Strategic Exchange
Enhancing leadership and effective board governance
February 13, 2026 by Peter Muldowney

In today’s complex and rapidly changing environment, technical skills and intellectual horsepower, while important, are no longer enough to guarantee leadership success. The world is filled with highly technical, highly educated professionals. What ultimately differentiates exceptional leaders is emotional intelligence, which is the ability to recognize, understand and manage emotions, both your own and those of others.
At its core, emotional intelligence shapes how leaders make decisions, how they navigate conflict, how they build trust and, ultimately, how effectively they lead teams, organizations and boards.
Understanding emotional intelligence
Emotional intelligence, or emotional quotient (EQ), refers to the capacity to tune into your emotions, understand how they influence your actions and channel them constructively. Unlike our intelligence quotient (IQ), which tends to be stable through lifetime, EQ is not fixed. It can be strengthened at any stage of life, making it one of the most powerful tools leaders can actively develop.
Leading EQ scholar Daniel Goleman describes emotional intelligence as the foundation of great leadership because, as he notes, “great leadership works through emotions.” Leaders who develop EQ unlock greater self-awareness, build stronger relationships and create cultures of trust, each of which is essential in high-stakes environments such as board governance.
The brain science behind EQ
EQ may feel abstract, but its foundation lies in neuroscience. All sensory inputs pass through the brain stem, then the limbic system, which is the emotional center of the brain, before finally reaching the prefrontal cortex, the rational part of the brain.
This sequence means we feel before we think. Emotions trigger physiological responses long before we consciously interpret what is happening. Recognizing this dynamic helps you to understand why strong emotional reactions can derail decision-making, and why learning to regulate those reactions is crucial for strong leadership and developing relationships.
Neuroscience also reveals that emotions are not hardwired. They are predictions our brain makes based on past experience. Just as we can learn a new skill, we can reshape our emotional responses by exposing ourselves to new experiences, practicing reflection and intentionally building healthier habits.
The four domains of emotional intelligence
Emotional intelligence consists of four interconnected domains. Together, they form a blueprint for stronger leadership:
1. Self-awareness
Self-awareness is the ability to recognize your emotions in real time and understand how they shape your perceptions, behaviour and impulses. It is the foundation of EQ since to manage how you react, you first need to recognize and name the emotion.
Physical cues often appear before conscious recognition, such as tightened muscles, racing heart, warm cheeks. In these situations, asking “What am I feeling?” activates the rational brain, which can give you greater control in managing the emotion.
Emotions are not obstacles; they are data to be interpreted. Anger, fear, happiness, surprise, sadness, and disgust each carry a message. Leaders who learn to interpret these signals make clearer, more thoughtful decisions.
2. Self-management
Once you can identify emotions, the goal is to manage them. Self-management means thinking before acting, especially in moments of stress, frustration or anxiety.
Several techniques help build this skill:
- Label the emotion. Naming what you feel reduces its intensity by calming the emotional limbic system.
- A.T. – Pause, Acknowledge, Think. This momentary slowdown re-engages the rational prefrontal cortex.
- Even brief reflection helps the brain process experiences and adjust behaviour. At its simplest, reflection is about careful thought, providing the brain an opportunity to pause amid chaos and interpret what occurred.
- A.I.T. – Why Am I Talking? This simple question encourages thoughtful contributions, especially in board settings. By choosing to speak up only when you genuinely have something valuable to say or original to contribute, will earn greater respect and influence among peers.
Changing emotional habits can feel awkward, like crossing your arms the “wrong way,” but with repetition, new patterns take hold. This is the essence of neuroplasticity, the brain’s ability to reshape itself through consistent practice.
3. Social awareness
Social awareness focuses on understanding the emotions and behaviours of others. Tools and approaches to enhance social awareness include:
- Listening and observing. This implies not talking, not anticipating what others will say and not planning your response while they are speaking. While perhaps obvious in theory, many of us are guilty of not truly listening when someone is talking.
- The ability to look beneath the surface and understand what someone may be feeling or experiencing.
- Identifying emotions. This can be done by observing verbal tone and body language.
- I.T.S. – Stay In Their Story. This technique is a reminder to resist the urge to jump in with your own experiences and instead keep the focus on the speaker.
Behaviour is like an iceberg where the visible part is only a fraction of what is really happening. By paying attention to what lies below the surface, leaders strengthen empathy and can create more meaningful human connections.
Social awareness also requires careful management of body language, since it can reveal how you are feeling, such as rolling your eyes or displaying signs of boredom. However, body language can be also be misleading. A person crossing their arms may not be disengaged, they might simply be cold or self-soothing.
It is also important to appreciate there are those whose neurological differences mean their behaviour and social interaction varies from what may be considered the “norm.” When neurodiversity and emotional intelligence intersect, the challenges can intensify, whereby neurodivergent individuals may be unfairly perceived due to little expression or different social-interaction style.
With the increased use of virtual environments for meetings, nonverbal cues are limited. Therefore, it is even more important to make intentional pauses and invitations for input in these types of meeting environments.
4. Relationship management
Relationship management is the ability to communicate effectively, navigate conflict, collaborate and build strong interpersonal connections.
Key behaviours that support strong relationships include:
- Showing genuine interest in others
- Giving full attention during discussions
- Using eye contact to show engagement
- Managing conflict calmly and constructively
- Demonstrating consistency and reliability
For board members, relationship management has a direct impact on governance effectiveness. Positive interactions strengthen trust, while poor communication, avoidance or inconsistency erode it.
EQ and board governance
Boards operate in environments of high complexity, competing priorities and diverse personalities. Technical expertise is critical, but EQ is the glue that solidifies effective decision-making.
High EQ boards are able to:
- Navigate difficult conversations with respect
- Provide a safe environment so members speak openly
- Make decisions based on clarity rather than emotion
- Strengthen collaboration and avoid dysfunctional conflict
- Maintain trust through consistent behaviour and accountability
Emotional intelligence elevates both individual leadership and collective board performance.
Trust as a currency of effective boards
Every interaction with colleagues or board members is a trust transaction, according to Pamela Barnum, a specialist on the topic of trust and relationships. Trust accumulates slowly, like compound interest for investments. But trust can also erode, like how a bad debt can adversely impact an investment.
A helpful metaphor is the trust ledger, where behaviours represent deposits or withdrawals:
- Following through on commitments: deposit
- Taking responsibility for mistakes: deposit
- Missing deadlines without communicating: withdrawal
- Withholding information: withdrawal
- Supporting a colleague in a difficult moment: deposit
No board needs to be perfect. But every board needs a positive net balance to be effective. Healthy governance depends on identifying “trust leaks” early and addressing them with honesty and intention.
Invest in EQ
Emotional intelligence is not a luxury; it is a leadership imperative. It determines how effectively leaders understand themselves, connect with others, resolve conflict and build trust. Unlike IQ, EQ can be learned, practiced and strengthened at any stage of life.
For boards, EQ enhances governance, improves decision-making and creates a trust-filled environment required for healthy, high-performing leadership teams.
By investing in emotional intelligence, both individually and collectively, boards position themselves to govern with clarity, compassion and integrity.