The Importance of Emotion in Business Success

Many professionals can relate to the experience of being labeled as “too emotional” in the workplace, where data often dominates decision-making and logic prevails over feelings.

However, I firmly believe that emotion plays a crucial role in the success of any business. While understanding the metrics is vital, without the ability to engage potential customers, motivate employees, or inspire a shared vision, your efforts may fall flat.

Emotion is often a topic we overlook, yet the correct amount of emotional engagement is key to motivating employees. It fosters pride, happiness, and excitement, promotes teamwork, and enables the celebration of accomplishments.

For executives, failing to acknowledge their emotional influences can be a cognitive distortion—one that arises from a societal conditioning that encourages a stoic, logical persona. I know a CEO who believes he operates solely on data, dismissing emotion entirely. This mindset can limit effective communication and connection with the team, and it is a more widespread issue than one might expect.

In traditional rhetoric, the elements of persuasion include ethos, logos, and pathos, appealing to authority, logic, and emotion. The best leaders in any sector effectively blend these elements, so why do we often approach business from a purely logical standpoint? As a curious CEO, I seek answers and learn from the diverse viewpoints of others. While spreadsheets provide valuable data, rich insights often come from interpersonal interactions—something the data-centric professionals should acknowledge.

At Gravita, we have pursued numerous acquisitions in recent years. Throughout these negotiations, while I’m attentive to financial metrics like gross margins, profitability, and growth forecasts, I also keenly observe the dynamics among the individuals present. Their reactions to challenging inquiries, as well as nonverbal cues from more reserved participants, are essential to understanding the emotional landscape of discussions. Ignoring this emotional layer can obscure critical insights, leading to significant missteps.

Recognizing and navigating emotions in the workplace is vital for everyone, not just leaders. A common misinterpretation involves tears, especially with women. Tears in a professional setting often indicate deep frustration or feelings of injustice, rather than simple sadness. Misinterpreting these emotions as weakness can lead to serious errors in judgment.

So, what’s the best way to respond if someone becomes emotional at work? A brief pause and a glass of water can often help; it allows time for a reset before moving forward. This is not a moment to retreat but to delve deeper into the emotional undercurrents that are important to address.

In my role as CEO of an accounting firm, it is easy to assume that our teams are heavily numbers-oriented and less inclined to embrace emotional appeals. While it may be true that accountants tend to show less emotion than those in the dynamic startup environment where I began my career, that doesn’t mean a uniform approach is necessary. The way people express their feelings varies significantly, yet it’s equally important. Anyone who insists that business decisions rely exclusively on numeric data is misguided. In fact, in sectors like finance, where emotional dynamics are often underutilized, effectively harnessing emotions could provide a competitive advantage.

Across the business landscape, there’s a pervasive fixation on data and logical reasoning, yet these elements only acquire power when framed within the human context. Many failures stem from a hyper-focus on analytics that ignores cultural dynamics, leading to dangerous blind spots that can result in organizational breakdowns. A narrow emphasis on the “what” can easily derail the “how” of operations.

It’s evident that emotional intelligence is increasingly recognized in business settings. Subtle changes, like the use of first names among executives and open office layouts, reflect a growing comfort with emotional expression. It’s time for organizations to embrace this evolution. One of my guiding principles is to seek broad input before making a decision, which is only possible in environments where people feel safe to voice their genuine thoughts and emotions.

Of course, toxic behaviors such as shouting or passive-aggressive interactions have no role in contemporary business. The wise guideline of pausing to breathe and reflect before reacting to negative emotions is still relevant.

I understand the hesitance many leaders have towards emotional expression; appearing overly soft can be a concern. Yet, showcasing emotion can be a commanding force—it illustrates humanity and authenticity in leadership.

Caroline Plumb serves as the CEO of Gravita, a firm specializing in taxation, accountancy, and business advisory services.

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