights and predictions, but it takes a human leader to apply that information in the context of broader organizational goals, ethical considerations, and long-term strategies. Decisions often require that leaders use their judgment to weigh risks, navigate uncertainties, assess team dynamics and then make informed decisions that reflect the values of their organization.

Ethical leadership is a critical component in the AI era. As AI takes on more responsibility for decision-making processes, leaders must ensure that its use aligns with ethical standards and is not compromised by biases. Leaders must remain vigilant about how AI technology is applied, to ensure that it serves the best interests of people, and not just the bottom line. The most successful leaders will not be those who resist change but rather those eager to learn how AI can enhance business operations and the workplace, all the while providing new opportunities for collaboration and innovation. As organizations invest more heavily in AI tools, those who stand out will be able to combine AI capabilities with behaviors associated with EQ, such as empathy, communication, judgment, adaptability and agility and they will carry the day.

Thanks for reading,

Kim

Image: © MorphCast

Marketing , , , , , , , , , , , Leave a comment

Don’t Get Too Personal

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Personalized marketing defines the future of marketing. Personalized marketing has not delivered on its promise. Got it.

Personalized marketing was supposed to revolutionize how you communicate with prospects, build and strengthen relationships with customers and promote your services and products to target market segments. Its purpose is to tailor your marketing messages, customer experiences and other communication with individual customers based on their unique attributes, purchasing history and preferences. Higher customer retention rates, increased sales revenue, increased customer lifetime value and decreased customer churn are among the most valuable benefits associated with personalized marketing.

Marketers were highly enthusiastic. But then came trouble in paradise, as consumers signaled concern about the privacy of their personal information and browsing behavior, which caused some turbulence in the digital sector. A reset occurred, as certain leading internet browsers instituted a ban, or allowed users to restrict, the use of third-party cookies, the mechanism that enables tracking of online behavior. As a result, marketing leaders (and that includes Freelancers and small business owners) have had to rethink their marketing personalization strategies, just when they were wrapping their heads around Customer Relations Management software and how Artificial Intelligence capabilities refined and optimized the effectiveness of personalized marketing strategies. Sigh.

So, it was necessary for brands to go back to square one marketing and shore up collection of first-party data that customers were willing to share. That information is more valuable than ever now—-and isn’t it better that you own and control your customer data, that customers and prospects know what you know about them; and they also know that you won’t sell their personal data? There’s a lot of upside that results from expanding your collection of first-party customer info—the process helps you strengthen relationships, because you’ll have more opportunities to better understand customers and you’ll be better prepared to improve their experiences with your brand.  You can apply personalization on any digital channel if you have access to customer data — often unified through a customer data platform put into place by your CRM service, which will use AI and algorithms to tailor customer experiences based on his/her data and behavior.

Realize that your customers expect and appreciate a personalized experience from the brands they regularly engage or do business with regularly. A McKinsey research study found that 76% of customers are more likely to purchase from brands that personalize. Customers want to know that the brand understands who they are and their needs and does not bombard them with unwanted sales offers.

The benefits of successful marketing personalization

  • More consistent and relevant customer experiences. Personalizing customers’ experiences shows that you understand their preferences and interests. This makes them more likely to engage and remain loyal to your brand, since they know you won’t pummel them with unwanted info.
  • Increased sales conversion rates. The more relevant your offers, the more likely that prospects and customers will value and accept the call-to-action you’re prompting them to, whether that’s purchasing a service or product, signing up for a subscription, or scheduling a consultation. Personalization enables you to entice customers with offers based on their past purchases, interests and real-time behaviors, since you’ll know what matters to them.
  • Higher customer loyalty, retention and lifetime value (LTV). Personalization sets you up to deliver relevant marketing messages and content, as well as the context in which to make recommendations for services or products, add-ons or upgrades, that are likely to resonate. When your organization demonstrates to customers that you are paying attention to their priorities, customers are more likely to give you repeat business and extend the customer lifecycle, which is vital for retaining customers in the long term.
  • Maximized marketing efforts and budget. Personalization ensures you’re always targeting customers with highly relevant offers. This means you’re not wasting your (and your customers’) time and resources. Coupled with the increase in conversion rates and revenue, this makes personalization an incredibly powerful tool for maximizing marketing spend and return on investment (ROI). It can even apply to your broader branding efforts, such as choosing the best name for your YouTube channel in order to engage a specific niche audience and earn more returns from your multimedia content.

 Types of personalization

Marketing personalization can be expressed in different ways, depending on what you want to achieve. For example, some personalization is one-to-one, meaning it’s directly related to the customer’s specific information — a technique increasingly powered by AI personalization. Think email marketing, from blogs or newsletter to special offers or events. Other times, personalization is applied using a targeted approach through customer segmentation, where you choose specific characteristics or customer attributes for a customer group based on their buying history or other interaction with your brand puts them into the segment receive a certain personalized experience.

