For the last 100 years or so, the gold standard in the measurement of human intelligence was the standardised IQ (Intelligence Quotient) test. Though the tests have changed over the years, they are essentially a measure of analytical ability and logical thinking. Then, in the mid 1980’s the concept of emotional intelligence, referring to a person’s capacity to intuit one’s own- and other people’s emotions, started creeping into scientific literature. Businesses are a lot less complex than human beings, but I’d like to think that they also require the right balance of these “intelligences” to be successful.
The language of business is economics. At an individual business (or industry) scale microeconomic concepts like “demand and supply” and the “law of diminishing returns” hold sway. At larger scales of countries’ economies and governmental functions, macroeconomic principles like monetary- or fiscal policy start adding factors. But economics is a “social science”. This means that, while accurate measurements can be made, the deductions made from those measurements often include a fair bit of gut feel, guesswork and assumption built up on previous empirical experience. (Apologies to any economists out there who are offended by this generalisation).
Over the next few blogs, I’ll consider the “IQ” and “EQ” components of some of the major functions of any business. I’m hoping that some people will learn the importance of gathering some information and that others might learn how to read into information once it is gathered.