The last two decades have brought to life many changes in the work environment and in organizations. While two decades ago, managers would say implicitly that the number one mission of organizations was marketing, for the past decade and a half, it has become evident that the focus has shifted and recently has become: Change. Driven by global transformative shifts, such as globalization, advanced and everchanging technology, significantly enhanced by Covid-19 constraints and post-pandemic trends, and last but not least, the rapid insertion of AI into every aspect of organizations, the number one mission of every organization that wants to survive in this turbulent and fluctuating world is constant change in light of the everchanging environment. Organizational change is not only a necessity, but it also has to be a state of mind. To successfully complete organizational change, the organization must always be one step ahead. This cannot be achieved without a well-planned change management process. In their article, McKinsey & Co. argue that only 35% of large-scale transformation efforts are successful (McKinsey & Company, 2022). Towers Watson go even further to claim that only 25% of change management initiatives are successful over the long term (Towers Watson, 2013).

The reasons for these poor statistics vary, as provided by various sources, and comprise the absence of key elements, such as: a clear and compelling vision for change; strong leadership; clear and effective communication; commitment and engagement; adaptability; manager-employee relations; employee involvement in the change process; supportive organizational culture; change management strategy; and resistance management. Most issues involve the human resource component.

To understand the reasons behind change processes going awry, one must delve into the core of employee resistance. As Issah (2018) stated, the change process involves emotions because nobody likes to surrender the comfort associated with the status quo. He emphasized that change always involves some form of emotion because it might appear as a threat to one’s identity, or to their competency or skills, and it also might challenge one’s self-confidence. It might also interfere with one’s much cherished sense of comfort, which change tends to disrupt, thus leading to feelings of anxiety, uncertainty or fear of the unknown (Issah, 2018).

As an organizational consultant, I strongly believe that the human resource component is one of the most valuable assets any organization possesses, and that is why it needs to be treated as such. Working with people, treating them with sensitivity and thoughtfulness, and creating among them a sense of commitment, motivation and engagement compels leaders and organizations to acknowledge, understand and utilize the feelings of others, as well as their own. Managers often pride themselves on being problem-fixers, adept at handling challenging situations. But not often do we see actual leaders who deal with people and get to the other side of those exact same situations, successfully, and with those people standing alongside them. To be clear, change management, done right, much like true leadership, is a process of properly handling people, rather than merely handling situations.

This is where Emotional Intelligence (EI) comes in. “EI involves the ability to recognize, determine and manage the emotions of one’s self, of others and of groups” (Ioannidou & Konstantikaki, 2008 cited by Veshne & Munshi, 2020). It is a “set of emotional and social skills that influence the way we perceive and express ourselves, develop and maintain social relationships, cope with challenges and use emotional information in an effective and meaningful way” (Mayer, Caruso & Salovey, 2004 cited by Issah, 2018).

Issah (2018) also highlights the different perspectives of emotional intelligence and their five components: self-awareness, self-regulation, self-motivation, empathy and social skill (Issah, 2018). Organizational Emotional Intelligence (OEI), however, is not merely the collective emotional intelligence of the people within the organization. OEI refers to the emotional intelligence of the organization itself as an independent organizational system. It is reflected in the organization’s declared identity and in the way its vision, mission staetement / purpose and values are communicated, translated and experienced. It is also expressed through organizational culture markers, through the way processes and methods of operation are designed and implemented and through the emotions these create among the people and stakeholders who interact with the organization. Therefore, OEI cannot be reduced to the individual emotional intelligence of specific people, even when those people hold central leadership or managerial roles.

Organizational Emotional Intelligence acknowledges the pivotal role emotions play in shaping workplace dynamics, organizational behavior, relationships and outcomes. In the context of organizational change, OEI is especially important because it helps organizations create clarity, preserve trust, support psychological safety and respond more intelligently to uncertainty, resistance and emotional tension. It highlights the organization’s capacity to maintain effective communication, enhance teamwork and respond adaptively to challenges and change.

However, OEI is not merely about creating a positive atmosphere. It is about building organizational systems that are emotionally intelligent, consistent and capable of sustaining trust, commitment and performance over time. It is reflected not only in cultural climate, but also in the organization’s processes and methods of operation, such as recruitment, onboarding, decision-making, promotion, internal communication and core work processes.

High OEI does not only help organizations respond to change; it also helps them identify emotional and systemic weaknesses before they become visible organizational problems. In this sense, OEI is not only a corrective capability, but also a preventive one. Organizations with higher OEI are better equipped to develop resilience, grit and agility, allowing them to adapt to change while preserving trust, commitment and organizational continuity.

Organizations most certainly can be taught and led to create an environment where employees and managers feel valued, supported and engaged, leading to higher levels of job satisfaction and commitment. Although this article focuses primarily on employees and managers in the context of organizational change, OEI also shapes the way other stakeholders experience and perceive the organization, including customers, vendors, investors and candidates. Veshne & Munshi (2020) claim that employee engagement is seen as a route to business success and improved business performance, by encouraging employee commitment, energy and productivity (Veshne & Munshi, 2020). EI in organizational leaders is a well-researched field, and its well-established connections to successful organizational outcomes, and to the results of organizational change, are unwavering. And for good reason. Issah (2018) states that emotionally intelligent leaders know and therefore create an environment of open communication, and effectively facilitate change and manage the emotions involved in it. It enables leaders to identify the talents needed to build a winning team, and the ability to overcome resistance to change. “Emotional intelligence is the most important ingredient contributing to increase moral, cooperation, teamwork, motivation and a positive work environment” (Foltin & Keller, 2012 cited by Issah, 2018).

This is where the distinction between EI and OEI becomes especially important. It asks whether the organization itself has created the core identity, culture, processes, checks and balances that allow emotionally intelligent conduct to remain stable over time, rather than depending solely on a specific leader, manager or temporary initiative. This distinction is especially important during organizational change, when uncertainty, stress and resistance can reveal whether emotional intelligence is truly embedded in the organization’s operating system.

Conclusion

Organizational Emotional Intelligence (OEI) is a transformative force that can propel organizations toward success. My exploration of this topic has strengthened my belief in its potential to enhance employee engagement, support employee retention and well-being, improve change management outcomes and cultivate a more resilient and adaptive organizational system. Embracing OEI as a systemic organizational capability is essential for cultivating resilience, grit, agility, innovation and sustained organizational success. It enables organizations not only to respond more effectively to change, but also to build the emotional, cultural and procedural foundations required to evolve continuously, preserve trust and Co-Craft Organizational Evolution.

References

Foltin, A., & Keller, R. (2012). Leading change with emotional intelligence. Nursing Management, 43, 20-25. doi:10.1097/01.

Ioannidou, F., & Konstantikaki, V. (2008). Empathy and emotional intelligence: What is it really about? International Journal of Caring Sciences, 1(3), 118.

Issah, M. (2018). Change leadership: The role of emotional intelligence. SAGE Open, 8(3), https://doi.org/10.1177/2158244018800910

Mayer, J. D., Caruso, D. R., & Salovey, P. (2004). Emotional intelligence: Theory, practice, and implications. Psychological Inquiry, 15, 197-215.

McKinsey & Company. (2022, November 28). The science behind transformations: Sustaining value after implementation. [Blog post].

Towers Watson. (2013, September 4). New study explores why change management fails — and how to (perhaps) succeed. [Blog post].

Veshne, N. A., & Munshi, M. M. (2020). Enhancing employee engagement through emotionally intelligent leaders. Srusti Management Review, 13(2), 32- 39.