Why EQ matters more than IQ when you're leading a team in tech
“Talent is the driving force behind tech.” Or so we are told. Yes, someone with the right skillset is critical when it comes to scaling up a startup. But, and I can’t stress this enough, so is their mindset. And that mindset is shaped by you. The leader. The co-founder or the CEO.
Emotional Intelligence (EQ) – the ability to positively understand, use, and manage your emotions to relieve stress, communicate effectively, empathise with others, overcome challenges and defuse conflict – is crucial in this shaping process. I firmly believe that a company is a mirror of its leadership team, and that whatever you project out you get back. Even more so when a team is small. If there was ever a time to lead by example and with empathy, startup culture is it.
Here are some principles that I lead by as the Co-Founder of Fiat Republic.
Ownership, not blame
Ownership and blame are two very different things. The former is about understanding where people are at and where they want to be within the plan of the company. Our leadership team always leads by example, and we share our emotions and experiences to inspire others. This includes recognising and learning from our mistakes. I believe this approach creates a culture of responsibility without fear of blame or failure. By encouraging ownership, we empower our team to take initiative and learn from both successes and setbacks. They own that process, which eliminates the need for anyone else to point a finger at them should things go wrong. The best lessons learned are the ones you learn yourself.
Facilitate communication
I work in an industry which has a very defined tech and non-tech side. This can be a problem if you keep the wall up. To overcome this, we've brought developers into sales calls and had product team presentations on platform evolution. It's about having transparent conversations regularly. We believe in bridging communication gaps between technical and non-technical teams to ensure everyone understands our goals and progress, which creates a more cohesive work environment. This open dialogue helps us align our efforts and drive innovation across all departments. Letting collaborators talk to customers directly enables them to hear feedback first hand and to develop empathy. It also shows our customers that there are real people that are not only very talented but also that care about them in the background. It’s a win-win situation within the organisation and beyond.
Focus on signal, not noise
Tech – and particularly payments – is sometimes an industry plagued by a short-term vision in pursuit of quick wins. The culture we instil at Fiat Republic is that we are building a long-term product, so the noise isn't there. We stay close to clients and regulations, focusing on what we need to do to execute and fulfil their needs. This approach helps us filter out market volatility and address regulatory challenges as they come, keeping our team focused on our core mission. By prioritising the signal over noise, we maintain clarity and direction in our work, even amidst industry turbulence. This, in turn, creates a more stable and happy team.
Act fast on feedback
It’s one thing to encourage feedback, but another to act on it. I'm brutally honest and known for acting very fast on feedback about my ways of working as well as the ways of working in other parts of the organisation. Being able to receive feedback as well as continuously learn and improve is an important part of the skills I’m looking for when hiring. Feedback should be taken seriously – this is where you can get a 'quick win'; earning the respect of your teams, and demonstrating that you both care about their welfare and enabling them to do their best work. By responding promptly to input, we create a culture of continuous improvement and show that every team member's voice matters. This swift action on feedback fosters trust and demonstrates our commitment to growth and adaptation.
These principles may seem simple, but they require consistent effort and a high degree of emotional intelligence to implement effectively. As you might have noticed, I haven’t at all mentioned my experience across fintech and payments. Nor my qualifications. That's because, in the day-to-day operations of a tech startup, you can't rely solely on these. It's not about your years of experience or qualifications – it's about your ability to connect with and motivate your team. You must lean into your EQ – your empathy and ability to listen and act – to win in tech.
Personal development is also extremely important as a leader. I have coaches who allow me to take a step back and reflect. When you are in a startup, it can prove difficult to think and see the big picture. You don't have the time. Personal development, when done properly, is the most powerful thing you can do for yourself and your company. It enhances your EQ, helping you become more self-aware, empathetic, and better at managing relationships; all crucial skills for effective leadership.
As leaders in the tech industry, we must constantly ask ourselves: Are we fostering an environment where EQ is valued as much as technical skills? Are we investing in our emotional intelligence as much as we invest in our products? The future of our companies – and the tech industry as a whole – may well depend on how accountable we are.
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.