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Events + Press

Public Events

May 4-6
2012 Esalen Workshop – Emotional Equations for Leadership & Life in Big Sur (link)

May 11-12
Wisdom 2.0 Business Conference in San Francisco (link)

May 17-20
ArtPadSF at The Phoenix Hotel in San Francisco (link)

May 22-23
4th Annual International Conscious Capitalism Conference in Waltham, MA (link)

June 12-14
2012 Lohas Speakers Forum (link)

Press

Big Think – The Mathematics of Happiness? (link)

TrendHunter Business (link)

Stanford Magazine – To Conquer That Woe? Divide (link)

Voice of America – Leading With Emotional Intelligence (link to radio interview)

Overcoming fear with Emotional Equations in INC (link)

Dylan Ratigan Show on MSNBC (link)

Bob Sutton – Chip Conley’s Emotional Equations: A Leadership Self-help Book You Will Love (Even If You Hate Self-help Books) (link)

The Guardian – This column will change your life: emotions as equations (link)

New York Times – Best Sellers (link)

Wall Street Journal – Best-Sellers (link)

Tim Ferris guest blog – Chief Emotions Officer (link)

CEO READ - Jack Covert Selects – Emotional Equations (link)

USA Today – Four new self-help books to start year off right (link)

SF Chronicle – Conley’s formulas for adding to happiness (link)

Mindful.org – (Despair = Suffering – Meaning) (link)

Inc. – Your Feelings? Surprisingly, They’re Based on Math (link)

Forbes – How Emotional Equations Can Change Your Life. – Q&A with Chip Conley (link)

Chip Conley’s appearance on KQED’s Forum (podcast)

Publisher’s Weekly – Emotional Equations is #1 (link)

Daniel Pink interview (link)

Guru Review on American Express Open Forum (link)

Mindful.org – Excerpt on Anxiety (link)

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Praise

“Rarely has a CEO bared his soul in a book as Chip Conley has in Emotional Equations. This powerfully authentic story and the resulting emotional building blocks that define how we can understand our internal weather make for a compelling read and a valuable operating manual for life.” –Tony Hsieh, Zappos’ CEO , author of Delivering Happiness

“Emotional Equations offers a splendid menu of rules-of-thumb for a satisfied, meaningful life. Chip Conley has tried what he advises; his equations to live by are clever, useful, and profound.” –Daniel Goleman , author of Leadership: The Power of Emotional Intelligence

“If you want to understand (or persuade) your boss, sister, neighbor, or teenager it helps to have an emotional equation. Chip Conley built one of the most innovative, customer-inspiring businesses of the last 20 years. He’s a leader who clearly understands the value of analyzing emotions.” –Chip Heath , author of Switch: How to Change Things When Change is Hard

“In this remarkable book, one of America’s finest entrepreneurs shares the wisdom that’s helped him find personal and professional renewal in the face of some devastating life events. Chip Conley’s equations are powerful tools for helping to make our emotions work for us, rather than against us, in business and in life.”–Daniel H. Pink, author of Drive

“Emotional Equations is a fresh, original guide to an authentic and fulfilling life. Every line is based on good science and lived experience and rings truthful and invigorating. There ought to be a law against successful CEOs writing such good books…where does that leave the rest of us?” –Mihaly Csikszentmihalyi, author of Flow

“Chip Conley makes the case that great business leaders don’t have to leap tall buildings in a single bound. Rather than superhuman, the best leaders — at work and at home — are simply super humans who know how to use their internal resources effectively. Emotional Equations offers practical advice so you can make your emotions work for you rather than against you.”–Marci Shimoff, author of Love for No Reason

“You may scoff at the idea that all the complexity and subtlety of human emotion can be reduced to a handful of arithmetic operations. Scoff all you want, but read the book. There is something important to be learned from every chapter. Chip Conley has written a book that is both welcoming and challenging, simple and complex, abstract and concrete. Read this book and take it to heart and your emotional life will never be the same.”–Barry Schwartz, author of The Paradox of Choice

“Emotional Equations” is a masterpiece by a master teacher. Philosopher/CEO Chip Conley peels away the thin veneer of let’s pretend organizational life and introduces us to the very raw and tender emotional core of our human experience. While reading, I felt joy, delight, curiosity, insight, inspiration, amazement and, most of all, a much deeper understanding of my own inner life. Simple, yet profound…you really must read this book.–Jim Kouzes, co-author of The Leadership Challenge

