Why is Leadership Important to My Company? Will it Really Make Me More Profit?Posted in : HR Updates on 27 February 2013
Paul Fieldhouse writes:
This article takes a closer look at Emotional Capital, its three Core Elements, and it becomes clear why improved leadership has such an impact on our bottom line.
1. External Emotional Capital – the value of the feelings and perceptions held by the customer and the external stakeholder towards your business. The only way to create real profit is to attract the emotional rather than the rational customer by appealing to his or her feelings and imagination. Customers want to buy from organisations they like and who are like them. This creates brand value and goodwill and results in repeat sales through customer loyalty, lifetime relationships and referrals. In other words, the brand creates trust and recognition and is a promise and an emotional contract with each customer.
2. Internal Emotional Capital -the value of the emotional commitments held in the hearts of the people within your business. It can be is seen in the energy and enthusiasm that people bring to work to create products and solve problems. Every relationship that your business has with everyone it touches is an asset and an investment. To build emotional wealth you must treat your people as investors because that is what they are — intellectual and emotional investors. Every day they bring their heads and hearts to work. And if they don’t, you won’t be in business very long.
3. Intra-personal Emotional Capital – the level of positive, focused energy that you invest at work and in your personal life. As a leader, you will inspire or demoralise others first by how effectively you manage your own emotional energy and, second, by how well you mobilise, focus and renew the collective energy of the people you lead.
So as leaders we should be looking to create emotional wealth to ensure our competitive advantage. The good news is successful creation of this emotional wealth is a rewarding and exciting experience!
Who is living the dream in your business? To have a truly great organisation you must make everyone who comes in to contact with your business feel important, and this greatness is only attained when great leadership creates emotional capital by inspiring everyone in your organisation to live the dream and bring their own creative contribution to the vision of the business.This article is correct at 04/11/2015
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