My Extra Credit Oral Persentation of

Working With Emotional Intelligence

By Daniel Goleman

Chapter 10: The Billion Dollar Mistake

Table of Contents

The Billion Dollar Mistake

Remedying the Yuck Factor
Building Emotional Competence and Sales
The Good News
Understanding is Not Enough
The Ultimate Test
A Different Model of Learning
Spray and Pray
The Bottom Line
When the Hard-Nosed Become Soft
Emotional Competencies: Guidelines for Learning
Teaching Skills That Matter
Getting Back to Work

Questions and Answers
Personal Reactions
Other Oral Reports
Suggestions for Future Generations

The Billion Dollar Mistake

Chapter 10 focuses on the importance of emotional competency in the workplace. It is often the case that this attribute is overlooked or ignored. Goleman stresses that emotional compentency is not a luxury, it is a necessity. When companies figure into the amount of losses that they suffer because of the lack of emotional competency, the figures are astounding. Over time, what is believed to be a minor oversight can result in a catastrophic mistake costing many companies billions of dollars.

In a study done at a life insurance company, it was found that two out of three clients refused the plan although it would clearly benefit them. One of the executives was curious as to the nature of the frequency of the rejections and initiated a study to find out why the clients were refusing. He theorized that the root of their problem would be an imperfection in the policy or some other minor problem with the product. Surprisingly, it was found that the policy was fine. It was the process and presentation that upset the clients.

The study found that the advisors made the clients feel "powerless, uninformed, inadequete, and suspicious." Additionally the advisors felt "unqualified, incompetent, untruthful, and selfish" about giving the presentation. All of this negativity built a giant obstacle between the sales process and the bottom line.

Working in customer service, I understand the importance of customer service skills such as emotional intelligence. It is essential to always be aware of the client's mood and always try to maintain a sense of pleasantness. When the client strays away from this mindstate, it becomes difficult to conduct business as usual. As a customer I sometimes refuse to buy a product if the sales representative is rude even if the product is flawless. Although this may be a retalitory reaction, nevertheless, it is a common one that can occur if emotional intelligence is not applied to customer service. I agree with Goleman that failure to be emotionally competent can be disasterous for a business.

Remedying the Yuck Factor

In this section, Goleman introduces the term, "yuck factor." These include all emotional battles people face that are distasteful or painful in the workplace. Specific examples include demoralizing rejections, too much information that is required to be memorized about the product, a pressure for the employee to make the sale because the income of the company depends on them, mandatory and constant awareness of the clients desires, and finding a balance between work and family.

All of these "yuck factors" can be treated with specific remedies that all can be found within the learning of emotional competency. In the case of the life insurance company mentioned in "The Billion Dollar Mistake," after finding the results of the study, the company agreed to create an emotional compentency course for their employees assuming that following the completion of the course, the advisors will now be driven by their own principles and desires instead of pressure. In turn they will project this outward toward the client and be more convincing by eliciting a sense of trust.

I agree with Goleman's strategy to focus on the root of the problem, the advisor's emotional competency. It isn't until the advisors are changed by remedying the "yuck factors" that the customers will begin to feel comfortable with purchasing the policy. If the emotional competency training is implemented correctly, the company turn around could be significant.

Building Emotional Competence and Sales

This section begins with the story of Sharmayne Williams, an American Express financial advisor. She was a self-proclaimed "hot head" and if things failed to go her way, she would become eraged. American express agreed to train her in emotional compentency. After completing the course, she was surprised and had not realized the extent to which her emotions were taking control of her life. She learned to cope with stress by working out and talking with her boss to inform him of her concerns on different matters before they pile up and she explodes in a rage. After the course, in her first year at American Express, her sales topped $1.7 million. The following year, she topped that figure as well, making $2.4 million in sales. Sharmayne was not alone in her success. It was found that people enrolled in the emotional competency course marked an 8% to 20% improvement in productivity in comparison to those who did not take the course. Doug Lennick, the executive vice president at American Express Financial Advisors credits this change to the fact that the employees learn to "deal with emotions without compromising values."

