Leadership with emotional intelligence (EQ) is the new competitive advantage. The ideal leader to meet and overcome current and future challenges is not only mentally intelligent and technically skilled, but importantly, emotionally intelligent (EQ).

The global financial crisis of 2008 shook major corporates and several industries to the core. Questions around the type of leadership that led to many companies finding themselves in extremely difficult positions have arisen, as well as questions around what type of leadership is needed to put such companies back on track.

According to Brian Khumalo, Chairperson of Leaders Unlimited – a leading global and integrated leadership solutions provider, the ideal leader to meet and overcome current and future challenges is not only mentally intelligent and technically skilled so as to improve production and profitability, but importantly, emotionally intelligent (EQ).

“It has become increasingly clear that emotional intelligence is an essential attribute of a successful leader in today’s economy, giving not only the individual a competitive edge, but ultimately the company that he or she works for. Leaders with high EQ offer a high degree of commitment, integrity and communicative ability. They are adept at initiating change and accepting and reacting to change, and they encourage and empower their employees and colleagues,” said Khumalo.

The notion of leading with high EQ is not a new concept, having been developed in the very early 1990’s, however, as the traditional view of leadership crumbles under the enormous pressures faced by leaders in the 21st century it is raising its head as what was possibly one of the missing ingredients in the companies and regulatory departments that were at the epicenter of the global crisis.

Leaders with high EQ know that working relationships with all stakeholders cannot and should not be devoid of emotion. Social awareness is a key characteristic of an emotionally intelligent leader, allowing them to address the expectations and requirements of what constitutes ‘employees of the 21st century,’ who are more independent than previous generations and who are more empowered by their individual needs. In a move beyond a consultative and democratic approach to leadership to include the dimension of emotion, these leaders build sustainable relationships with colleagues, employees and customers, and these relationships would have been more likely to recognize where sustainable competitive advantage ended, and where greed bordering on fraud started” said Khumalo.

Khumalo believes that the workforce of the 21st century – increasingly characterised by the Y Generation employee, further strengthens the position of emotionally intelligent leaders as the leaders of competitive advantage and sustainable futures.

“The Y Generation demands leadership that recognises their individuality, respects their needs in terms of work-life balance and desire to feel empowered, is flexible in their management approach and operates in a non-hierarchical fashion. These demands can only be met by emotionally intelligent leadership that is not only capable of recognising the importance of such needs, but has the ability to accept and initiate appropriate changes to meet such needs. ” said Khumalo.

Such a proposition would have been hailed as nonsense by the X generation, but as the face of the consumer and the workplace changes, wrought by an increasingly dominant Y generation , so too will the demands on leadership.

Possibly our best defense against the abuse of our financial and commercial system lies not only in increased regulation, (which private enterprise seems to specialize in being able to avoid) but in a new morality born of the demands of a new generation of leaders.