The Official Publication of the Corporate Facilities Council
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A More Efficient
Way to Buy Construction Services
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or Stealing the Spotlight?
From Your President
News & Events
Denise Johnston has been actively involved in IFMA on a variety of levels in the Greater Triangle Chapter as well as the Corporate Facilities Council. She served as president of the Greater Triangle Chapter (2008-2009), Programs chair of the CFC (2010-12) and also as Secretary of the CFC (2012-14).
Mike Petrusky interviews Leigh Stringer, LEED AP, author of The Healthy Workplace.
Part 2 of 2
From Your President
Are You Sharing the Stage
While the management of facilities can be day-to-day serendipity in terms of our workloads, we do operate in cycles. I don’t care what part of the USA or other regions of the world in which you live, we all prepare for seasons, whether they be the usual four or events of another kind: wind season, fire season, mudslide season, not to mention conference season, tourist season, inventory and budget and planning seasons—we know certain activities are unavoidable parts of our year, and some we may even look forward to because we love the challenge of managing projects successfully.
As we enter 2018, we focus on our current tasks and remind ourselves of what the first quarter of the year will require of us. Facility management can be an exciting and truly innovative profession, but we’ve got our common and mundane tasks just like any other field. Do you hate the bidding process as you review contracts? Check out the article by Jacob Kashiwagi and consider doing things differently. Do you know how to give credit where credit is due, or does recognition overshadow leadership for you? Liz Bywater’s article may get you thinking. In the constancy of all the issues we face, are you growing in emotional intelligence or ignoring that aspect of your development? Tony Kubica and Sarah LaForest’s writings may cause you to look inward, which could prove valuable. Don’t pass up “Joe’s World” or “Editorially Speaking”—both always provide food for thought.
If you’re familiar with one of the important movers and shakers of our profession, Dr. Dean Kashiwagi, IFMA Fellow, Fulbright Scholar, and retired ASU professor, you might want to invest in some professional development in January and attend his Best Value Conference, for which he is offering a significant discount for IFMA members. It’s not too late to sign up, and Phoenix in the first month of the year may be just the away time you need! See the announcement within. And start thinking about whether you can attend Facility Fusion in Chicago in March!
My best wishes to all our Corporate Facilities Council members and friends—let’s expect 2018 to be an exciting, fulfilling, and professionally rewarding year!
Facility, the official publication of the Corporate Facilities Council of IFMA, is published quarterly.
Copyright 2017 All Rights Reserved.
IFMA Corporate Facilities Council 800 Gessner Road, Suite 900
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Executive Board 2016-18
Denise Johnston, CFM
Beth Osgood, CFM
Koch Business Solutions
Joe Selby, CFM
Wells Fargo Bank
Immediate Past President
Steven R. Pons, CMP, AssocRICS
Sarah Wortman, CPSM
Koch Business Solutions
Sue Thompson, CMP
AAA Club Alliance
Wayne Whitzell, LEED AP, BEP, GBO
Buck Fisher, CFM, IFMA Fellow
Facilities Management & Operations Assessment
Alice Houguisson, CFM, SMP Edelman
Jeff Martin, CMP
Wells Fargo Bank
Melodee Wagen, MCR
Workspace Strategies, Inc.
By Jacob Kashiwagi
The construction industry has had poor performance over the last decade. The following continue to be issues in the industry:
Only 2.5% of construction projects globally have been defined as successful (scope, cost, and schedule).
Only 30% of construction projects completed within 10% of planned cost and schedule.
25% to 50% waste in coordinating labor on construction projects.
Management inefficiency costs buyers of construction between $15.6 and $36 billion per year.
Rework by contractors is estimated to add 2-20% of expenses to a contractor’s bottom line.
An estimated $4 billion to $12 billion per year is spent to resolve disputes and claims.
A More Efficient Way to
Buy Construction Services
continue d >
Arizona State University
College Avenue Commons Building─Home of PBSRG
(Go here for references to these studies)
In 1991, Dean Kashiwagi identified that the only difference between high performance and low performance in the construction industry was the ability of construction buyers to utilize the expertise of contractors. From his observations of the industry, he created the industry structure figure to explain the problem. Each of the four quadrants in the industry structure figure explain different environments in the industry. In the price based or low bid environment, risk is minimized by management, direction and control (MDC). In the Best Value Environment, risk is minimized by the utilization of expertise. The Best Value Environment is less expensive, transparent and more efficient. It uses the simple approach, hire experts and let them do their job.