I also agree here. Numbers don't lie. If Sharmayne's sales figures are indicative of what will happen following the emotinal competency course, then it definitely is a good thing. It should be no surprise that many people are not emotionally intelligent. Emotinal competency must be learned as with any other skill. It is definitely in the company's best interest to train the employees.

The Good News

In this section Goleman discusses a technique that is used at Promega Biotechnology Company. Prior to work, employees engage in a mindfulness exercise that involves focusing one's mind and relaxation exercises. Goleman then goes on to include information on the biology of the changes. He states that this mindfulness exercise increases activity in the left fronal lobes of the brain that increase positive feelings and reduce the incidence of amygdala hijacks as discussed in Jeanna Barr's oral presentation. After the exercise, productivity is increased. The worker's claim that this exercise helps them feel more alert and that results in the increased productivity.

The point Goleman is trying to make here is that all emotional competencies can be cultivated with practice. Unlike IQ, EIQ has the ablility to constantly improve throughout life. Although maturity is a factor (it is harder to raise EIQ in people 25 and younger as compared to those 29 and older.) and there is a slight difference in EIQ between genders (males are better at self-regulation and females are better at empathizing and social skills), anyone is equally capable of improving their EIQ. The bottom line is that there is good news and one can always improve with effort.

I don't know quite what to make of what Goleman considers "biological support." This support is based on correlational data and in no way concludes causality. However, I have taken Professor Shapiro's Transpersonal Psychology course and I admit that the mindfulness exercises that we did in that class helped me not only to feel better, but to help me with my school work. I felt more attentive in class and did not procrastinate as much. The results were so positive that even now I try to take the time to practice mindfulness through meditation at least 2-3 times a week.

Understanding is Not Enough

This section is about the story of Henry and Lai. Both graduated from the same school and recieved the same grades and were both employed at the same company, Bell Labs. However, that is where their similarities stopped. Their work styles vastly differed. Henry would sit glued to a computer and attack project after project, finishing each ahead of schedule and with very few mistakes. Lai, on the other hand, would get to know her co-workers and help out others where she could. Six months later, both were evaluated. Although Henry appeared superior in the technical aspect of the job, Lai was seen as a worker who could work as a part of a team and take initiatives. Although Henry was quite adept, many of his co-workers distrusted him when he was a part of a team. The question is how to change Henry. He knows what to do but fails to do it.

In another study it was found that supermarket managers often knew what needed to be done in certain situations, yet for some reason or another, they fail to do it. This is the difference between what Goleman calls declarative knowledge (talking the talk) and procedural knowledge (walking the walk). For cognitive and technical training, declaritive knowledge may be enough. Emotional intelligence training involves behavior modification, and needs procedural knowledge as well.

I also agree here that both types of knowledge are necessary in effective job performance. I see too many people who know what they should do but don't because it takes more time and effort, or they may simply prefer to do things "their way."

The written test for getting one's drivers permit unfortunately only teaches declarative knowledge. One of the questions asks what to do if a pedestrian crosses against the red in front of your car. While the obvious correct answer is to allow them to finish crossing before continuing, you'd be surprised at how many people speed up to scare them or swerve dangerously around them or pound on their horn.

The Ultimate Test

Goleman emphasises the need to reteach and mold ingrained habits of thought, feeling, and behavior. For example, take Henry from "Understanding is Not Enough." Perhaps he chooses to be isolated because of shyness. Over time, this choice of isolating himself may have become a habit. The more he does it, the more the more that he reinforces that habit and the more likely that he will do it again. He must break himself of the habit to end the cycle. He must unlearn what he has learned.

Again Goleman uses his knowledge of the biology of the brain in an effort to support his argument. He claims that an action of habit has dominant pathways for nerve impulses in the brain. If this path becomes too strong, soon it will seem like it is the only available choice. Therefore, the brain needs to be "rewired" to stop the bad habit. A new, better habit must be programmed in to replace the older one. The ultimate test comes when the new habit is performed spontaneously.

