Ad Altius Advisors | The New Superpower: Psychological Fitness is the New Secret Strength of a Business

Psychological fitness is no longer a fringe concept in business; it’s a vital organizational concern and a determining factor in the high-stakes arena of modern leadership.

In a world where billions of dollars can rely on split-second decisions, psychological strength has become the cornerstone of executive success. It’s the armor that shields against the unforeseen and enables leaders to guide their organizations through crisis, while preserving or even enhancing value.  The dark days of the pandemic has brought about a realization in boardrooms that the techniques used in the military, in sports, and even in psychotherapy can enhance executive performance, with direct impact on bottom lines.

We’re witnessing an evolution of leadership, where diversity is celebrated and various styles recognized as valuable assets, where leaders must be equipped not merely with acumen but also with psychological mastery, trained to thrive in complexity and chaos. This shift transcends mere business; it’s a societal metamorphosis where conventional world of male-dominated leadership is giving way to a broader, richer tapestry of insight and approach.

Business is of course about numbers and bottom lines; but what we’re seeing today is that psychological fitness of leaders is a significant determinant those bottom lines. Leaders are now expected to be not only masters of commerce but also masters of consciousness, weaving threads of human understanding through the rigid framework of finance.

In our firm, we are proponents of this trend. In the past, much of our consultative work centered on resolving problems, such as underperforming executive teams, tensions in the boardroom, and the like. But since the pandemic, the bulk of our engagements have been focused on psychological fitness that is tied to specific business objectives.

We hold that mental readiness is like a muscle. You have to exercise it, build it, and know when to deploy it. In boardrooms across the globe, practices once reserved for psychotherapy are now being enlisted to develop those muscles. In the past, any mention of mental fitness was stigmatized and seen as a sign of weakness. Today, businesses around the world invest heavily in this area, and participation is seen as a perk for top executives. Techniques that shaped Olympic champions and military strategists are being adapted for the corporate arena.

As a psychologist, I applaud these trends, because businesses are comprised of human beings, and securing optimal human functioning ultimately ensures optimal business performance. In my firm’s practice, we were  called upon to work with top executives in the darkest of times—the depths of the pandemic – and the focus was, plainly speaking, helping top leaders keep their heads on straight when no one knew when the crisis would end.  Now that those dark days are behind us, we’re seeing a continued interest in enhancing mental fortitude and psychological agility among top executives and even board members.  There’s a growing realization that the strengths that help navigate a crisis can be applied in more “normal” times as well, and to the betterment of the business, its culture and its bottom line.

In recent engagements, our firm has been called upon to deploy a range of  strategies that reflect this new paradigm of leadership readiness. This new approach draws on psychological principles once exclusive to therapeutic environments but now fundamental to modern business success. We have identified three core areas—Emotional Intelligence (EQ), Resilience Training, and Mindfulness—that are playing pivotal roles in this transformation. In the sections that follow, I explore each of these areas, shedding light on how we’ve applied them in contemporary corporate settings.

1. Emotional Intelligence (EQ): As a graduate student, I had the privilege of studying under Peter Salovey, who coined the phrase “emotional intelligence.”  Ever since, it has taken hold in business, and its real-world applications continue to expand and evolve. Organizations know that modern leaders must possess a keen understanding of emotions—their own and those of others. High EQ allows leaders to navigate intricate interpersonal relationships, foster collaboration, and create a more humane and productive work environment. We’ve worked with leading companies around the world who are recognizing the value of EQ, and have tailored their practices to leverage its potential.

Delta Air Lines’ approach to emotional intelligence is rooted in their conflict resolution training. Recognizing that empathy and self-awareness are critical in tense or conflict-laden situations, Delta offers training to leaders that centers on understanding emotions and responding to them thoughtfully. By helping leaders recognize their emotional triggers and those of others, the training enables more constructive and compassionate interactions with colleagues.  Since our work with Delta, lead executives have extended this training to staff in other areas of the business, with direct impact on customers.  This investment in EQ has led to a noticeable improvement in customer relations and internal collaboration within the company.

General Electric has taken the integration of EQ into leadership development to a strategic level. Their management development program actively incorporates training to help leaders identify and understand their emotional patterns and those of others. GE’s leaders are taught to utilize emotional intelligence in their decision-making processes, team-building strategies, and conflict resolution, creating a strong, resilient organizational culture. By empowering leaders with emotional intelligence skills, GE fosters an environment where empathy, self-awareness, and interpersonal effectiveness are celebrated, translating into better business outcomes.

Johnson & Johnson has creatively implemented EQ into its hiring practices, especially for critical leadership roles. Understanding that emotional intelligence can be a strong predictor of collaboration and adaptability, the company evaluates candidates’ EQ as a part of the hiring process. They gauge abilities such as empathy, self-regulation, and relationship management, aiming to ensure alignment with the company’s values and team dynamics. This approach has led to more effective and harmonious leadership teams, better suited to navigating the complexities of the healthcare industry.

