About Emotional Capital

What is Emotional Capital?

Today we’re working with a new balance sheet. Knowledge, or intellectual capital has been and is the highly valued stock in most businesses. It’s what businesses know and use to create products or solve problems and ultimately create wealth. Yet knowledge is only the first of two important assets in business. The second is emotional capital – the feelings, beliefs, perceptions and values that people hold when they engage with any business. It’s the emotional assets in your organization that determine whether or not people will work well for you, buy from you, employ you and enter into business with you.

Emotional Capital - Three Core Elements:

1. External Emotional Capital - the value of the feelings and perceptions held by the customer and the external stakeholder towards your business. The only way to create real profit is to attract the emotional rather than the rational customer by appealing to his or her feelings and imagination. Customers want to buy from organizations they like and who are like them. This creates brand value and goodwill and results in repeat sales through customer loyalty, lifetime relationships and referrals. In other words, the brand creates trust and recognition and is a promise and an emotional contract with each customer.

2. Internal Emotional Capital -the value of the emotional commitments held in the hearts of the people within your business. It can be is seen in the energy and enthusiasm that people bring to work to create products and solve problems. Every relationship that your business has with everyone it touches is an asset and an investment. To build emotional wealth you must treat your people as investors because that is what they are — intellectual and emotional investors. Every day they bring their heads and hearts to work. And if they don’t, you won’t be in business very long.

3. Intra-personal Emotional Capital - the level of positive, focused energy that you invest at work and in your personal life. As a leader, you will inspire or demoralize others first by how effectively you manage your own emotional energy and, second, by how well you mobilize, focus and renew the collective energy of the people you lead.

Why Emotional Capital Matters

First, emotional capital is valuable because it creates strong relationships that enable people to achieve effective collective outcomes. Research shows that the key factors driving job satisfaction are relationships with managers, company culture, advancement opportunities, and opportunities to work with others. Employees are simply more and more unwilling to stay in an unhappy work environment. Therefore, leaders who create cultures of passionate people maximize the productive potential of the human capital in the business.

Second, everybody knows that attracting and retaining talented people is the most important strategic issue for every company today and tomorrow. The most competitive market of the future is the labor market. To attract the most talented people, companies and organizations must focus on building exceptional workplace cultures where passionate people can innovate and drive change.

How Do You Build Emotional Capital

In the last ten years, the most sensational strategy for building emotional capital has been to focus on developing emotional intelligence. Emotional intelligence is an indispensable set of social and emotional competencies for leveraging knowledge and emotions to drive positive change and business success.

Emotional Capital Report (ECR)

There are many ways of gaining feedback on performance, but by far the most credible and compelling way is to benchmark emotional and social competencies and provide feedback using high-quality psychometric assessment tools. Comparing our skills against a well-established benchmark of peer performance clarifies where we currently stand and has the effect of engaging our internal drive to improve.

Rigorous scientific research has identified ten emotional skills that drive leadership performance and separate great leaders from the rest. These ten skills can now be accurately measured by the Emotional Capital Report (ECR)– the world’s first scientifically developed psychometric for measuring emotional intelligence and leadership. The ECR™ offers a unique assessment of the components of emotional intelligence that are empirically linked to leadership performance and provides a wealth of coaching strategies tailored to each individual’s development needs.


Research has shown that the value of learning is maintained, if not greatly enhanced, when people receive targeted coaching support. By far the most powerful programs have been those that combine seven elements: goal setting, feedback, skills practice, supervision, journaling, constant evaluation and end-results.

Cost-effective online coaching platforms that cover these seven elements can provide the critical follow-up support that is often missing in traditional leadership programs. RocheMartin’s online learning platform, SmartCoach successfully integrates each of the elements described in the research into a dynamic interactive leadership program that can be delivered cost- effectively across an organization. Each SmartCoach module is packed with psychological insights and practical strategies and provides the clearest blueprint yet for systematically building emotional intelligence and leadership skills.

Emotional Capital Delivers Results

A large telecommunications client who recently completed our emotional intelligence training program reported a 19% improvement in leadership performance, a 6% improvement in employee engagement, and a 6% improvement in customer focus scores in six months.

At RocheMartin we believe that the primary role of leadership is create emotional wealth for competitive advantage. It’s knowledge and talent driven by emotional skills that are the foundation for growing an exceptional business today. Nothing in business is more rewarding or exciting!

Want To Learn More About Emotional Capital?

Here are a few resources to help you understand Emotional Capital in more detail and how it can help drive success for both you and your organisation.

  • Technical paper: Get the free download for an overview of the research behind the Emotional Capital model and the Emotional Capital Report (ECR).
  • Emotional Capitalists: The New Leaders: Purchase a copy of Dr Martyn Newman's best-selling book for a practical and easy to read introduction to emotional capital and how you can build it.
  • Technical manual: Buy a copy of our comprehensive technical manual, with over 140 pages including the theoretical foundations of emotional capital, a detailed description of the Emotional Capital Report (ECR) and how it was created, the psychometric properties of the ECR, and a guide to scoring and interpretation.
  • Certification courses: Find out more about our 3 day certification courses (and 2-day intensive courses). Learn how to apply the ECR, coach others, and build emotional capital in your organisation.

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