Outline
Introduction – Tools Are Fun, Emotions Are Tricky
In the home services world, tech, tools, and trucks may keep your business running — but emotional intelligence in leadership is what makes it thrive into a Critical Mass Operation. The ability to understand, connect with, and motivate both your team and your customers determines whether you’re simply “doing jobs” or building a loyal fan base. When leaders develop emotional intelligence, they inspire trust, reduce turnover, and create customers who can’t help but recommend their company.
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The Undeniable Importance of Emotional Intelligence in Leadership
Many, many, many🙄 years ago I finally learned that all successful Residential Services companies are “Emotionally Based”.
I know, you’re shaking your head here while muttering, “No, Steve you don’t get it. I own a plumbing/ carpet cleaning/ lawn care, and/or HVAC company”. My reply? “No, these things are the physical service(s) you deliver. BUT…
…the actual on-site work you do only accounts for 20% of your success and profits. Instead, 80% of how a homeowner decides if they’re delighted (or disappointed) is based on how they FEEL (their emotions) about your people performing the work.”
“Whoa, Steve! You mean I’ve wasted huge amounts of money on my trucks and equipment?”😬 Nope. All this tangible stuff is an important “means to an end”.
After all, the “solutions” you provide are the reason a homeowner contacts you in the first place! However…
Your Cheerleader Customers will loyally use you again and again (and all the while singing your praises from the rooftops with 5-star online reviews!) IF (and when) YOU…
Build an “Emotionally Based Business”. (EEB)
Here’s the challenge for many of us. (You know who you are!) As entrepreneurs we are (yes, me too!) much more comfortable with the physical “stuff” in our business. (Your company’s equipment, shop, tools, vehicles, materials and chemicals along with the step-by-step work processes and tangible results.)
Steve’s Rant Warning: Don’t even get me started on your “Big Boy Toys”– hot cars, RV’s, golf clubs, boats, shotguns, motorcycles, fishing rods, etc! They waste not only money but time! When you’re distracted by this optional stuff (all of which require maintenance) your laser-like focus on your company will waver.😥
Pay Attention To These TWO Groups of Customers
And yet. the physical income-producing assets of any service business count for zilch compared to the emotions involved with your TWO customer groups. TWO groups? Yep, and the first very important people are your…
#1- “Internal” customers- These are your (hopefully) hard working employees. I placed this essential bunch first because a loyal, key worker is infinitely more important to your long term success than even your biggest spending residential client!
With your new EEB focus put on your “Employee Eyeglasses”. Now look at the working conditions, compensation, workplace conditions and culture and (most painfully) YOU as an employer? What do you see? Or more to the point- what does your employee FEEL?🤔 (Your workers need to feel appreciated, listened to and yes… loved!)💖
WARNING: Are you struggling with turnover? Do NOT come whining to me, “These are all these losers quitting on me, Steve! I’m the highest paying company in my area.” I’ll reply, “The ‘Very Best People’ (the ones you want for your team) will only build a career with a ‘Very Best Company’! So… (introspective pause here)… Are you a Very Best Company?” 😲
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#2- “External” customers- Yep, you knew I’d get to these (hopefully) passionately loyal residential clients! Without these homeowners our Group #1 above will be… without a paycheck! (And you too.)😬 Yet here’s the challenge…
No homeowner truly enjoys having workers “invade” their private domain. So, as the owner of an “Emotionally Based Business” you must focus on the feelings of your typical first time client.
WARNING: This emotional landscape tour will NOT be pretty but it just may save your business while infinitely improving your life!👍👍
TAKEAWAYS: Once you understand your employee’s and customer’s feelings you will all build a strong, loyal and very profitable relationship!
Now it’s your turn to help me! Even after 48 years of “practice” I still struggle with understanding my wife’s feelings! HELP!🤪
Summary – Smart Leadership = Sustained Growth
At the end of the day, emotional intelligence in leadership is what separates decent service companies from great ones. When you understand how your employees and customers feel — and lead with empathy, consistency, and respect — everything else falls into place. Your service team stays loyal, your clients stay happy, and your reputation grows without spending another dime on marketing. That’s the transformational power of emotionally intelligent leadership.