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Genos EI has a Direct Effect on Sales Performance
                                       Summary
 Genos Whitepaper #3                   Emotional intelligence (EI) may be argued to facilitate higher sales performance in a range of
                                       sales-based industries. In this whitepaper, the results associated with an empirical investigation
                                       based on a sample of 33 pharmaceuticals sales people are reported. It was found that self-
 October 21, 2008                      reported Genos EI was associated with sales performance directly, independently of the effects
                                       of other sales performance indicators such as number of sales calls, length of sales calls, and
                                       days on territory. However, Genos EI was also indirectly associated with sales performance
                                       through its effects on number of long calls, which in turn affected sales performance positively.
                                       Thus, it may be suggested that Genos EI impacts sales performance positively both directly and
                                       indirectly (i.e., by building rapport and achieving longer sales calls).


                                       Introduction
                                               Why do some               client’s unique needs.           beyond the effects of
                                       employees achieve higher          These types of sales             the number and length
 Special points of interest:
                                       levels of sales than              related behaviours are all       of ‘sales calls’ a sales
 • Genos EI predicts sales
                                       others? No doubt, the             factors likely to lead to        person makes? If this
   performance.
                                       complete answer to such           greater          sales           proved to be the case,
 • The number of long-calls a sales    a question would involve          performance.                     empirically, it could then
   person makes predicts sales
                                       a large number of                                                  be said that EI has a
   performance.                                                                   In light of the
                                       interacting     variables,                                         direct effect on sales
                                                                         above, the observation of
 • Genos EI predicts the number of     several of which would be                                          performance. However, it
                                                                         a positive association
   long-calls a sales person           psychological in nature.                                           would also be interesting
                                                                         between EI and sales
   makes.
                                                                                                          to observe that EI had an
                                                A   significant          performance would be
 • Genos EI predicts sales                                                                                indirect effect on sales
                                       positive factor likely to         expected. However, it may
   performance, above and beyond
                                                                                                          performance ‘through’ the
                                       explain      meaningful           be asked whether EI can
   the effect of long-calls on sales
                                                                                                          number and/or length of
                                       individual differences in         predict sales performance,
   performance.
                                                                                                          sales calls a salesperson
                                       sales      success       is       independently of more
                                                                                                          makes.
                                       Emotional Intelligence            traditional sales indicators,
                                       (EI), as EI would likely be       such as the number of                     To    test   the
                                       associated with factors           sales calls made and the         possibility that EI would
                                       such as building rapport          length of time talking to        predict sales performance
                                       with a client effectively,        clients per sales call.          directly, Genos conducted
                                       understanding a client’s                                           a study with a group of
                                                                                 Thus,        the
                                       unique product or service                                          sales employees (N=33)
                                                                         question addressed in this
                                       needs, and aligning the                                            employed by a large,
                                                                         whitepaper is: Can EI
                                       value of the product or                                            multi-national
                                                                         predict         sales
                                       service they sell with that                                        pharmaceutical company.
                                                                         performance above and


                                       Methodology
                                               The 33 sales             of days out of the office         of ‘sales calls’ to clients of
                                       employees involved in the        with the purpose of               more than 5 minutes
                                       study completed a self-          selling); Short-Calls (i.e.,      duration). Finally, sales
                                       report version of Genos          the average monthly               performance              was
                                       EI. Further, data on three       number of ‘sales calls’ to        represented        by     the
                                       sales related activities         clients of less than 5            monthly average amount
                                       were also collected: Days        minutes duration); and            of revenue generated by
                                       on Territory (i.e., the          Long-Calls (i.e., the             each respective sales
                                       average monthly number           average monthly number            employee.
© Genos Pty Ltd                                                                                                                        1
Genos Whitepaper #3
                                                                                           GENOS INDUSTRY WHITE PAPER
 October 21, 2008


