5 Jun 2009

Emotional Intelligence at Ciba - BASF?

When browsing recently, we came across an article on how Ciba used 'Emotional Intelligence' to accelerate its 'change programme'.  Like many chemical companies, Ciba implemented a survival strategy which essentially was geared to slashing costs across the entire organisation.  So how do you do this with the least amount of pain?  Call in the consultants, I guess, and introduce a 'new term', emotional intelligence (EI).


There are many definitions of EI and the original development of the understanding of what it means and its importance in communication and inter-personal relationships is not questioned.  The definition given in Wikipedia is quite detailed, but to steal a few lines: 

Emotional Intelligence (EI), often measured as an Emotional Intelligence Quotient (EQ), is a term that describes the ability, capacity, skill or (in the case of the trait EI model) a self-perceived ability, to identify, assess, and manage the emotions of one's self, of others, and of groups[1].

What does all of this EI stuff mean?  It was tempting to write an essay and point out where big companies fail in recognising that the company is made up of people who are intelligent, have different abilities (real and perceived) and are able to perceive, understand and use emotion (positively and in a manipulative way) - we will avoid the essay, but conclude that if you harness the combined assets of the individuals you have a great company!  It simply distils into the following:
  1. Understand
  2. Communicate
  3. Listen  
  4. Involve
  5. Decide
Sure, in these tough times, decisions have to be made but making them in the board room and then asking middle management to implement them may not be the best soultion, unless you don't give a damn about the individuals that make up the company.  The Alan Sugar approach popularised in the TV show, 'Apprentice', seems to lack any Emotional Intelligence and portrays a very old fashioned way to run a company.  If large companies (and SMEs) are to survive in the future, particularly in the developed world, a change of approach is needed - more of this 'Emotional Intelligence'.  In our experience, one advantage that SMEs have is that they are more emotionally intelligent.

The article which started this blog off concerned an approach used by Ciba, a Swiss company with a relatively multi-national outlook.  Ciba has now been acquired by BASF, a giant German company with a reputation for having an autocratic style of managememt (Do it!).  Does BASF have emotional intelligence?  Let us know.


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