Tag Archives: intangible

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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

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The Price Is Right

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Pricing is an art and a science and pricing intangible services is especially challenging.  Setting the right price for a product or service is a critical step in building a profitable business.  Quite simply,  you must charge enough money to not only cover your production or procurement costs,  but also reflect the value of the product or service provided and the value of your brand,  i.e.,  what clients will pay for the confidence derived from doing business with you.

But pricing a service is tricky and unless you are for some reason privy to what others may charge for similar services,  you are in the dark.  You probably do not know what competitors are charging,  so benchmarking is impossible.  The price that clients will pay you hinges on what they feel the job is worth and what they feel that you are worth.  Your mission is to avoid being perceived as a commodity,  vulnerable to the cynical bargaining down of your price points.  There are guidelines to follow when creating a pricing strategy.

Step One is understanding how clients perceive the value of your services and of your brand (reputation).  A “cost-plus” pricing strategy,  which is tied to what it costs to produce or purchase at wholesale the product or service to be sold is inadvisable,  according to pricing experts.  If customers are willing to pay $100.00 for a product or service that costs $10.00 to provide,  then charge what the market allows.

Step Two is understanding how the client wants to purchase your service.  Much will depend upon the type of services you provide and whether this is a one-off project,  or an ongoing retainer arrangement.  Whenever possible,  avoid charging an hourly rate and instead  “bundle” products and services into a project fee.  Do not give clients who are so inclined the ammunition to nickel and dime you by scrutinizing duties that you invoice and arguing over how long it should have taken to perform them.

Step Three is establishing different levels of service available: basic,  upgraded and premium.  Jean-Manuel Izaret,  a partner at the management consulting firm Boston Consulting Group,  insists that it is always best to give clients a choice,  whenever possible.

Step Four is targeting clients who value your brand and your services and are willing to pay a premium to do business with you.  The size of your available market will shrink, but each client will be worth more money to you.  It will also be easier to make the sale,  because this group of prospective clients values you and what you can do.  Access this group through networking and self-promotional activities: those who have heard your webinar,  read your blog or newsletter,   have received a recommendation from a trusted referral source,  have read a favorable article about you in the press—here is where your PR and relationship building activities can pay off.  This group of clients will have faith in your expertise and will agree to pay premium (but fair) prices at contract signing time.

Step Five is knowing your competitors.  It may be impossible to learn what they charge,   but you can learn the value of their brand.  Are you swimming with powerful fish,  or those about your size and strength?  That could impact your pricing strategy,  but only if clients are familiar with what the big fish charges.  It is unwise to price your services low in the presence of a competitor with a strong and well-regarded reputation.

Step Six is to benchmark against competitors in different parts of the country by checking the MOBIS contract prices offered to the federal government.  This is a useful way to get a credible ballpark number for setting prices.  Further,  you will see what types of services are being offered and how they are bundled.  http://www.gsa.gov/portal/content/245439

Thanks for reading,

Kim