Emotional Intelligence

Probably the most important competencies of a financial planner are those of emotional intelligence (EI). The model introduced by Daniel Goleman focuses on EI as a wide array of competencies and skills that drive leadership performance. Goleman's model outlines four main EI constructs:

1. Self-awareness — the ability to read one's emotions and recognize their impact on oneself.

2. Self-management — involves controlling one's emotions and impulses and adapting to changing circumstances.

3. Social awareness — the ability to sense, understand, and react to others' emotions while comprehending social networks.

4. Relationship management — the ability to inspire, influence, and develop others while managing conflict.

Goleman includes a set of emotional competencies within each construct of EI. Emotional competencies are not innate talents, but rather learned capabilities that must be worked on and developed to achieve outstanding performance. Goleman posits that individuals are born with a general emotional intelligence that determines their potential for learning emotional competencies.