Why Emotional Intelligence Has Never Mattered More

It’s certainly not a dull time to be a leader.

We’re living through a geopolitical and economic moment that feels at once volatile, uncertain, complex and ambiguous—VUCA, in management-speak. Facing rapidly escalating trade disputes, market fluctuations, military conflicts and natural disasters, many believe the primary job of today’s leaders is to figure out to how to navigate unknown terrain.

At the same time, we’re also experiencing the blistering expansion of the data age. We have unprecedented quantities of information and ever-more-sophisticated artificial intelligence capabilities that make it possible to get logical algorithmic solutions to all kinds of problems with a few keystrokes.

You might think the latter situation would offer a tidy solution to the former—that data should drive the resolution the situation many leaders find themselves in today.

But Lobna Chérif believes there’s a better way.

Chérif is an associate professor and chair in resilience at the Royal Military College of Canada. She also teaches a Queen’s Executive Education course at Smith School of Business devoted to emotions and effective leadership. Her work centres on translating the science of psychology into strategies that help people activate their emotional intelligence and use it as a superpower. “I study what’s right with people,” she says, “and how to help them grow through life pressures and thrive in the face of adversity.”

In Chérif’s view, emotional intelligence is quickly becoming the most important tool a leader can have in their belt. In this conversation with Smith Business Insight contributor Deborah Aarts, she explains why.

Emotional intelligence is a concept many of us are aware of but perhaps unable to precisely define. What does it mean to you?

If you look at the term, you’ll see that it brings together two fundamental aspects of human functioning: emotion and intelligence. Intelligence is traditionally associated with the cognitive domain: the ability to acquire, to memorize, to process, to apply knowledge. Emotions belong to the more affective domain, which shapes how we feel, how we react and how we relate to the world around us.

Emotional intelligence is this intersection between these two spheres. It reflects our capacity to perceive, to understand, to express and regulate our emotions. It’s not about how smart we are. It’s about how wisely and skillfully we navigate our inner world and our relationships.

Fundamentally, it is the science and the practice of how we are with ourselves, and how we are with each other.

Why is this beneficial for leaders?

Emotional intelligence can help us recognize, understand and regulate our emotions. In professional environments, this translates into more adaptive stress management, deeper interpersonal trust, stronger collaboration and greater agility in the face of uncertainty and change.

Leadership is not a purely cognitive enterprise. It’s profoundly relational and emotionally charged. It’s emotional labour to work with and lead people. There are many emotions that are involved in work—from you and from other people. And so, being able to be connected to your emotions—and to work with, recognize, express and control them—is key in building relationships, leading people and making good decisions.

That last point might seem counterintuitive to advocates of more stoic approaches. What do we know about how emotional intelligence improves decision-making?

Many people understand that decision-making is based on a thought process. But it is also very much based on how you regulate your emotions, and how you let them play into your thinking.

Emotionally intelligent leaders can recognize their emotions and the impacts they have on their thought processes. They have self-control and the ability to self-regulate. And they tend to consult more with others. As a result, they are less likely to make emotionally charged decisions, especially under stress and uncertainty.

How does the emotional intelligence of leaders affect the teams they manage?

Emotionally intelligent leaders are more likely to create environments where psychological safety is valued, where people feel seen and heard—they can take risks, be creative, bring ideas forward and grow. These leaders create conditions where there is better team cohesion and higher morale. And they have greater profitability and engagement as a result. Organizations that train leaders in emotional intelligence see clear benefits.

Can you share any real-world examples?

Absolutely. Take American Express. They started training in emotional intelligence and saw significant performance gains. For instance, they showed improvement in productivity through a stress management program grounded in emotional awareness and regulation. Or look to L’Oreal, which has hired people based on their emotional intelligence, and saw substantial revenue growth and dramatically reduced turnover as a result.

These are big organizations. And they have shown clear results from hiring, and then training, their leaders and their teams in emotional intelligence.

How does all this gel with the rise of AI? Does the ubiquity of data make emotional intelligence more or less relevant as a management capability?  

It is more essential than ever. Data without discernment leads to decision fatigue and information overload. Without emotional regulation, our judgment can be impaired.

I see emotional intelligence as the interface between raw data and wise action. As machines grow more intelligence, human nuance remains our most enduring competitive edge.

Why is that?

We need to humanize the data we have. Highly emotionally intelligent leaders will take the information at hand and ask questions like, ‘But what does this mean for our people?’ or ‘What does this mean for my organization?’ Because they know the nuances of their organization and because they know the people that they work with, they will be able to take those numbers and treat them through the lens of ethics, values, long-term vision and purpose.

Data cannot be empathic. It should support human-centred decisions. It should not be a substitute for it.

What’s your response to someone who might still think of emotional intelligence a “soft” skill?

I would reframe it as a core competency. Emotional intelligence underpins the success of the so-called hard outcomes. It improves innovation, crisis response and strategic execution. In my view, if we start to think about emotional intelligence just a soft skill, or a nice-to-have, it is strategically dangerous.  

So, in a very complex and emotionally charged work world, emotional intelligence is not – and should not – be treated as optional. It is foundational to sustainable performance and to enduring leadership.