Although I agree with the nature of habits and habit forming, I am somewhat apprehensive about accepting what Goleman credits as "biological evidence." He assumes causation from correlational data which make this biological "evidence" weak at best.

However, he does bring up an important point about training yourself to lose older bad habits and acquire new ones. When I first began to work I possessed an immature arrogance that made it difficult for me to follow the old saying, "the customer is always right." However, after years of training, I can now follow this belief spontaneously, thereby satisfying the ultimate test.

Here is one ultimate test for drivers: If someone cuts you off, what is your initial reaction? Although I can now calm myself fairly quickly, my initial reaction is still anger. But I'm still working on this area so someday I may pass this ultimate test for driving.

A Different Model of Learning

Here Goleman states that technical training is easier tan emotional training because the educational system has trained us to learn in this way by focusing on cognitive skills. Again, Goleman illustrates the futility of teaching emotional competency in the same way as teaching cognitive skills through what he believes is biological support. He states that two different areas of the brain are activated depending on whether the person is using intellectual or emotional skills. He reasons that because of this, emotional training requires a different training method that stands apart from the traditional classroom method. Companies that employ this method are essentially conducting billion dollar mistakes because they are not teaching the skills that the employee needs.

I disagree with Goleman on this point. Emotional intelligence is, in fact, a cognitive skill. He oversimplifies emotional competency as a habitual process when good habits are merely the by-product of emotional competency. Emotional competency is a cognitive skill because it involves being aware of your emotional mind state and actively controlling it. We are not slaves to our habits, much less to a specific neurological path in the brain. Good habits simply help with the process of emotional competency; they don't run it. Emotional competency must be taught in the classroom. Although this teaching process is far from perfected, teaching in any other manner is not only impractical, but ludicrous in spite of Goleman's biological "evidence." (again correlational, not causal)

Spray and Pray

Although studies have found many companies do implement an emotional competency class, only 13% actually evaluated the class using on the job performance as their dependant variable. One of the companies that did evaluate their training course was surprised that only 10% of those in training actually improved.

Goleman considers this company to have used the "spray and pray" method of teaching emotional intelligence. Here the company "sprays," exposing everyone to a mediocre training program and then the executives "pray" that some will retain the lessons that were taught or merely hope that something was taught at all.

I was amazed that so many companies would spend so much money so blindly. If I were spending millions and millions of dollars on training emotional competency, I would make sure that everyone comes out of that program emotionally intelligent.

Although it would be a good idea to analyze the teaching technique that is used in Hawaii's driver education program, I doubt that it will ever be done. The process of analyzing would be difficult due to the nature of the incidence of accidents that reflect upon poor driving competency (they are infrequent and random events).

The Bottom Line

The results of the effectiveness of the emotional training course found that for many companies, they are a waste of time and money. In fact, for some companies, managers were less effective after the training course than before it. Although the cost of conducting this evaluation was steep ($500,000), it amounted to only .02% of the training budget which was $240 million. Since so much money went into training, they revamped the program to ensure that in the future the training would teach what it is supposed to teach.

The amount of money discussed in this section boggles my mind. Although I agree that $500,000 to repair a potentially $240 million mistake is a bargain. I personally would never invest that much into emotional competency. Of course, I speak from a perspective of someone who makes about $10,000 anually...

When the Hard-Nosed Become Soft

This section ponders why some "hard-nosed" companies become "soft" when it comes to evaluating a emotional competency training course. For one company, the competency course was no more than a pet project of the vice president and was merely to see if the employees liked the course. For others, the results are often too disturbing: There is a short term "buzz" of energy that only lasts at most for a couple of weeks or it increases confidence and enthusiasm but does nothing for being emotionally competent which can lead to well intended blunders.

