I'd like to do is share with you how emotional intelligence can help us be better betas and why it's this skillset particularly, which is going to help along the way. And by emotional intelligence, I simply mean how we handle ourselves, manage ourselves, lead ourselves, and how we handle our relationships. And I'll go into it in more detail. Interestingly, I spent yesterday morning with, one ofthe big four banks here in Australia, the c e o, his direct reports and his high potentials, the people that they saw as next generation for top leadership there. And they wanted to learn about emotional intelligence and leadership. The reason was that not only are each of those executives trying to improve themselves along these lines, but they see that by doing it together, they can bring the whole organization along. And by doing that, they can grow their business. It's actually a strategic decision. There are two kinds of strategy. You know, one is exploitation and one is exploration. Exploitation was embodied by, um, the Cocos of Blackberry. Anybody here have a blackberry? Exactly my point. So the, they had a wonderful product for a long time. They were the first in the smartphone in area. And in that space, they captured the market until something else started to happen. Smartphones were developed by Apple, by Samsung, and they didn't see it coming. They just kept developing their keyboard. In fact, in 2007, there was a small squib in, what was then the major news magazine in America, time Magazine. It said, you know, there's a new word in the English language. The word is puzzled. It stands for puzzled and pissed off. And it's how you feel when someone takes out their blackberry and starts talking to someone else. Things have changed. The norms for attention have changed. Now we don't feel puzzled, but also you can tell it was 10 years ago because they said Blackberry instead of iPhone. 50 the other str strategic approach is exploration. That's what Steve Jobs was brilliant at. It's looking at the next new thing, innovating, being able to be there before your competitors. So emotional intelligence may seem counterintuitive, but I'm going to argue that it's what makes us better. I first started to realize the importance of emotional intelligence. years ago when I went to college, I grew up in a farm town in the Central Valley of California. And actually the outskirts of Perth reminded me of where I grew up. But this town was, um, not distinguished any way, but I managed to get into the most competitive college in America because they wanted to diversify. They wanted a kid who was from a public school instead of an elite prep school. And from somewhere else in those days, that was considered diversification. So I found myself, um, at this fancy college and met a guy who had perfect scores on every college entrance exam. This guy was brilliant, high IQ, but he had a problem. The problem was he couldn't get up in the morning on time, never got to class, never finished his papers, took him eight years to get his bachelor's degree. 50 he was brilliant on the IQ side. He was lacking in terms of how he managed himself. Some years later, I went to my 20th high school reunion and I met someone there who was the most successful person in our class at that time. I had known him pretty well in, in high school. He was someone who was really not a good student. He was so, so like an average, very average student. But he was a fantastic human being. He was the kind of person who you enjoyed doing things with, who really listened. It was very gracious. Put you at your ease. You had fun with him. 20 years later, he was the senior vice president of a company that then, and was the hottest company going, the hottest sector going. It was cable television. Then at the 40th reunion, I got the rest of the story. This guy had left that company, started his own company, became CEO, sold it at the peak of the market, and did something that from the point of view of all the people lived in my hometown, was a mark of success. And that was that he lived on a golf course in Florida. 50 he had a lot of emotional intelligence, not much IQ. And that makes sense to me. It, it, um, I met recently, the CEO of BlackRock. BlackRock is the world's largest investment company. It manages trillions of dollars. And he, he was puzzled. He said, can you explain why it is that I hire the best and the brightest from the very best schools or companies, and I still have a bell curve for performance? What's going on here? And I'd like to share with you the answer I gave him. It has to do with some research I did after I wrote emotional intelligence. I got very interested in business and remembered that my mentor at back in graduate school had written an article in the main psychology journal that was my field that was very controversial at the time. He said, if you want to hire someone, don't look at their IQ, don't look at their personality tests, don't really look at their business expertise. What you want to do is look in your own company at people who hold that position now or have held it in the past. Identify by whatever metric makes sense for that position, the top 10% The stars. And compare the stars with people in the same position who are only average in performance. Do a systematic analysis and identify the skills or abilities or competencies you see in the stars that you don't see in the average. It's called competence modelling. Anybody familiar with competence modelling? Most world class companies have competence models, particularly for top level executives. And I was able to get access to one to 200 of these, which was not easy because these are proprietary studies. Companies don't share the data. They want to know they're doing it for competitive reasons. But here's what I found. I aggregated the data and | just looked at, this is the very back ofthe envelope. How many of those abilities that companies themselves independently have identified as distinguishing their stars? How many of those abilities are based on cognitive strengths, IQ and technical skills or emotional intelligence, how we handle ourselves and our relationships? And what I found was that forjobs of all kinds, Emotional intelligence is about twice as important and it's twice as important in distinguishing that gr that blue line at the bottom is what you learned in school, your technical skills, it's what everyone else has. Those are threshold competencies, what you need to get the job, but they don't tell you how you'll do. Once you're in the job, will you be a star performer? Will you be a great team member? Will you become a leader? The higher you go in the organization, the more emotional intelligence matters. So for top level jobs, see sweet jobs, for example, 80 to 90% of the competencies the companies themselves identify as distinguishing stars here are based on emotional intelligence. It makes sense because what you're doing at that point is not using your technical skills or whatever, you've learned for that position in, in terms of cognitive abilities. What you're doing mostly is managing people. The art of leadership is getting work done well through other people. So, there was just a study done Of engineers and what distinguished the best engineers from average engineers and turns out success as judged by their peers. People who know the job well, and the person well correlates zero with IQ and enormously with emotional intelligence. Why would that be? It's because there's a floor effect. To be an engineer, to be an MBA, to be a professional of any kind, you need an IQ about a standard deviation above the norm. Above a hundred need to be 115 or better. The floor effect is once you are in that role, everyone else is as smart as you are. So IQ drops away as a predictor of success. Emotional intelligence remains this one ability here in the top level jobs that's based on cognitive abilities is very telling. It's big picture thinking, pattern recognition, understanding how a change here in a complex system is going to ramify over there. How a decision made today will matter in five years or 10 years. This allows you to identify your strategy, but once you have your strategy, you can only get there through your people. You have to do what you have to communicate, persuade, listen, dialogue, inspire, motivate, and all of those are emotional intelligence skills