The movement from the Price Based to the Best Value Environment requires the following:
1. Minimize management, direction and control.
2. Minimize thinking and decision making [when thinking and decision making is required, utilize expertise].
3. Use metrics to identify what is going on, and minimize any directions on how to do the job.
4. Hire based on expertise on the required project [how many times has the expert contractor done a similar project, what was their time and cost deviation, customer satisfactions, and what value was offered by the contractor].
5. Minimize cost by allowing the best value contractor to preplan, create transparency and perform risk mitigation.
The solution to ensure high performance on procuring services is simple: utilize expertise. Hire an expert contractor. Then allow the expert to have full control of the service. Although the solution is simple and makes sense, buyers usually have many issues and questions with this approach. Some of these include:
1. Giving up control (People have a difficult time giving up the position of power).
2. Contractors taking advantage of the buyer.
3. Being able to find an expert contractor.
4. How do we know we are receiving a good deal?
These concerns are what caused buyers to adopt the traditional or low bid method of procurement and project delivery. The only issue with this methodology is that buyers didn’t realize the impact of managing, directing, and controlling a contractor. The following are issues that arise from managing, directing, and controlling a contractor:
1. When the non-expert creates the project, complexity and non-transparency increases.
2. The more decisions a buyer makes, the more the buyer becomes accountable. As a result, the contractor is less accountable for the performance of the project.
3. The more buyer management on a service, the less skilled the contractor’s workers have to be.
4. When buyers tell contractors detailed service requirements it attracts and enables non-expert contractors to compete for their service.
5. Hiring and maintaining in-house expertise requires a large amount of resources.
PBSRG developed a procurement and management model called the Best Value Performance Information Procurement System (BV PIPS) to help buyers overcome their concerns and be able to utilize the expertise of expert contractors.
The Best Value Performance Information Procurement System
The BV PIPS is the only system that enables the expert contractor to take control of the project. The system is made up of three major phases:
1. Selection – The BV PIPS system selects contractors based upon their level of expertise and cost, and not a scope of work.
2. Clarification – Once the contractor with the highest level of expertise and lowest cost is identified, then that contractor is brought into the clarification phase. It is at this time the contractor will identify the scope of work and a plan to complete the project. The contractor is required to identify the final deliverables in terms of performance metrics and how they will measure their performance throughout the life of the project.
3. Execution – Once a contract is signed the contractor will be responsible for turning in a weekly risk report (WRR). The contractor is required to document any deviations to their plan on this report and show continually updated performance measurements for the project.
Using the BV PIPS system enables a buyer to procure a service without knowing what they need. They only need to know their high level objectives and constraints. The system then requires the contractors to know how to achieve the objectives, be able to meet the constraints of the client, explain to the client how they differentiate from other contractors, and convince the client that their solution will work.
The BV PIPS process enables the client to utilize the contractor’s expertise and still ensure contractor accountability, high level of expertise, and high performance through the following:
1. The BV PIPS has cost controls built into the selection phase that eliminates contractors that cannot justify their pricing. BV PIPS projects have been found to save buyers around 30-40%.
2. To ensure the contractor doesn’t take advantage of the buyer, the contractor is required to pre-plan the entire service before a contract is signed.
3. During the selection and clarification phases, the BV PIPS requires contractors to submit verifiable performance information to identify their level of expertise and requires contractors to resolve all concerns and questions in a way that the buyer can understand and accept. If the contractor cannot do this, they are dismissed from the process.
4. The client has the option of dismissing the selected contractor in the clarification phase, if their proposed scope of work does not meet the client requirements.
5. The system through performance metrics creates transparency that ensures all parties know the status of the project at all times.
Does it Work?