"Hard-nosed" evaluations are rare. Most often evaluations are nothing more than happy sheets inquiring whether or not you enjoyed the presentation. I get a lot of these at work. Often there is a inservice that we are required to attend, yet when we evaluate the presenter, we are often asked whether we found the topic interesting or enjoyable. People may, at most, talk about it for a day or so before reverting back to old habits. More companies should be "hard-nosed" in this evaluation process unless they enjoy wasting time and money.

Emotional Competencies: Guidelines for Learning

The following is a list of Goleman's guidelines for teaching emotional competency:

1. Assess the Job: Focus on the requirements of the job.

2. Assess the Individual: Tailor the training to the individual's needs.

3. Deliver Assessments with Care: Remember to give "artful critiques."(see My Oral Presentation File)

4. Guage Readiness: Train only when the employee is ready to learn.

5. Motivate: Inform them how it will help them to do their job.

6. Make Change Self Directed: Have them choose their own goals. Other people's goals will have no meaning. This is not a case of "one size fits all."

7. Focus on Clear, Managable Goals: Create a workable plan without unrealistic goals.

8. Prevent Relapse: Turn lapses and slip-ups into opportunities to enforce the lessons that were taught.

9. Give Performance Feedback: Provide specific and immediate feedback, not fuzzy accounts.

10. Encourage Practice: Look for opportunities to implement what was taught.

11. Arrange Support: Build a network of support for the person who is attempting to change.

12. Provide Models: Lead by example.

13. Encourage: Support the change, no matter how small.

14. Reinforce Change: Reward with praises, a raise, or increased responsibility.

15. Evaluate: Don't forget to evaluate the training.

In theory this sounds as if it will work. However I believe we should remain skeptical until there has been enough research done to satisfy the requirements of #15. If this method is indeed effective we should definitely implement this system into the driver education curriculum.

Teaching Skills That Matter

In order to get an MBA degree from the Weatherhead School of Management at Case Western Reserve University in Cleveland, one must first pass a few courses that focus on the cultivation of emotional self-control. These involved an individualized learning plan that lasted for a total of nine weeks: Two weeks for an initial assessment and seven weeks to work toward a result. There was found to be an 86% improvement of abilities for those going through the program. A follow up three years later found that students were still applying and practicing the abilities that were learned in this course.

While I agree that this can be essential for the general curriculum for many colleges, I believe that the undergraduate course requirements are quite extensive as they are now. If we were to implement these courses into the core requirements some courses should be dropped to ensure that it is possible to graduate in four years. If the study found that this program was so effective, such a program should ultimately be required of all drivers before they get their license. Additinally, if people need to invest this much time into acquiring a license, they may not be so quick to take advantages and abuse the privelege of driving.

Getting Back to Work

There is a certain Jobs Program at eh University of Michigan that focuses on getting people who have lost their jobs back to work. People completing this course find work about 20% faster than others who do not take the course. This course has been effective for everyone who completes it. They do not teach some secret skill, just emotional competency.

Emotional competencies help us to find and keep jobs. Depression accompanied with the loss of a job is like being in double jeopardy. Each feeds off the other until the person is stuck in an endless downward spiral. The class helps by teaching skills to escape from this mess. One skill that is taught is optimism. This helps the person cope with rejections that are inevitable anytime anyone is looking for work. They emphasize that dispair isn't a marketable goal.

It was also found that these jobs grads earned more than $6420 more than those who did not go to the training course after their second year back at work. In fact, the estimated lifetime earnings for the emotionally competent individuals were $48,000 more than the earnings of the rest. Emotional competency not only helps people to get and keep jobs, it also helps them to excel at what they do.

I think that if this jobs program is so effective, it should be implemented into the unemployment process. In my opinion, there are too many people on unemployment. I was once on unemployment and the program only provided money, but didn't actually help me find a job. As long as I kept trying to get a job, I was recieving an unemployment check, regardless of my ability to get a job. I think that we should be helping get these people off of unemployment, not just handing them free money (though I must admit, it was a good deal at the time).