                                     Results
                                              First, as can be       sales        performance.        performance         related
                                     seen in the blue text box       Specifically, ‘days on           indicators, and sales
                                     to the left, four of the        territory’, ‘short-calls’, and   performance), the question
                                     Genos EI sub-scales were        ‘long-calls’ correlated with     of     whether       EI   is
                                     correlated positively with      sales performance at .41,        directly/uniquely associated
                                     sales performance in a          .29, and .55, respectively.      with sales performance
                                     statistically significant       Thus, the number of              remained unresolved.
Genos EI & Sales Correlations
                                     way, with the remaining         short-calls was the
• Genos EI Total: r = .47*                                                                                     Consequently, to
                                     three       sub-scales          weakest predictor of sales
                                                                                                      address the question of
• ESA:               r = .28         approaching statistical         performance, while the
                                                                                                      whether EI was associated
                                     significance. Thus, higher      number of long-calls was
• EE:                r = .13                                                                          with sales performance
                                     levels of Genos EI were         the strongest predictor of
                                                                                                      directly (i.e., independently
• EAO:               r = .40*        associated with higher          sales performance.
                                                                                                      of ’sales call’ duration), a
                                     levels        of    sales
• ER:                r = .26                                                   In addition to the     semi-partial correlation
                                     performance. It will be
                                                                     above         correlations,      analysis was performed
• ESM:               r = .33*        noted that Emotional
                                                                     Genos EI was positively          between Genos Total EI
                                     Awareness of Others
• EMO:               r = .42*                                        associated with ‘days on         and sales performance,
                                     (EAO) and Emotional
                                                                     territory’, ‘short-calls’, and   which produced a positive
• ESC:               r = .30*        Management of Others
                                                                     ‘long-calls’ at .23, .35, and    and statistically significant
                                     (EMO) were the largest
                                                                     .18 (NB: only the long-          semi-correlation of r = .29.
Note: *p<.05;                        predictors       of  sales
                                                                     calls correlation was            Thus, Genos EI was
                                     performance.
ESA = Emotional Self-Awareness;                                      statistically significant).      positively associated with
EE = Emotional Expression; EAO =
                                              However,       as                                       sales       performance,
Emotional Awareness of Others;                                                Given the positive
                                     would be expected, the                                           independently of the effects
ER = Emotional Reasoning; ESM =                                      correlations between all
                                     traditional sales indicator                                      ’number of long-calls’.
Emotional Self-Management; EMO
                                                                     three categories of
                                     behaviours were also
= Emotional Management of Oth-
                                                                     variables           (EI,
ers; ESC = Emotional Self-Control.   positively associated with


                                     Discussion
                                              It is not surprising   Genos EI helps sales              with higher EI would still
                                     that the number of long-        through two separate              achieve higher levels of
                                     calls a sales person            pathways (see Figure 1 on         sales revenue. Thus,
                                     makes, the more sales           page 3).                          those sales people with
                                     revenue that person                                               higher levels of EI are
                                                                               One      pathway
                                     generates.            More                                        engaging in some sort of
                                                                     travels from EI to long-
                                     interesting, however, is                                          EI related behaviour that
                                                                     calls, which in turn leads
                                     that Genos EI scores                                              facilitates      sales,
                                                                     to     increased      sales
                                     predicted positively the                                          independently of sales-
                                                                     revenue. This result
                                     amount of sales revenue                                           calls.
                                                                     suggests that a person’s
                                     generated, independently
                                                                     higher level of EI                        Future research
                                     of the number of long-calls
                                                                     facilitates the execution of      with larger sample sizes
                                     sales people make. Stated
                                                                     meaningful ’longer sales          may attempt to determine
                                     alternatively, although the
                                                                     calls’ to clients.                which of the Genos EI
                                     length of time spent with a
                                                                                                       subscales       predict
                                                                              The     second
                                     client is important to
                                                                                                       performance the most
                                                                     pathway is direct from EI
                                     selling      successfully,
                                                                                                       strongly. The results in
                                                                     to sales revenue. This
                                     demonstrating higher
                                                                                                       this whitepaper suggest
                                                                     result implies that even if
                                     levels of EI is also
                                                                                                       that it is the more
                                                                     one held the number of
                                     important. Based on the
                                                                                                       ‘outwardly focussed   EI
                                                                     long-calls constant across
                                     results reported in this
                                                                                                       dimensions (EAO and
                                                                     all sales people, those
                                     whitepaper, it appears that
                                                                                                       EMO).