Dr. Dean Kashiwagi, Director of PBSRG, created the Best Value Performance Information Procurement System (BV PIPS) in 1991. It has been tested for the last 25 years at Arizona State University (ASU) by his research group, The Performance Based Studies Research Group (PBSRG). The first test of the process was performed in 1994 to identify roofing systems and contractors for private companies. The success of the program caught the attention of the Dutch Ministry of Infrastructure, Rjikswaterstaat. They later used BV PIPS on delivering 1B euros of Dutch road construction in 2009. The system has been tested and refined over the last two decades. As a result, it has evolved from a selection process to include a project/risk management model. The system now encompasses the entire supply chain from a projects’ or services’ inception to the maintenance and completion.
The following are documented performance results of the Best Value PIPS system:
● The system is the most licensed technology at ASU with 47 licenses issued by the AZTech group.
● BV PIPS tests have been conducted in 32 states in the U.S. and seven different countries besides the U.S. [Finland, Botswana, Netherlands, Canada, Malaysia, Saudi Arabia, and India].
● The system has a documented performance over 1915 projects or $6.4 billion (1634 projects, $4B construction and 268 projects, $2B non construction) with a customer satisfaction of 9.8 (out of 10), 93.5% of projects on time and 96.7% on budget.
● The system’s most dominant result is from a test at ASU’s business services and procurement department. The PIPS system generated $100M of revenue based on the method in the first three tests, and currently receiving $110M a year from using the method.
● The system minimizes up to 90% of the buyers’ risk management efforts and transactions This is the only documented reduction in management in the construction management industry.
● The testing of the system has won multiple awards (i.e. 2012 Dutch Sourcing Award, 2005 CoreNet Global Innovators of the Year Award, the Hawaii 2001 Tech Pono Award for Innovation etc.).
For references to these audits go here:
The results of BV PIPS have been audited four times by a third party group. These audits all confirmed that the performance claims of the BV PIPS were accurate. The four audits are as follows:
● The State of Hawaii Audit
● The Zuyd University and University of Twente Audit
● US Army Corps. of Engineers Audit
● Western States Contracting Alliance (WSCA) (former) & National Association of State Procurement Officials (NASPO) Audit
For references to these audits go here.
The Performance Based Studies Research Group provides a variety of educational offerings to meet everyone’s need to learn more about the Best Value PIPS model such as:
● On-line courses available 24/7 all year round no matter where you are located.
● On-sight professional development training (this is ideal for professional associations or companies); this is customized to fit your needs. They can be from 2 hrs. to a full day, based on your needs.
● Guest speaker or keynote for conferences, seminars, workshops, annual meetings, etc.
● Hands on training or implementations where your entire team will be walked through every step on an actual project this includes contractor training.
● Annual conference – 4 days every January in Tempe, AZ to learn everything there is to know about best value model and receive the latest books.
For more information about educational offerings, please contact Sylvia Romero at Sylvia.Romero@asu.edu or 480.965.1252.
Jacob Kashiwagi is an international procurement consultant and assistant research professor at Arizona State University.
Note: | Be sure to see this special offer for the 2018 Best Value Conference. IFMA members will receive a rare 50% discount. See the ad on page 13 for details. Act quickly─the offer expires on Wednesday, January 10, 2018.
Hint: Click on image to enlarge.
Dr. Kashiwagi speaking at a Dutch conference.
Ever work on a massively disruptive project that turns one of your facilities upside down only to have the whole thing go completely sideways? Sure, you have. It’s happened to every FM at least once. In fact, one of the things our corporate masters pay us the big bucks for is anticipating when big projects can go badly, what the fallout will be and having a plan for dealing with unintended consequences.
Actually, that might be the whole definition of what being a facility manager does for some executives.
But what about a mundane, no-big-deal project where the work is so routine that it’s almost impossible to anticipate it going wrong… where the project is so routine that you didn’t even think about potentially sideways outcomes? That’s real nightmare fuel right there, isn’t it?
A few days before Thanksgiving I had a root canal performed on one of my molars. When I was a kid I can remember my father going in to the endodontist to have a root canal done and it seemed horrific. The whole process involved multiple appointments and lots of pain. It pretty much topped the list of things I never wanted to experience. Thing is, in the 40 or so years since my dad’s root canal and the one I had performed on me the process has, like most things, undergone a massive change due to advances in technology. My father’s root canal consumed a week of his life. Mine was over with, start to finish, in under 45 minutes.
