There is no more precarious role than leading a start-up business. According to the latest research, seven of ten will fail in 10 years or less. But, since start-ups contribute most of the jobs in the United States and have done so for the last several years, we would all be well-served to understand what contributes to the success of those leading start-up businesses.
A recent study by Multiple Heath Systems (MHS), Toronto, Canada and the University of Toronto in which they compared Emotional Intelligence (EI) scores of top executives belonging to the Young Presidents Organization (YPO) against the general population revealed some interesting areas of differences between the two groups. Using an instrument that measures Emotional Intelligence (EI) known as the EQi, MHS and the University of Toronto found significant differences between the executives leading young companies and the normative population. The EQi measures 15 different subsets of individual traits and the Executive group was found to score substantially higher in 8 of the 15 subsets. Four of the greatest differences occurred in scores involving Empathy, Self Regard, Reality Testing and Problem Solving. Executives who possessed higher scores in these four areas were more likely to achieve higher levels of performance and profits which some would define as success.
Before we talk about the practical value of this data, lets review the meaning of each of these four attributes:
• Empathy - the ability to recognize, understand and appreciate the emotions, moods and feelings of others
• Self Regard - the ability to know and understand one's strengths and weaknesses
• Reality Testing - the ability to assess what is realistic and what is not
• Problem Solving - the ability to solve personal and interpersonal problems
Certainly, the "Fabulous Four," as I call them, almost look like common sense answers to the question; What skills does a person need to succeed in starting a business? Possibly they are, but having above average capacity in those four areas is somewhat rare and makes the leadership job much easier, somewhat like a 6'8" basketball player dunking the ball through a 10' high basket - not too challenging.
So why don't we just line up people with superior capacities in the "Fabulous Four" and have them start a business. We wish it were that simple. But, unfortunately, there are other dimensions to success, in starting a business. The "Fabulous Four" can enhance your leadership success but without the remaining two essentials: Passion and Luck start-up success may be elusive.
Having "Hair On Fire" passion for what you do is an essential ingredient to start-up success. You are not likely to have a successful start-up with out unparalleled Passion for the business. All that being said, we have found Passion to be the necessary fuel that keep a business going in spite of obstacles.
Few will ever acknowledge just plain luck as an ingredient for start-up success. Yes, a certain degree of luck, though not essential to success, is frequently a major part of it. Having started four new businesses, succeeded in two and failed in two, I can personally attest to luck, both good and bad, playing a role in the success and failure of a start-up.
Earlier, I spoke of the "practical value" of this information. Here it is, as practical as it will ever get. If you are wanting to maximize your success, as a leader of a small business start-up, build your skills in the "Fabulous Four" (Empathy, Self-Regard, Reality Testing and Problem Solving). Do so with Passion and hope for a little Luck. Good Luck, that is.
A recent study by Multiple Heath Systems (MHS), Toronto, Canada and the University of Toronto in which they compared Emotional Intelligence (EI) scores of top executives belonging to the Young Presidents Organization (YPO) against the general population revealed some interesting areas of differences between the two groups. Using an instrument that measures Emotional Intelligence (EI) known as the EQi, MHS and the University of Toronto found significant differences between the executives leading young companies and the normative population. The EQi measures 15 different subsets of individual traits and the Executive group was found to score substantially higher in 8 of the 15 subsets. Four of the greatest differences occurred in scores involving Empathy, Self Regard, Reality Testing and Problem Solving. Executives who possessed higher scores in these four areas were more likely to achieve higher levels of performance and profits which some would define as success.
Before we talk about the practical value of this data, lets review the meaning of each of these four attributes:
• Empathy - the ability to recognize, understand and appreciate the emotions, moods and feelings of others
• Self Regard - the ability to know and understand one's strengths and weaknesses
• Reality Testing - the ability to assess what is realistic and what is not
• Problem Solving - the ability to solve personal and interpersonal problems
Certainly, the "Fabulous Four," as I call them, almost look like common sense answers to the question; What skills does a person need to succeed in starting a business? Possibly they are, but having above average capacity in those four areas is somewhat rare and makes the leadership job much easier, somewhat like a 6'8" basketball player dunking the ball through a 10' high basket - not too challenging.
So why don't we just line up people with superior capacities in the "Fabulous Four" and have them start a business. We wish it were that simple. But, unfortunately, there are other dimensions to success, in starting a business. The "Fabulous Four" can enhance your leadership success but without the remaining two essentials: Passion and Luck start-up success may be elusive.
Having "Hair On Fire" passion for what you do is an essential ingredient to start-up success. You are not likely to have a successful start-up with out unparalleled Passion for the business. All that being said, we have found Passion to be the necessary fuel that keep a business going in spite of obstacles.
Few will ever acknowledge just plain luck as an ingredient for start-up success. Yes, a certain degree of luck, though not essential to success, is frequently a major part of it. Having started four new businesses, succeeded in two and failed in two, I can personally attest to luck, both good and bad, playing a role in the success and failure of a start-up.
Earlier, I spoke of the "practical value" of this information. Here it is, as practical as it will ever get. If you are wanting to maximize your success, as a leader of a small business start-up, build your skills in the "Fabulous Four" (Empathy, Self-Regard, Reality Testing and Problem Solving). Do so with Passion and hope for a little Luck. Good Luck, that is.
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