© Genos Pty Ltd                                                                                                                  2
Genos Whitepaper #3
                                                                                           GENOS INDUSTRY WHITE PAPER
 October 21, 2008

                                     Graphs



                                                                               Long-
                                                                               Calls
 More complete details relevant to                                                                   indirect
                                                       indirect
 this this investigation can be
 found in Jenning & Palmer (2007)
 and Gignac (2008).


                                                                               direct
                                                                                                           Sales
                                                   Genos EI



                                          Figure 1. Visual depiction of the indirect and direct association between Genos EI
                                                   and sales performance.




                                     References

                                     Gignac, G. E. (2008). Genos Emotional Intelligence Inventory: Technical Manual. Genos Press:
                                            Sydney, NSW.
                                     Jennings, S., & Palmer, B. (2007). Enhancing sales performance through emotional intelligence
                                            development. Organisations & People, 14(2), 55-61.




© Genos Pty Ltd                                                                                                                  3

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Genos Ei And Sales Performance

  • 1. Genos EI has a Direct Effect on Sales Performance Summary Genos Whitepaper #3 Emotional intelligence (EI) may be argued to facilitate higher sales performance in a range of sales-based industries. In this whitepaper, the results associated with an empirical investigation based on a sample of 33 pharmaceuticals sales people are reported. It was found that self- October 21, 2008 reported Genos EI was associated with sales performance directly, independently of the effects of other sales performance indicators such as number of sales calls, length of sales calls, and days on territory. However, Genos EI was also indirectly associated with sales performance through its effects on number of long calls, which in turn affected sales performance positively. Thus, it may be suggested that Genos EI impacts sales performance positively both directly and indirectly (i.e., by building rapport and achieving longer sales calls). Introduction Why do some client’s unique needs. beyond the effects of employees achieve higher These types of sales the number and length Special points of interest: levels of sales than related behaviours are all of ‘sales calls’ a sales • Genos EI predicts sales others? No doubt, the factors likely to lead to person makes? If this performance. complete answer to such greater sales proved to be the case, • The number of long-calls a sales a question would involve performance. empirically, it could then person makes predicts sales a large number of be said that EI has a performance. In light of the interacting variables, direct effect on sales above, the observation of • Genos EI predicts the number of several of which would be performance. However, it a positive association long-calls a sales person psychological in nature. would also be interesting between EI and sales makes. to observe that EI had an A significant performance would be • Genos EI predicts sales indirect effect on sales positive factor likely to expected. However, it may performance, above and beyond performance ‘through’ the explain meaningful be asked whether EI can the effect of long-calls on sales number and/or length of individual differences in predict sales performance, performance. sales calls a salesperson sales success is independently of more makes. Emotional Intelligence traditional sales indicators, (EI), as EI would likely be such as the number of To test the associated with factors sales calls made and the possibility that EI would such as building rapport length of time talking to predict sales performance with a client effectively, clients per sales call. directly, Genos conducted understanding a client’s a study with a group of Thus, the unique product or service sales employees (N=33) question addressed in this needs, and aligning the employed by a large, whitepaper is: Can EI value of the product or multi-national predict sales service they sell with that pharmaceutical company. performance above and Methodology The 33 sales of days out of the office of ‘sales calls’ to clients of employees involved in the with the purpose of more than 5 minutes study completed a self- selling); Short-Calls (i.e., duration). Finally, sales report version of Genos the average monthly performance was EI. Further, data on three number of ‘sales calls’ to represented by the sales related activities clients of less than 5 monthly average amount were also collected: Days minutes duration); and of revenue generated by on Territory (i.e., the Long-Calls (i.e., the each respective sales average monthly number average monthly number employee. © Genos Pty Ltd 1