Not only that, but I’d judge the amount of pain from the Novocain injections to far outstrip the pain after the procedure by a factor of one hundred. As in – the poke from the needle hurt. The tooth that was worked on and the tissue around it felt normal within a few hours after I got home from the endodontist’s office. What used to be a major project is now mundane (and if anyone needs a reference to a great endodontist in Northern California, hit me up).
That said, the whole thing went to the dogs about four days later. Tooth was fine. But I learned that my 51-year-old jaw doesn’t like being held open for 45 minutes. The disc of cartilage that cushions the mandibular joint slipped out of place and locked my jaw so that I could barely open it. Eating solid food was impossible. Drinking soup was even a bit difficult and painful. Attempting to open enough to brush my teeth sent sharp pain shooting up the left side of my face through my eye. The pain was so intense it blacked out the vision in my eye temporarily.
To get things back to normal I had to go to an oral surgeon, be put under general anesthetic and have my jaw flooded with fluid and steroids so the surgeon could manipulate my jaw and float the disc back into place. As of this writing I’ve got about 70% of normal range of motion back and the prognosis is that once the soft tissues around the joint heal I should be back to 100% in a few weeks.
A routine procedure went haywire in a very uncommon and unexpected way.
The whole thing reminded me of an office move I was managing many years ago. As FM projects go, relocating the furniture and belongings of a handful of people from one building to the next has to be just about the single most mundane and routine things any facility manager does. In my case, at this particular company I was quite literally managing some kind of relocation project multiple times every month. If you’d asked me then what part of my job I was an expert at, managing moves would have assuredly been my response.
This particular move was utterly boring. We weren’t even moving furniture. Just files, computers and phones. The only thing a bit off the beaten path about this little move of 30 or so folks from one downtown building to another was the nature of the files. They contained highly sensitive documents, so as a layer of precaution our security department had insisted on hiring an armed guard to watch over the process. Due to restrictions on use of the freight elevators in each building we were executing the move late at night, arriving at the destination loading dock around midnight.
The whole thing was excruciatingly boring, until it wasn’t. Halfway through the process of unloading the boxes of files from the truck a random guy started staggering his way toward the loading dock from the opposite side of the street. The guard, who up until that point looked like he was ready to fall asleep standing up, was suddenly bristling with energy. He told me and the movers to step back and shouted at the random guy to turn around. Random man ignored him and continued to shamble his way toward us. When the guard upholstered his gun, my heart went into my throat. He showed his gun clearly and shouted to the random guy to turn around or he would fire on him. What happened next turned a routine move into a disaster.
The guard fired, and missed. Instead of running away, the random guy yelled a string of obscenities and ran toward us. The second time the guard fired he did not miss. The next 12 hours of my life involved police, news cameras and none of the remaining boxes and computers in the truck getting to the offices of the people who were supposed to be moved overnight. Our random friend wasn’t killed, but he was seriously hurt (and apparently on several interesting drugs).
The point of all this, I guess, is that stuff happens, and one of the skills we all need in life, personal and professional, is smiling in the face of adversity. In my case this month, that’s been something I could literally only do with half my face.
Joe Selby is a Retail Property Manager for Wells Fargo Bank, managing a large portfolio of buildings, responsible for capital planning, operations and ongoing maintenance programs.
By Liz Bywater, PhD
Leadership lessons from an evening of musical brilliance
I recently attended a fabulous musical performance by singer/songwriter Amos Lee. My daughter had given me the tickets months ago, knowing how much I enjoy the artist's bluesy, soulful, pared-down acoustic style. I've been anticipating the concert all summer, listening to my Amos Lee station on Pandora, and imagining I'd hear all those familiar songs performed live in concert.
Lee hit the stage, not as a solo act, but with his amazing band. He also shared the stage withLee hit the stage, not as a solo act, but with his amazing band. He also shared the stage with
Are You Sharing
the Stage or Stealing the Spotlight?
