10th Apr, 2008

Practical Intelligence for On-the-Job Success

New psychological research is sharply focusing on people’s practical intelligence: The special talents with which we meet life’s daily challenges.

Two Minds at Work

Most of the investigators believe there are two intelligences at work in people: a practical, experiential intelligence that makes our daily decisions and has nothing to do with IQ, and a rational intelligence that unravels the mysteries of math and literature, offering some logical explanations for our actions.

Sternberg and Wagner have studied the influence of what they call “tacit knowledge” on the practical intelligence of successful business executives. “This tacit knowledge, which is rarely verbalized,” they say, “enables workers to meet the often unwritten and unspoken demands of their jobs.”

Although the specific contents of tacit knowledge may differ from job to job, the basic framework remains.

DODO Marketing BlogFor example, “the ability to sell is a kind of persuasion everybody needs,” notes Sternberg. “You sell yourself when you meet someone; you sell your ideas or point of view; you sell when you negotiate a deal. Sales is a skill that demands a specific kind of practical intelligence.”

Using a New Test

Wagner and Sternberg built a test around a dozen work-related situations with a choice of responses based on interviews with successful executives. The test measures three types of practical intelligence: self management (e.g., an ability to motivate yourself); managing others (how to reward); and managing your own career (how to enhance your reputation).

Here is a typical question—one that measures the thinking needed to advance one’s career:

Your year on the job has been generally favorable.

Performance ratings for your department are at least as good as they were before you became manager, and perhaps even better.

You have two assistants. One is quite capable. The other just seems to go through the motions but is of little real help. You believe that although you are well-liked, there is little that would distinguish you in the eyes of your superiors from nine other managers at a comparable level. Your goal is rapid promotion to the top.

The following is a list of things you are considering. Rate the importance of each:

a. Find a way to get rid of the “deadwood”—i.e., the less helpful assistant.

b. Participate in a series of panel discussions on local public TV.

c. Make sure your superiors are made aware of your important accomplishments.

d. Accept a friend’s invitation to join an exclusive country clubto which many higher-level executives belong.

When making decisions, give a great deal of weight to the way your superiors like things done.

The most successful executives-54 managers, 19 of whom were from the top 20 Fortune 500 companies—tended to rank their responses in the same order: e, a, c, b, d.

Those who scored highest were found to have more management experience and higher salaries than those who did less well.

Implications for Managers

The research on practical intelligence offers fresh insights into the special competencies of successful managers. For example, two Boston psychologists, David McClelland and George 0. Klemp Jr., compared outstanding performers with mediocre ones. The most effective do the following:

  • Push hard for concrete details when confronted with ambiguity.
  • Find unusual analogies to explain their insights.
  • Gather problem-solving data from as wide a range of sources as possible.
  • Consistently anticipate the impact of their decisions on others, and never hesitate to confront people.

Observation: While our IQs may be fixed, some psychologists believe that practical intelligence can be enhanced: We can be trained to work smarter. This is good news indeed for those who want to scale the executive ladder.

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Practical Intelligence for On-the-Job Success

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