  • 2. Genos Whitepaper #3 GENOS INDUSTRY WHITE PAPER October 21, 2008 Results First, as can be sales performance. performance related seen in the blue text box Specifically, ‘days on indicators, and sales to the left, four of the territory’, ‘short-calls’, and performance), the question Genos EI sub-scales were ‘long-calls’ correlated with of whether EI is correlated positively with sales performance at .41, directly/uniquely associated sales performance in a .29, and .55, respectively. with sales performance statistically significant Thus, the number of remained unresolved. Genos EI & Sales Correlations way, with the remaining short-calls was the • Genos EI Total: r = .47* Consequently, to three sub-scales weakest predictor of sales address the question of • ESA: r = .28 approaching statistical performance, while the whether EI was associated significance. Thus, higher number of long-calls was • EE: r = .13 with sales performance levels of Genos EI were the strongest predictor of directly (i.e., independently • EAO: r = .40* associated with higher sales performance. of ’sales call’ duration), a levels of sales • ER: r = .26 In addition to the semi-partial correlation performance. It will be above correlations, analysis was performed • ESM: r = .33* noted that Emotional Genos EI was positively between Genos Total EI Awareness of Others • EMO: r = .42* associated with ‘days on and sales performance, (EAO) and Emotional territory’, ‘short-calls’, and which produced a positive • ESC: r = .30* Management of Others ‘long-calls’ at .23, .35, and and statistically significant (EMO) were the largest .18 (NB: only the long- semi-correlation of r = .29. Note: *p<.05; predictors of sales calls correlation was Thus, Genos EI was performance. ESA = Emotional Self-Awareness; statistically significant). positively associated with EE = Emotional Expression; EAO = However, as sales performance, Emotional Awareness of Others; Given the positive would be expected, the independently of the effects ER = Emotional Reasoning; ESM = correlations between all traditional sales indicator ’number of long-calls’. Emotional Self-Management; EMO three categories of behaviours were also = Emotional Management of Oth- variables (EI, ers; ESC = Emotional Self-Control. positively associated with Discussion It is not surprising Genos EI helps sales with higher EI would still that the number of long- through two separate achieve higher levels of calls a sales person pathways (see Figure 1 on sales revenue. Thus, makes, the more sales page 3). those sales people with revenue that person higher levels of EI are One pathway generates. More engaging in some sort of travels from EI to long- interesting, however, is EI related behaviour that calls, which in turn leads that Genos EI scores facilitates sales, to increased sales predicted positively the independently of sales- revenue. This result amount of sales revenue calls. suggests that a person’s generated, independently higher level of EI Future research of the number of long-calls facilitates the execution of with larger sample sizes sales people make. Stated meaningful ’longer sales may attempt to determine alternatively, although the calls’ to clients. which of the Genos EI length of time spent with a subscales predict The second client is important to performance the most pathway is direct from EI selling successfully, strongly. The results in to sales revenue. This demonstrating higher this whitepaper suggest result implies that even if levels of EI is also that it is the more one held the number of important. Based on the ‘outwardly focussed EI long-calls constant across results reported in this dimensions (EAO and all sales people, those whitepaper, it appears that EMO). © Genos Pty Ltd 2
  • 3. Genos Whitepaper #3 GENOS INDUSTRY WHITE PAPER October 21, 2008 Graphs Long- Calls More complete details relevant to indirect indirect this this investigation can be found in Jenning & Palmer (2007) and Gignac (2008). direct Sales Genos EI Figure 1. Visual depiction of the indirect and direct association between Genos EI and sales performance. References Gignac, G. E. (2008). Genos Emotional Intelligence Inventory: Technical Manual. Genos Press: Sydney, NSW. Jennings, S., & Palmer, B. (2007). Enhancing sales performance through emotional intelligence development. Organisations & People, 14(2), 55-61. © Genos Pty Ltd 3