"When You Get Emotional, You Get Stupid."

Welcome to the newsletter

I may have watched every episode of Showtime’s "Billions" at least twice. And I have spent way too much time quoting Wags in meetings (it’s always a crowd-pleaser).

The show is packed with insights on business, leadership, and the world of high finance. I’ve realized – it’s a goldmine of quotes that hit home for me and anyone in the business world.

In this newsletter, let’s take the best quotes from "Billions" and link them to real-life business issues. Each week, we’ll dive into a quote, explore its relevance to our lives, entrepreneurship and leadership, and share some practical strategies (with a bit of humor to keep things lively).

So, let’s kick things off with one of my favorite Axelrod quotes:

"When you get emotional, you get stupid."

In the high-stakes world of business, emotions can be both a powerful motivator and a dangerous distraction. They can blindfold you, even if you are an expert leading a company like Microsoft or Volkswagen (I’m gonna elaborate later in the text). That’s why emotional intelligence is so important in leadership. Maybe mastering your emotions is the difference between success and failure?

The cost of emotional decisions

Consider a real-world example: the case of Martin Winterkorn, former CEO of Volkswagen. In 2015, the Dieselgate scandal erupted, revealing that VW had installed software in their vehicles to cheat emissions tests. Reports suggest that Winterkorn’s aggressive, high-pressure leadership style, characterized by fear and emotional volatility, contributed to a culture where ethical breaches were overlooked in the pursuit of results. The fallout was catastrophic: billions in fines, a tarnished brand, and a severe blow to the company’s reputation.

This is a classic case of what happens when leaders let emotions, particularly negative ones, cloud their judgment. Anger, fear, and frustration can lead to rash decisions, a toxic work environment, and ultimately, disastrous outcomes.

The power of emotional intelligence

On the flip side, let’s look at Satya Nadella, CEO of Microsoft, whose approach is rooted in empathy and emotional intelligence. When Nadella took over in 2014, Microsoft was struggling with internal divisions and a stalling innovation pipeline. By pursuing a culture of collaboration, openness, and emotional intelligence, Nadella changed the company. Under his leadership, Microsoft has regained its status as a leading tech innovator, with a renewed sense of purpose and a significant rise in market value.

Emotional intelligence involves self-awareness, self-regulation, empathy, and social skills—all crucial for navigating the complexities of leading a company. Nadella’s story proves it.

Tips for managing emotions

To avoid the pitfalls of emotional decision-making, here are some strategies that have proven effective for successful leaders:

1. Pause and reflect

In moments of high emotion, take a step back. Pausing allows you to assess the situation more objectively and avoid knee-jerk reactions.

2. Seek diverse perspectives

Encourage input from your team. Diverse perspectives can provide a more balanced view and help you make more informed decisions.

3. Practice mindfulness

Techniques such as meditation and deep-breathing exercises can help you stay calm and centered, even in high-pressure situations.

4. Develop self-awareness

Regularly reflect on your emotional triggers and how they impact your decision-making. Understanding yourself better allows you to manage your responses more effectively.

5. Foster an open culture

Create an environment where team members feel safe to express their ideas and concerns. An open culture can mitigate the negative impact of any single individual’s emotional state.

And…

In my own journey as a CEO, I've faced numerous high-stakes situations where emotions ran high. I remember how we were on the brink of closing a major deal, but unexpected complications arose. I almost let my emotions take control, but it’s never a good idea to burn bridges, especially in our sector.

As CEOs and entrepreneurs, we are often in the eye of the storm, where our decisions carry immense weight. By mastering our emotions and leveraging emotional intelligence, we can lead with clarity, inspire our teams, and steer our companies toward sustained success. Remember, the next time you feel emotions taking over, take a breath and recall Axelrod’s words.

Stay sharp, stay composed, and lead with intelligence.