Dr. Dean Kashiwagi has been in the industry for 25 plus years and presented to more than 25 IFMA chapters throughout the country. He has seen the struggles of IFMA professionals to cut costs, minimize risk, and increase the quality of services received. After presenting at the 2017 IFMA WWP, he decided he wanted to do more to help the IFMA Community!
Dr. Kashiwagi has such a great love for the IFMA Community! He is giving an $800 discount (Promo Code: IFMAM17) for all IFMA members to attend the 2018 Best Value Conference.
The conference is focused on helping professionals learn to:
Reduce organizational costs by up to 30% while increasing the value and quality of services received.
Utilize performance metrics to ensure buy-in at all levels of an organization.
Increase their impact on their organization by minimizing the amount of information that they need to know.
Effectively use team members to achieve goals.
DON’T DELAY! REGISTRATION CLOSES JANUARY 10, 2018
Four days of training packed with presentations, training exercises, Q&A sessions, and group collaborations by world-class instructors on the process and latest innovations of the Best Value Approach.
January 15-19 | Tempe, Arizona
his invited musical guests, the Preservation Hall Jazz Band. Every one of these musicians was given time in the spotlight and the opportunity to take center stage.
The result was a phenomenal performance that I, and the rest of the audience, will not soon forget. The concert was a huge success because Amos Lee did more than simply take the stage as a solo performer. That, in itself, would have made for a terrific show. But in sharing the spotlight and showcasing others' talent, Lee orchestrated a performance beyond my highest expectations.
As a leader, are you sharing the stage as you should be? Are you leveraging the diversity and talent that sits within your organization? Are you creating outcomes that far outweigh anything one individual (you) could ever accomplish as a solo act?
Think about it, give it honest reflection, then rate yourself on a scale of 1-10. Ask yourself: How well (or, how often) do I do the following?
Showcase members of my team in front of key stakeholders.
Give my team the opportunity to lead the discussion, while I take a back seat.
Give credit to my team for successful outcomes.
Seek, consider, and incorporate diverse points of view.
Leverage the strengths and talents of my team.
Share credit with business partners who’ve contributed to a successful result.
Offer exciting leadership opportunities to my team.
Here’s how to interpret your score. 56-70: Exceptional! You are sharing the glory, showcasing talent, leveraging your team’s strengths, and collaborating for top results. Keep it up, and encourage your team to bring to the same approach to their teams and business partners.
35-55: Fair/Good. You sometimes share the stage, highlight others’ contributions, provide leadership opportunities and/or incorporate diverse perspectives. Do this more often and more consistently to ensure greater leadership impact and drive increased engagement among your team and business partners.
Less than 35: What’s holding you back? This is a good time for additional reflection.
Why aren't you sharing credit,showcasing talent, providing leadership opportunities or incorporating diversity of thought into your work as a leader?
Do you have a strong enough team, allowing you to confidently let go as you raise others up?
Have you identified the benefits of sharing the stage?
Do you worry that sharing credit might diminish your own impact or recognition?
Reflect on your results, then create a plan to get even better at sharing the stage... and act on it. Use this as a great opportunity to grow as a leader, engage and retain top talent, build strong partnerships, and drive to stellar outcomes.
Dr. Liz Bywater has been called a one-of-a-kind leadership expert. Working at the intersection of business and psychology, she brings together practical experience (advising top executives across the Fortune 500), advanced education (she’s earned a PhD in Psychology) and a dynamic personal style to inspire, engage and advise her clients.
Joseph Kashiwagi, PhD
Join expert instructors Dean, Jacob, and Issac Kashiwagi for this important and inspiring conference.
Kashiwagi Solution Model Inc. is the world expert in procuring services. For over 15 years KSM inc. has been consulting businesses and organizations all over the world to optimize the procurement process. Our purpose is to support and proliferate The Best Value Approach, a revolutionary way of procuring services. Any professional who wants to become an true expert in best value procurement needs to go through our professional network of trained experts.
Dean Kashiwagi, PhD
Emeritus Professor (ASU)
Director of CIBW117
Best Value Guru
Register here with promo code: IFMAM17
Isaac Kashiwagi, MS
Experts from the world over come to receive a unique education on procurement, risk management and project management that cannot be found elsewhere.
