When Brilliant Boards Still Fail
Some boards have all the right ingredients on paper — world-class directors, deep industry knowledge, and financial acumen. Yet they still falter.
That’s because success depends on more than intelligence alone. EQ in the boardroom — the ability of directors to read the room, manage emotions, and build trust — is often the missing factor that determines whether boards thrive or fail.
Take Qantas Airways in 2024. The airline’s board and leadership team were highly skilled and focused on operational resilience. But when reputational crises erupted — from COVID-19 cancellations to stakeholder mistrust — the cracks showed.
The board’s deference to a dominant CEO, combined with a culture of consensus, meant robust challenge was rare. Financial resilience was prioritised, but stakeholder trust and employee wellbeing were neglected. The outcome? A governance review, multimillion-dollar penalties, reputational damage, and the abrupt end of the CEO’s tenure.
The lesson is clear: IQ alone isn’t enough. Without EQ in the boardroom, even technically gifted boards risk blind spots, cultural drift, and failure.
What is EQ?
Emotional intelligence (EQ) is the ability to recognise, understand, and manage emotions — both our own and those of others. It goes beyond technical brilliance, shaping how directors influence, collaborate, and make decisions under pressure.
Psychologist Daniel Goleman’s research has evolved into a model of Four Domains and Twelve Competencies, widely applied in leadership and governance:
- Self-awareness – recognising emotions, understanding triggers, and staying grounded in high-stakes discussions.
- Self-management – controlling impulses, demonstrating adaptability, and staying composed during conflict or crisis.
- Social awareness – reading the room, sensing stakeholder needs, and showing genuine empathy.
- Relationship management – building trust, managing conflict constructively, influencing effectively, and coaching others.
For boards, these domains aren’t abstract theory. They shape how Chairs lead leaders, how Company Secretaries anchor trust, and how directors create psychological safety for robust debate and decision-making.
Why EQ in the Boardroom Matters
The governance review of Qantas made one point clear: when EQ in the boardroom is weak, the consequences are costly. Groupthink silenced dissent, low empathy left employees and customers feeling ignored, and reputational damage soon followed.
This isn’t unique to Qantas. Research by organisational psychologist Dr. Tasha Eurich suggests that while 95% of people believe they are self-aware, only about 10–15% truly are. For boards, that means most directors risk unconscious bias, reactive decision-making, and blind spots in oversight.
Boards that build emotional intelligence in governance unlock critical advantages:
- Better decisions – directors pause, reflect, and reduce bias before reacting.
- Inclusion and DE&I – empathy and social awareness foster psychological safety, ensuring diverse voices are not just present but heard.
- Resilience under pressure – self-management keeps directors composed, even during conflict or crisis.
- Alignment with modern agendas – ESG, stakeholder trust, and ethical governance depend on emotionally intelligent leadership.
High EQ also drives engagement and retention. A diverse board is valuable, but only if directors feel included, respected, and safe to speak up. Psychological safety — the ability to voice views without fear — is now recognised as a cornerstone of board effectiveness.
❝Nomination committees must look wider, deeper, and further ahead, and challenge themselves on what skills and experiences are truly needed.❞Peter Swabey, Policy and Research Director, CGIUKI
EQ in Key Governance Roles
While all directors benefit from emotional intelligence, some roles demand it as a non-negotiable. Two positions stand out: the Company Secretary and the Chairman.
The Company Secretary: the board’s trusted hub
The Company Secretary sits at the centre of board dynamics — the hub of the wheel. Their authority rests not on power but on the trust they build with directors and executives alike.
- They act as confidante and connector, bridging relationships across the board and executive.
- Their influence relies on empathy, discretion, and insight, as much as on technical or compliance expertise.
- With strong EQ, the CoSec can sense tensions, advise the Chair discreetly, and guide the board through sensitive issues like succession or director performance.
Without EQ, the Company Secretary risks being seen as an administrator. With it, they become a 21st-century leader who shapes board culture and effectiveness.
The Chairman: leading leaders
The Chairman’s role is not simply to run meetings — it is to lead leaders. This requires mastering the art of reading the room, creating psychological safety, and balancing authority with humility.
- Chairs with high EQ draw out contributions from every director, manage conflict constructively, and spot unspoken concerns before they derail decisions.
- EQ equips Chairs to coach and challenge without dominating, empowering executives to own their leadership while ensuring accountability.
- Courage, empathy, and composure distinguish great Chairs — and directly influence governance outcomes.
Too many Chairs rise from CEO or CFO ranks, where EQ has historically been undervalued. The result: boards led by technically brilliant but emotionally tone-deaf leaders who struggle to enable true debate and accountability.
In contrast, a Chairman with high EQ fosters a powerful, engaged boardroom culture, where directors are both supported and stretched to deliver their best.
The Business Case for EQ
The business case for EQ in the boardroom is not only behavioural but financial.
The Payoff of High EQ
- Future demand: The World Economic Forum’s Future of Jobs Report 2025 ranks emotional intelligence among the top 10 core skills for modern organisations.
- Performance payoffs: In Leadership That Gets Results, research shows executives lacking EQ rarely excel; their divisions underperform by 15–20% on revenue targets.
- Team impact: Studies link emotionally intelligent leadership with stronger team climates and improved business outcomes.
- Retention advantage: Employees under managers with high EQ are four times less likely to leave, directly reducing turnover and risk.
The Price of Low EQ
- Reputational damage: As Qantas demonstrates, weak EQ leaves boards blind to stakeholder sentiment, resulting in penalties and public backlash.
- Disengagement: Directors who feel unheard withdraw, weakening challenge and oversight.
- Board dysfunction: Consensus culture and groupthink flourish when psychological safety is absent.
Board effectiveness is not just about structure or compliance — it is about behaviour in the room. With EQ in the boardroom, directors transform individual intelligence into collective resilience, trust, and sustainable decisions.
Boards Cannot Afford to Ignore EQ in the Boardroom
Qantas is a cautionary tale. A board with high IQ but low EQ is like a plane with uneven lift: it can take off, but it won’t stay steady in the air for long before instability takes over.
Governance is not just about making the right decisions — it’s about making them in the right way. EQ in the boardroom equips directors to challenge constructively, balance diverse perspectives, and build resilience under pressure.
Boards that invest in EQ achieve more than compliance. They achieve trust, inclusivity, and long-term effectiveness.
If your board isn’t measuring EQ, it isn’t measuring performance. Genius Boards helps boards build emotional intelligence through behavioural evaluations and tailored training programmes — ensuring your board can lead with both head and heart.
Curious about how EQ influences your board’s culture and decision-making?
Contact us to find out how Genius Boards can help your board harness emotional intelligence through behavioural reviews and tailored training.