Questions and Answers

Jeanna Barr

"Seeing that emotional competency is low in the workplace it would seem to the benefit of the corperations to require emotional competency courses and activities; such as the mindfulness course, possibly meditation, and having a gym on the premises or paying for gym use. Why then is there a severe lack of use of emotional competency techniques?(In your opinion) Why are these emotional competency techniques that are in effect so poorly effective? Or are they?"

I feel that many workers are not emotionally competent or choose not to exhibit emotional competency in the workplace. I feel that these courses fail to produce the desired results because they are still far from being perfected and many doubt or refuse to acknowledge its importance.

Bernadette Jambaro

"How can you manage your emotions when dealing with a hostile customer?"

I would manage my emotions in the same way as we have learned to manage our emotions while on the road: by providing an alternate explanation for their rage. In doing so, you remain calm and keep your emotions in check through the understanding that the customer is not making a personal attack on you; rather they are angry about the service or product and choose to express themselves by being hostile. By "detaching" yourself personally from the situation you can maintain a professional relationship with the customer even though they are hostile. You do not have to respond with an emotional outburst.

"If a worker was incompetent in a job, what is the best approach in making this worker more competent? Can this be related to driving?"

The best approach would be to address the problem immediately and make the employee realize the detriment that he is causing to the company by providing specific examples of his incompetent behavior and the ensuing consequence. It is important to inform the employee that appropriate measures will take place if his behavior fails to improve. However, it must be made clear that this is merely in accordance with company policy and not a threat. Then the employee understands that his fate at the company rests in his own hands. Also encourage and support any efforts or changes that the employee makes to better his behavior. A similar contract between parent and child could be established when the child is learning to drive. Guidelines can be clearly laid out and praise can be given toward expemplary behavior while driving.

Dr. Leon James

"What is the difference between emotional intelligence and integrity (honesty) for sales people and for employees of sales companies?"

Integrity may merely reflect honesty in a sales situation, and although it is a laudable trait, honesty alone does not make sales. If honesty is delivered without applying emotional intelligence, one can come across as being somewhat blunt or insensitive. Emotional intelligence allows one to manage emotions appropriately and establish a rapport with the customer which is definitely beneficial to making the sale.

"Why aren't more workers trained in EIQ?"

The fact is that many workers are "trained" in EIQ. I have trained in quotations because although many do take a EIQ training course, the effectiveness of the course often leaves much to be desired for. Thus, they are trained, just not trained properly. As for the companies that do not have a EIQ training course, many of these managers do not believe in the importance of EIQ and think that is a waste of money. It is often the case that such managers are low in EIQ as well.

"What is the difference between therapy and EIQ groups/exercises?"

EIQ groups or exercises can be considered as a type of therapy. While therapy's ultimate goals are often focused around self-improvement, EIQ exercises' goals are to increase productivity in the company. However, this is achieved though self-improvement (like therapy) which in turn translates into higher productivity for the company.

"How can we teach drivers to drive with EIQ?"

I stronly believe that the only way we can teach drivers EIQ is to somehow make them motivated to learn to drive that way. No matter how hard you try to force someone to learn the principles of EIQ, if the desire isn't there, then the driver will fail to learn. For some, this task may prove to be next to impossible. By implementing a driver education class beginning in early childhood we may be able to promote this willingness to learn to drive with emotional intelligence.

Kisha Kawakami

"Does the process of learning to drive involve a certain degree of the "yuk" factor?"

Like all other learning processes, learning to drive is not without its own "yuck factors." They include the stress of being ridiculed by peers if they fail the driver's test, anxiety of having to remember and obey all traffic laws, no matter how obscure, and even possible unintentional confrontations with other drivers.

"How might meditation be incorporated into emotional driving? Can it be used only before and after or during as well?"