Contact Steve Pons at firstname.lastname@example.org
Register here now while space is still available.
A Lament for the Loss of Superlatives
Oh words, so long expressing things of highest value and deepest significance
Now relegated to describing common activities, banal events, and ordinary moments
I miss you. You have become adjectives meaning little more than “really good.”
I lament your loss, Awesome, and your passing, Amazing.
Awesome, you once meant “inspiring an overwhelming feeling of reverence, admiration, or fear.”
We used you to indicate what affected us to the marrow of our souls
What rendered us speechless with respect and veneration
What drove us to our knees in humble adoration.
Now you are used to describe a pizza.
You are relegated to the heap where Great, Wonderful, and Fantastic have long lain decomposing,
Along with their companions Incredible and Unbelievable.
Amazing, we used to employ you when we were speechless with wonder
When our hearts and minds were overcome with the ability to comprehend.
Today, we insert you in the places once occupied by “quite nice” and “delicious.”
I long to keep you to myself as you once were, but few will know your origins
How you were utilized for ages to convey great depth and powerful emotion.
I must turn to others not yet diminished, because I refuse
To speak of a good job as “awesome” or a living room makeover as “amazing.”
I am grateful that Astonishing, Breathtaking, and Stunning are still with us
Yet soon, with nearly all commonplace activities and items described in terms of surpassing greatness,
There will be nothing to denote the highest of emotions and experiences
And we will fall silent, indicating there are simply
No words to describe.
Sue Thompson is the editor of Facility, the immediate past president of the IFMA Delaware chapter, a past president of the CFC, and the Facilities Manager at AAA Club Alliance.
Contract management is a very complex issue with many moving parts. This session will not only explore the tactical elements of contract development but will move through successful contract transition. Most importantly, we will have a lively conversation regarding the emotional and intellectual aspects of contracting and how what we do as facility managers is indicative of the findings of Hart and Holmstrom. Teena will combine the strategic and tactical aspects of contract development and governance in an interactive and informative format.
News & Events
tony kubica and sara laforest
The Case for Emotional Intelligence (EQ)
Hogan Assessment Systems, a gold–standard performance prediction firm, defines EQ as the ability to perceive, control, and share one’s own and others’ emotions. Although available studies show different models of EQ, all agree that people with a high EQ perform better at work and display greater leadership potential.
John Mayer and Peter Salovey developed an EQ model based on a person’s ability to process and use information, while a trait model, developed by Petrides, measures EQ through self–perception. Most of us are familiar with Daniel Goleman’s groundbreaking 1996 bestseller, Emotional Intelligence, and his subsequent publication with Boyatzis and McKee, The Primal Leader: Unleashing the Power of Emotional Intelligence. Goleman developed a mixed model, combining both the ability and trait models. Recent studies of EQ underscore its importance. For example, in Emotional Intelligence 2.0, Bradberry and Greavas reported the following, based on studies conducted at Talent Smart, a provider of EQ tests:
EQ accounts for 58% of performance in all types of jobs
EQ is the single most significant predictor of performance in the workplace and the strongest driver of leadership and personal excellence
Only 36% of people tested are able to accurately identify their emotions as they happen
People with the highest intelligence (IQ) outperform those with average intelligence only 20% of the time.
In Leadership 2030, Vielmetter and Sell write about the growing shift from Egocentric leadership (old command–and–control style) to Altrocentric leadership (focus and concern for others and greater value). Their work indicates a call for leaders who are more expressive and collaborative, leaders who embody key attributes:
• inner strength • empathy • self–awareness
• maturity • integrity • meaning-making
Other studies point to the positive ROI of a leader with high EQ. As a result, some boards of directors are evaluating candidates for the position of CEO based not just on technical and business skills, but also the candidate’s EQ. The evidence is mounting. Our questions to you are: what is your EQ, and why does it matter in your leadership evolution?
Where Do You Stand?
Let’s start with the second question: why does it matter? The evidence is too overwhelming to be ignored: the studies mentioned above show that a high EQ leads to positive outcomes in the work environment.
So back to the first question: What is your EQ? Do you know?
