Imagine you’re a business leader under intense pressure to close a deal. The rush of excitement to secure a big sale might cloud your judgment, causing you to overlook crucial contract details or ignore red flags. On the flip side, the fear of failure could stop you from taking necessary risks, resulting in stagnation. This is where emotional awareness comes into play—and if you’re not paying attention to it, you’re setting yourself up for failure.
When the COVID-19 pandemic hit, it was like the world stopped. The travel industry was hit hard, and Airbnb’s business, built entirely on short-term rentals, came to a screeching halt. For CEO Brian Chesky, the company was facing a crisis like never before. But instead of reacting in panic, he did something rare—he took a step back, stayed calm, and thought things through.
Chesky knew that his decisions would affect not just the numbers, but the people—the employees, the hosts, and the guests. And so, he focused on one thing above all: empathy. In a time of uncertainty, he knew that people needed to feel heard and supported. While many CEOs might have rushed to make cuts or hide behind corporate jargon, Chesky chose transparency.
He made the tough decision to lay off a significant portion of Airbnb’s workforce. But he didn’t just do it without care. He communicated directly with the affected employees, offering severance packages, career transition assistance, and health insurance. It wasn’t just about business; it was about treating people with respect during a difficult time.
And Chesky didn’t forget Airbnb’s hosts and guests. He understood they were facing uncertainty too. So, he made sure their voices were heard, offering support, flexibility, and reassurance wherever possible.
What Chesky did wasn’t just about keeping Airbnb afloat. It was about leading with humanity, showing that even in a time of crisis, you can make decisions that balance business and care for people. And in the end, that kind of leadership is what helped Airbnb not just survive, but ultimately thrive. See What Nobody Tells You About Building Business Structures.
Your emotions drive your decisions more than you probably realize. No matter what industry you’re in, the ability to make clear, rational choices can make or break the direction of your business. Emotional awareness isn’t just some nice-to-have trait—it’s critical. It’s time you start paying attention to how your emotions affect your choices. Let’s break down what it really means to be emotionally aware and how it can shape the future of your business.
I don’t want to be at the mercy of my emotions. I want to use them, to enjoy them, and to dominate them. –Oscar Wilde
What is Emotional Awareness?
Emotional awareness is all about recognizing, understanding, and managing your own emotions—and the emotions of those around you. It’s a vital part of emotional intelligence, and let’s face it, emotional intelligence is non-negotiable for strong leadership, effective teamwork, and making smart decisions. When you’re aware of your emotions, you gain control, allowing you to regulate them and make decisions that are grounded in logic, not reaction.
Without a solid grasp of emotional awareness, you’re setting yourself up for impulsive decisions that completely miss the mark on your organization’s goals. You’ll react to every event without taking a moment to properly assess the situation. In business, emotional awareness means recognizing when you’re stressed, excited, frustrated, or overly confident—and understanding how those emotions can skew your judgment. This level of self-awareness helps you avoid rash choices and instead steer toward decisions that align with your long-term objectives. It’s about staying level-headed and keeping your eyes on the bigger picture.
Impacts on Decision-Making
After the death of Steve Jobs, Tim Cook inherited a company in a vulnerable position. He could have easily panicked and made impulsive decisions out of fear or stress. But Cook didn’t fall into that trap. He stayed calm, remained focused, and stuck to Apple’s core values. His emotional awareness allowed him to prioritize long-term goals over immediate reactions, which is why Apple didn’t just survive—it thrived under his leadership. Apple introduced new products, grew its market share, and became one of the most valuable companies in the world. If Cook had let emotions rule his decisions, Apple would be a very different company today.
Then there’s Howard Schultz, former CEO of Starbucks. Back in the early 2000s, Starbucks hit a growth plateau, and customer loyalty started to slip. Schultz didn’t freak out or make hasty decisions based on market data or emotions. Instead, he took the time to understand what his customers were truly looking for. He realized they didn’t just want coffee—they wanted an experience, a sense of community. Schultz rebranded Starbucks as a “third place” between home and work, focusing on building an emotional connection with customers, not just selling more products. That emotional awareness and focus on customer experience is what turned Starbucks around and allowed it to dominate the market again.
So, what’s the takeaway for you? If you’re not emotionally aware, you’re making decisions based on fleeting feelings rather than sound strategy. Emotional intelligence isn’t about suppressing emotions—it’s about understanding them and using them to make better, more informed choices. If you’re smart, you’ll learn to recognize how emotions influence your decisions and use that awareness to align your actions with your business goals. Don’t be the leader who lets emotions drive decisions; be the one who uses emotional intelligence to drive success.