These examples demonstrate that emotional intelligence is not a mere theoretical construct or a trendy buzzword. These companies have proactively used EQ as a tool for tangible improvement in various aspects of their organizations. From customer service to leadership development and hiring practices, EQ has become a central component of corporate success, underscoring its significance in modern business leadership.

2. Resilience Training

Resilience Training is emerging as a crucial component in modern business leadership. The  COVID-19 pandemic has taught companies that cultivating resilience in leadership is vital, for it is resilience that equips individuals to bounce back from setbacks, adapt to change, and keep going in the face of adversity.  My firm’s stand is that resilience not only can be learned, but it can also be taught.  Several leading organizations have adopted our position, and have implemented resilience training programs with remarkable success.

IBM’s proactive approach to resilience has seen the development of extensive training and support resources for leaders. In their Resilience Training Program, they foster resilience by focusing on adaptability, stress management, and mental well-being. By teaching leaders specific techniques to handle pressure, setbacks, and personal challenges, IBM has created a culture that thrives on challenges rather than buckling under them. This focus on resilience was particularly notable during the pandemic, helping the company navigate the uncertainties of remote work and market disruptions.

UnitedHealth Group has instituted a comprehensive Emotional Resilience initiative that aims to fortify the emotional well-being of leaders. Recognizing that resilience is tied to emotional strength, the initiative focuses on imparting skills to deal with stress, anxiety, and burnout, all crucial in healthcare settings. As with our EQ work with Delta, UnitedHealth’s leadership has  extended resilience training throughout its organization through workshops, coaching, and other resources, teaching specific coping strategies that foster resilience. This has contributed to a more engaged, emotionally stable workforce, better equipped to handle the demanding healthcare environment.

Ford Motor Company has also adopted a version of our resilience program, incorporating it into their corporate culture. Their focus on resilience training has helped leaders develop coping strategies for stress and personal challenges, contributing to enhanced well-being, and notably,  improved business performance. The program’s investments in resilience training has led to significant improvement in productivity, particularly in down-cycles.

These examples illustrate how resilience is being adapted across different industries as a core principle.  By making resilience training part of their business, organizations are not only preparing themselves to weather external challenges, but also cultivating leadership teams that are adept at handling internal pressures, and converting them into business successes and increased performance.

3. Mindfulness: Mindfulness, originating from ancient spiritual traditions, has found an impressive footing in the corporate landscape. It has become more than just a practice of staying present; it’s a philosophy enabling executives to lead with empathy, focus, and resilience.

Salesforce, a global tech giant, has been a great ally of ours in adopting mindfulness into its culture. CEO Marc Benioff, a strong proponent of mindfulness, integrated mindfulness zones in the company’s  new San Francisco headquarters. There is a  dedicated meditation room on every floor, allowing employees space to practice mindfulness and meditation,  encouraging employees to engage in quiet reflection or meditation. The impact was immediate, with reports of enhanced creativity, focus, and collaboration among the staff. In an environment known for high stress, these mindfulness zones became an oasis, fostering a culture of well-being and innovation. The company also hosts mindfulness events and invited guest speakers on the subject to encourage these practices within its top leadership team.

The emphasis on mindfulness aligns with Salesforce’s broader commitment to the well-being of its employees and has been cited as part of the company’s unique approach to leadership and corporate culture. It’s an example of a trend among some tech companies to invest in the mental well-being of their employees as a means to enhance creativity, productivity, and overall job satisfaction.

Google’s “Search Inside Yourself” program is another example, and it integrates mindfulness with emotional intelligence practices.  Leaders engage in activities ranging from meditation to journaling, aiming to increase self-awareness and emotional regulation. A rigorous outside evaluation of the program showed a significant increase in productivity, well-being, and leadership skills among the participants, transforming how Google approached leadership development.

Additionally, General Mills has embedded mindfulness into its leadership training. Executives participate in week-long retreats, practicing mindfulness exercises and learning to apply them to their work. The impact was a more empathetic and self-aware leadership team, influencing the organizational culture positively and leading to an increase in retention and satisfaction rates.

These examples of emotional intelligence, resilience training, and mindfulness within the modern business environment illustrates a significant shift in leadership thinking. Top corporations such as Google, Salesforce, Delta, and J&J have employed these principles, demonstrating a measurable impact on organizational culture and financial performance.

Emotional intelligence has become a central tool for managing interpersonal dynamics; resilience training has proven vital for adapting to uncertainty and adversity; mindfulness has emerged as a method for enhancing focus and empathy within a demanding corporate landscape.

The application of these principles within the corporate context is neither trend nor ornamentation, but instead a strategic evolutionary response to an increasingly complex global business environment. This shift towards psychological fitness among leaders is not an abandonment of traditional business acumen but an enhancement, with direct ties to organizational success and the bottom line.

The recognition of psychological fitness as a core business competency represents a powerful advancement in leadership strategy, one that aligns human well-being with organizational performance, ensuring more resilient and adaptive corporations in a complex and ever-changing global market.

Author Thomas Brown, Founder of Ad Altius Advisors

Compliments of Ad Altius Advisors – a member of the EACCNY.