Most of us think our EQ is much higher than those around us think. It’s important not to guess, but to know.
As consultants, we recommend two instruments to help you answer this question:
1. Hogan EQ Assessment
2. The Emotional Intelligence Appraisal by Talent Smart
The Hogan EQ Assessment
The Hogan EQ Assessment is new to the Hogan toolkit. The Assessment Report “provides a total EQ score, which reflects the respondents’ overall emotional intelligence.” It “provides feedback on a scale–by–scale basis, including discussion points, interpretive information, summaries of likely behaviors, and the pros and cons of scores as they concern leadership, teamwork, and employability.”
Hogan reports on six individual scales:
Hogan correlates a person’s score for each scale with how that person can be expected to behave. Emotional Intelligence Appraisal
When you purchase the book Emotional Intelligence 2.0, you receive access to the Emotional Intelligence Appraisal. This appraisal report is based on the following model:
• personal competence • self–awareness
• self–management • social competence
• social awareness • relationship management
As with the Hogan Assessment, you receive an overall Emotional Intelligence score. However, you also receive an overall score for personal competence (with subscores for self–awareness and self–management) and social competence (with subscores for social awareness and relationship management).
The appraisal also has descriptors of what your behavior looks like in each of the areas scored, along with a recommended EQ strategy. The strategies are discussed in depth in the book.
How to Interpret the Scales
Each instrument uses a different scale, but both do a good job describing what the scales represent. For example, in the Hogan Assessment, a scale range of 76–100 represents high EQ; a range of 0–25, a low EQ.
On the Talent Smart assessment, 90–100 represents what “A Strength to Be Capitalized on,” while 59 and below represents “A Concern You Must Address.”
EQ Can Be Improved
Evidence supports the theory that our intelligence quotient (IQ) and our personalities remain pretty much the same throughout our lives. However, evidence based on new findings by neuroscientists reveals that we have the ability to change our EQ. It improves with awareness and practice. This is encouraging, especially as EQ gains in importance as an important and sough- after leadership trait.
This is why it’s important to know your EQ. You can’t change what you don’t know needs to be changed. You especially can’t change if you believe you are doing just fine. Once you know you can improve, and need to improve, you care enough to take action.
As with any leadership trait, some will embrace EQ, some will ignore it, and some will deny it matters at all.
Benefits of EQ in a Changing Skills Gap Marketplace
As you build your leadership gravity (remember—leaders can only lead if they attract followers), think about your EQ. Honestly, no one likes working for a jerk. Especially as the skills required to perform work are becoming more and more sophisticated, no one likes working for someone who is a self–professed know-it-all or a micro-manager or someone who shows any of the other negative leadership traits that exist in organizations today.
A recent article in the Wall Street Journal (“Skills Shortage Means Many Jobs Go Begging,” July 10, 2014), reported that “33% of 848 small-business owners and chief executives said they had unfilled jobs openings in June because they couldn’t identify qualified applicants.” For some, this meant they couldn’t support the increasing demand for their products or services. In other words, even though they had the opportunity to grow and demand was there, they couldn’t take advantage of these opportunities because they couldn’t find people to fulfill them.
With demand for skills on the increase, businesses need to use every tool possible to attract and retain skilled talent. Because research indicates that employees leave bosses more than they leave organizations, one of those tools to be employed is effective managers, something the WSJ article noted is in short supply.
This represents an opportunity for you.
As a business owner or chief executive, you need to use every advantage available. Hiring and developing managers and leaders with high EQ, including yourself, is an advantage that needs to be cultivated. People want to work for good people and good organizations. Know your EQ and work to improve it.
The skills gap won’t close anytime soon. Using a combination of organizational gravity (for your organization) and leadership gravity (for you personally and for your managers/leaders) will position you and your organization as a leader in the talent acquisition and retention marketplace. Your reward will be the ability to support growth and meet customer/client rising demand.
Sara LaForest is an entrepreneur, consultant, coach, author, and instructor with broad experience in the private, not-for-profit, education, and government sectors. Her mission is to empower leaders to grow their businesses and create thriving workplace environments.
Tony Kubica, her former business partner, is now retired and serves as an adviser in her consulting practice.
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