Personalization can be as simple as having a person’s name in an email rather than an all-purpose general greeting, or as detailed as including the details of a customer’s recent purchase or web browsing in that email. It could also include showing particular product promotions on a website based on a person’s past purchases, or sending special promotions via SMS or a mobile application. Customers expect personalization on every channel, a continuity across website, mobile, SMS (text) and email communications.

Other examples of personalization include:

  • Product recommendations based on past purchases or online browsing
  • Product promotion info based on the website pages visited
  • Email offers to a segment of customers who own a particular product or receive a certain service
  • Communicating with a customer post-purchase to ensure they are happy and have no difficulty using the product or service and accessing its benefits

Boundaries matter

While there is no doubt that customers and prospects expect and appreciate personalization, they want to ensure their privacy. When, where and how much your brand personalizes the customer experience deserves consideration. It is imperative that you avoid making those who’d like to engage with your brand feel that you’re getting too personal, that they’re being closely watched. The feeling that business owners and marketers want to communicate is “I matter to this brand.” Build your personalization strategies around that thought and avoid activities that may feel like a violation.

When inviting those who engage with your brand to share certain info, you can take an important step in relationship-building by demonstrating that transparency is a policy you live by. Customers worry about brands collecting too much data, using information in unexpected ways, or creating experiences that feel too close for comfort. How data is used, confirming that it will not be shared with third parties and demonstrating that cybersecurity measures have been installed to discourage data security breaches will go a long way toward earning the trust of your customers and prospects. Clearly stated privacy policies, explicit consent mechanisms, giving customers control over their data and only personalizing in ways that genuinely add value to the customer experience you provide are must-dos.

Tools for effective marketing personalization

To effectively personalize your marketing efforts, implementing data analytics tools is necessary. Analytics tools track customer behavior that reveals website interactions and email responses, for example, so you can accurately tailor your strategies in response. Utilizing a marketing Customer Relations Management platform will optimize those capabilities by centralizing customer data to facilitate targeted, personalized communication. N.B.–maintain the quality of your customer data by taking steps to ensure that it is updated and accurate.

CRM analytics serve as the foundation for both customer journey mapping and sales forecasting by providing the behavioral data needed to understand how prospects move through your sales funnel. Every touchpoint, interaction and transaction recorded in your CRM becomes a valuable data point that reveals patterns in customer behavior and purchasing decisions.

Customer journey mapping relies heavily on CRM data to identify which channels, types of content and engagement lead to conversions. This info helps you understand which activities are most likely to indicate a purchase, or make the prospect more likely to make a purchase. You’ll also learn where in the buyer’s journey prospects are prone to abandon—or accelerate— their buying decisions.

Finally, your marketing CRM platform will greatly improve sales forecasting and ensure the data will be accurate when you analyze historical CRM data to predict future performance based on current sales funnel activity and even seasonal trends. CRM reporting tools enable you to track every interaction across the customer lifecycle, providing the comprehensive data needed to create reliable revenue projections and identify which touchpoints contribute most to creating sales.

Thanks for reading,

Kim

Image: © The Everett Collection. Jean Porter and Jimmy Lydon in the film Sweet Genevieve (1947)

Professional Development , , Leave a comment

Emotional Intelligence: The Foundation of Leadership Ability

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Emotional Intelligence is the capacity to recognize and respect not only how you feel, but also how those with whom you interact feel. Emotional Intelligence also helps you to manage your emotions effectively, both in your inner life and in your relationships. Alternately known as EQ and often portrayed as a qualitative, subjective yin (female) counterpart to the data-driven, measurable and objective yang (masculine) IQ, EI entails more than displaying empathy and being kind, or “sensitive.”

Ongoing research has presented credible evidence that supports EI as a different, but nevertheless valid and beneficial, form of human intelligence. Psychologists, organizational development specialists and leadership development coaches recognize EI as a core life skill that promotes one’s ability to deliver excellent performances, particularly in the domain of leadership. There is no absolutist blueprint, or model, that codifies EI, but there are variations on a standard theme that have been developed primarily by psychologists and organizational behavior specialists. I recently discovered the work of Emotional Intelligence researchers Daniel Goleman and Richard Boyatzis.

Goleman has written extensively on the topic of EI. He is co-director of the Consortium for Research on Emotional Intelligence in Organizations at Rutgers University in Newark, NJ and he is the author of Building Blocks of Emotional Intelligence (2017) a 12-primer set on each of the EI competencies that he co-discovered. He also offers training on those competencies through an online learning platform. Boyatzis is a professor in the departments of Organizational Behavior, Psychology and Cognitive Science at the Weatherhead School of Management at Case Western Reserve University in Cleveland, OH and he’s been recognized as a Distinguished University Professor there. He is a co-founder of the Coaching Research Lab and co-author of Helping People Change (2019). According to Goleman and Boyatzis those who aspire to become exceptional leaders will need to develop a balance of strengths across the suite of EI competencies. When that is achieved, outstanding business results will follow.