In transpersonal psychology we learned that the reason for meditation is a method of practicing mindfulness. Mindfulness is achieved not only as a heightened sense of awareness, but also in learning to accept experiences as they are rather than attaching labels to them as we are so accustomed to. Mindfulness practices can be incorporated during driving as well by accepting situations as they are rather than allowing your unconscious to attach a label to it. For example if a driver cuts you off, you perceive the event as just that: a driver merged in front of you. The experience is neither good nor bad. It is just one of many experiences that took place during your drive. By not attaching a negative label to the event, it becomes harder to get angry and consequently, can reduce the incidence of road rage.

Marissa Muraoka

"What is your opinion of the "yuck!" factors?"

I acknowledge the existance of these "yuck factors" as they are evident in all aspects of our lives. Any learning process involves facing and dealing with yuck factors. Although not all can be prevented or avoided, emotional intelligence helps to cope with the yuck factors and thus reduce the threat that they pose to any learning experience.

"What is the first step in teaching an adult over 40 emotional intelligence? Can we go about teaching them in the same way as we teach children emotional intelligence?"

The first step is recognition. The individual needs to realize that there is a problem that can be solved by learning to be emotinally intelligent. In doing so the person takes responsibility for their action and can go about working toward correcting it. As I mentioned in "The Good News" section, maturity is a factor and it may be easier to "teach an old dog new tricks."

"Spray and pray...there are many employees who look foreward to having a "distraction" or "class" that would take them away from doing their work. If an employer believes that this emotional intelligence class would benefit the employees, how can we really make the employees see the importance of learning and applying what was taught?"

This is one of the problems that the current system faces. Different people are motivated by different things. The trick is to find what will motivate the employee and tailor the training program to fit their needs.

Nicola Nakama

"We talked about the individualism--this is probably true in driving--You have to deal with everyone one at a time because we all are different and are on different levels of emotional intelligence. Sure you could start general knowledge but then each person needs a personal program... What do you think?"

I agree with your point. There are many basic skills of emotional competency that should be reinforced universally, but certain aspects must be tailored to fit the individual's needs. A general course would be in order with a more personalized follow up program.

Alma Valvieja

"Does the "yuck factor" relate to driving?"

As with learning any new skills, there are "yuck factors." They include the stress of being ridiculed by peers if they fail the driver's test, anxiety of having to remember and obey all traffic laws, no matter how obscure, and even possible unintentional confrontations with other drivers.

"Do you think that doing meditation before driving will reduce road rage or agressive driving? (Do you recommend meditation for all drivers?)"

I strongly believe that if meditation is done correctly before driving, road rage will drastically decline. Meditation is a practice of mindfulness which is learning to accept experiences for what they are. A mindfulness exercise before driving will get the driver into that mind state before they get on the road and if someone cuts them off and they are in that state of mind they are more likely to percieve the event mindfully as just that: a person cutting you off and not attaching the "bad" label to the experience as we are so accustomed to doing so.

Personal Reactions

I was very pleased with the way both the oral presentation went and how my web page turned out. I was also glad to have had the opportunity of reading from Goleman's Working With Emotional Intelligence. In spite of his constant "biological references" that really served no purpose, the chapter did provide many inciteful points. I enjoyed the reading in this book and look foreward to applying the principles that I have learned here to my work as well as to my driving.

Other Oral Reports

All I can say is, "wow!" I was impressed with both the organization and content of all of the reports that were posted in the 409b section. Although each had their own style, they all were detailed and thourough in their summaries and questions that were answered. As I looked back on the question that I asked, I found well thought out and meaningful responses. I only hope that my report upholds the high standards that my peers have set before me. Upon completing this report I understand how much time and effort that each person put into this project. Congradulations to everyone!

Suggestions for Future Generations

If you have the chance to read this other book, please do so. It is very practical and the points in here are applicable to everyday life, not necessarily only in the workplace. Don't wait until the last minute. If you do you may feel rushed and not able to fully enjoy what Goleman has to say. I strongly believe that there are skills here that can help you get, keep, and excel in your career.

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My Report1: How Music Affects Drivers: Should We Rock While We Roll?

My Report 2: Being a Driving Buddy: Backseat Driving as a Favor

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