Benefits of Having Emotional Awareness
- Improved Clarity: Emotional awareness is a game-changer for any leader. It helps you avoid making decisions driven by overpowering emotions like fear, excitement, or frustration. When you’re in tune with your emotions, you can take a step back, reflect, and think clearly instead of rushing into choices that could harm your business. This kind of self-awareness isn’t just about keeping your cool—it’s about using emotional intelligence to make smarter, more rational decisions that are aligned with your long-term goals. If you’re not paying attention to your emotional state, you risk making hasty, reactive choices that you’ll regret. Master emotional awareness, and you’ll be the leader who leads with logic, not impulses.
- Better Problem-Solving Skills: When you’re aware of your emotions, you can shift your focus from reacting impulsively to actually finding solutions. This gives you the clarity to solve problems effectively because your emotions won’t cloud your judgment or hinder your creativity. Emotional awareness allows you to step back and think critically, leading to smarter decisions and better outcomes. Instead of letting your feelings dictate your next move, you’ll be in control—clear-headed and ready to tackle challenges with a calm and rational mindset.
- Better Risk Management: Emotional awareness is a game-changer for business leaders. It helps you recognise when your emotions are skewing your judgment and clouding your ability to assess risks realistically. Instead of diving headfirst into risky decisions based on fear or excitement, you’re able to pause, reflect, and make more balanced, calculated choices. This level of awareness ensures you approach business risks and investments with clarity, reducing the chances of impulsive decisions that could lead to disaster.
- Stronger Leadership and Team Dynamics: If you’re a leader and you’re not emotionally aware, you’re setting yourself up for failure. Leaders who lack emotional awareness will struggle to manage their teams, resolve conflicts, and earn the trust of their people. When you ignore your emotions, you create an environment where people feel overlooked and undervalued. But when you own and manage your emotions, you set the stage for a team that feels heard, respected, and motivated. Emotional awareness isn’t optional for strong leadership—it’s a non-negotiable skill that creates an atmosphere of trust, collaboration, and success. If you’re not leading with emotional intelligence, you’re already behind.
Care for your psyche…know thyself, for once we know ourselves, we may learn how to care for ourselves. –Socrates
How You Can Develop Emotional Awareness
- Emotional Reflection: Let’s be honest—if you’re not taking the time to reflect on your emotional reactions after big decisions, you’re setting yourself up for failure. Journaling or simply reflecting on how you felt during significant events can uncover patterns you might otherwise miss. These patterns reveal just how much your emotions influence your choices, for better or worse. If you’re serious about improving your decision-making, you need to understand the emotional triggers behind your actions. Ignoring this process is a shortcut to poor decisions and missed opportunities.
- Practice Mindfulness: Techniques like meditation and deep breathing aren’t just buzzwords—they’re powerful practices that help you stay grounded and aware of your emotions in real time. Emotions can hijack your decisions, but mindfulness allows you to pause, recalibrate, and respond thoughtfully. If you’re serious about effective leadership and decision-making, you need to integrate these practices into your daily routine. It’s not a luxury; it’s essential.
- Seek Feedback: Seeking feedback from trusted colleagues or mentors isn’t just a good idea—it’s critical for improving emotional awareness. Those who know you well can offer insights into blind spots you might miss, especially when emotions are clouding your judgment. They provide a fresh, unbiased perspective that helps you see how your emotions are affecting your decisions, whether you’re overreacting, underestimating risks, or making snap judgments. Without this external input, you risk staying stuck in your emotional biases and making decisions that could hurt your business. Don’t underestimate the value of honest, constructive feedback—it’s a powerful tool for sharpening your emotional intelligence.
- Regular Emotional Assessments: You need to make it a non-negotiable habit to assess your emotional state before making key decisions. It’s not just a good practice—it’s essential. By regularly checking in with yourself, you ensure you approach decisions with intention, not impulsive emotion. This simple habit creates a more balanced, thoughtful approach, allowing you to step back, clear away the emotional clutter, and focus on what truly matters. When you let emotions go unchecked, they lead to hasty, poorly thought-out choices. Taking the time to assess your emotions allows you to make decisions that align with your values and long-term vision.
Conclusion
Emotional awareness isn’t just a personal trait; it’s a game-changing business tool. When you understand and manage your emotions, you’re not only making smarter, more rational decisions—you’re cultivating a healthier work environment and becoming a more effective leader. Recognizing when emotions are influencing your choices and acting with emotional intelligence is what separates great leaders from the rest.
By practicing emotional awareness, you avoid the trap of knee-jerk decisions that can derail your business. Instead, you can create strategies that are thoughtful, empathetic, and built for long-term success. It’s not just about being in touch with your feelings; it’s about using that insight to make better choices for your company and your team.