Goleman and Boyatzis see as EI consisting of four domains—Self-Awareness, Self-Management, Social Awareness and Relationship Management—and connected to each domain are 12 EI competencies. When you’ve mastered the domains and the competencies associated with each category, you will possess capabilities that allow you to be an adept at team player or a practitioner of inspirational leadership, as the situation requires. Below is a capsule view of the domains and the related competencies.

Self-Awareness

This domain refers to the ability to read and understand your emotions as well as recognize their impact on others. In short, self-awareness is a basic understanding of how we feel and why we feel that way. The more we are aware of our feelings, the easier it becomes to manage our feelings and control how we might respond to others.

Those who have nurtured their EI capabilities achieve objectivity through the self-awareness that this form of intelligence develops. Leaders who have developed a high level of EI promote productive and motivated workplaces that give all workers equal opportunities to shine.

  • Emotional self-awareness: I know what I am doing and why
  • Accurate self-assessment: I am cognizant of my beliefs and mental models
  • Self-confidence: I am aware of my abilities, including strengths and weaknesses. I trust my judgment and have a sense of control in my life. I set realistic expectations and goals, communicate assertively and can handle criticism.

Self-management

Also known as self-regulation, this domain can be defined as the ability to manage one’s actions, thoughts and feelings in flexible way, in order to produce the desired results. Optimal self-management contributes to a sense of well-being, a sense of self-efficacy or confidence and a sense of connection to others. You are able to control impulsive feelings and behaviors, express your emotions in healthy ways, take initiative, follow through on commitments and adapt to changing circumstances.

  • Emotional Self-Control: You are able to keep potentially disruptive emotions and impulses in check and maintain your effectiveness under stressful or hostile conditions.
  • Achievement Orientation: You intend to meet or exceed a standard of excellence. You seek ways to do things better and improve outcome. You reasonably challenging goals and take calculated risks.
  • Positive Outlook: You are able to see the positive qualities and characteristics in people, situations, and events. You persist in pursuing goals, despite obstacles and setbacks.
  • Adaptability: You have the flexibility to handle change and juggle multiple demands, as you adapt your ideas or approaches to new and unexpected circumstances.

Social Awareness

Social Awareness is the ability to accurately notice the emotions of others and “read” situations appropriately. It is about sensing what other people are thinking and feeling, to be able to take their perspective using your capacity for empathy. Those adept in the qualities of this domain are able to read another person’s face, voice, body language and other verbal or nonverbal cues that communicate emotion and help direct us as to how we should speak and otherwise interact with that individual.

  • Empathy: The ability to sense others’ feelings and perspectives, take an active interest in their concerns and recognize cues about what others may feel and think. Goleman further describes empathy as the cognitive and emotional processes that bind people together in various kinds of relationships that permit sharing experiences as well as understanding of others.
  • Organizational Awareness: The ability to read a group’s emotional currents and power relationships, identifying influencers, networks, and organizational dynamics.

Relationship Management

This domain pulls together and integrates the other three domains and creates the final product, relationship management. Relationship management can be used to influence those around us and guide or encourage them to make good decisions. You can sense other’s reactions to situations and then fine-tune a response to move the interaction in a positive direction.

Relationship management proficiency also addresses teamwork and other collaborations.
You’ve learned to use the skills acquired in the other domains to steer the group toward
the goal. Furthermore, proficiency in relationship management promotes the ability to effectively manage conflict. Those who become particularly adept in this area can see that conflict is forming and take steps to move others away from this and toward more positive interactions. Effective Listening skills and empathy are essential to deal with these difficult conversations.

  • Influence: The ability to have a positive impact on others, to persuade and convince others in order to gain their support.
  • Coach and Mentor: The ability to foster the long-term learning or development of others by giving feedback, guidance, and support.
  • Conflict Management: The ability to help others through emotional or tense situations, tactfully bringing disagreements into the open and finding solutions all can endorse.
  • Inspirational Leadership: The ability to inspire and guide individuals and groups towards a meaningful vision of excellence, and to bring out the best in others.
  • Teamwork: The ability to work with others towards a shared goal; participating actively, sharing responsibility and rewards, and contributing to the capability of the team.

You can evaluate and improve your EI skills. Goleman and Boyatzkis recommend a 360-degree assessment, to receive systematic, objective observations of your behavior by people who work with you. Incidentally, EI has been found to not correlate well with IQ or personality traits, but the two values are the best predictors of a leader’s effectiveness, actual business performance, engagement, professional and personal satisfaction. A 360-degree assessment tool that uses ratings generated by you and those who know you well can reveal your EI current strengths and suggest where your EI needs improvement. To best improve your weak spots, find a leadership development expert to coach you.

Thanks for reading,

Kim

Image: Philadelphia Flyers coach John Tortorella