“If you’ve struggled to understand how to get control of your emotions, Chip Conley’s Emotional Equations is the book for you. Conley makes elegantly objective the subjective realm of feelings through the prism of simple mathematical formulas that offer fresh insight into how we can more effectively manage our emotions.”–Anne Kreamer, author of It’s Always Personal: Emotion in the New Workplace

“Emotional Equations reveals the rich tapestry of relationships among emotions which heretofore existed as isolated feelings within each of us. Chip’s book is required reading for every executive who wants to lead others effectively in today’s organizations that aspire to create opportunities for people to find and live out their callings.”–Dr. Tommy Thomas, CEO, Opposite Strengths, Inc., PhD mathematics & psychology

“Emotions are a mystery to many of us. Chip Conley provides insight into how different emotions operate, what consequences they can lead to, and how our proclivity for happiness is shaped by our emotional states. This book gives a practical framework for getting the most out of work, defining who you are, and finding contentment. It is an emotional tour de force.”–Jennifer Aaker, General Atlantic Professor of Marketing, Stanford GSB

“It’s incredibly rewarding to see one of my former psychology students evolve first into a very successful businessperson and then into a thoughtful observer of human nature. Emotional Equations is challenging, thought-provoking, insightful, and, ultimately, very practical.”–Phil Zimbardo, Professor Emeritus, Stanford University, author of The Time Paradox

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Best Seller

Using brilliantly simple math to explore and articulate the one thing that challenges and connects us all — our emotions — Emotional Equations takes us from emotional intelligence to emotional fluency, offering a new way to manage our internal world.

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Anxiety = Uncertainty x Powerlessness
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Authenticity = Self-Awareness x Courage
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Curiosity = Wonder + Awe
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Despair = Suffering - Meaning
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Jealousy = Mistrust / Self-Esteem
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Joy = Love - Fear
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Emotional Equations

ABOUT THE BOOK

With its brilliantly simple formulas that illustrate universal truths, Emotional Equations is an exciting, new, and immediately accessible visual lexicon for mastering your life challenges. Award-winning entrepreneur and bestselling author Chip Conley created this invaluable new self-help paradigm in order to break down life’s toughest obstacles into manageable facets that you can see clearly – and influence.

When Conley suffered a series of tragedies in the space of just a couple years – and his heart inexplicably flatlined after a speech – he began using what he came to call “Emotional Equations” (like Joy = Love – Fear) to help him understand and articulate what was going on in his internal weather system. These simple formulas helped him focus on the variables in life that he could deal with, rather than ruminating on the unchangeable constants (the bad economy, death, taxes) he could not.

Now, this veteran CEO shares his profound insights with the rest of us and shows how we can all become Chief Emotions Officers. Emotional Equations will give you a new perspective on your life and lead you beyond the concept of emotional intelligence and into an emotional fluency that enables you to identify, name, and manage elements that can define, hurt, and help you. Equations like “Despair = Suffering – Meaning” and “Happiness = Wanting What You Have ÷ Having What You Want,” have been reviewed for mathematical and psychological accuracy by experts. With compelling real-life stories, Conley inspires you to work through these equations and to formulate others to address your own circumstances. Whether you want to overcome confusion and uncertainty, fear and anxiety, or add more pleasure, joy, and meaning to your life, there is an Emotional Equation for you.

In these turbulent times, when so many are trying to become “superhuman” in order to deal with life’s speed bumps, tragedies, and setbacks, Emotional Equations guides you toward becoming a “super human being.”

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Chip Conley

CHIEF EMOTIONS OFFICER

In 1987, Chip Conley started his own hospitality company, Joie de Vivre (JDV), and, as CEO for two-dozen years, grew it into the second largest boutique hotel company in the United States. At the age of 26 with no industry experience, Chip transformed a seedy 1950′s “no-tell motel” into the world-renowned Phoenix Hotel, a legendary rock ‘n roll destination catering to the likes of David Bowie, Linda Ronstadt and Nirvana. JDV expanded into a collection of over 35 award-winning hotels, restaurants and spas, with more than 3,000 employees – each property with its own unique theme that inspires guests to experience an “identity refreshment” during their stay. Chip and his company’s time-tested techniques and transformational leadership practices have been featured in every major news outlet including TIME, USA Today, Fortune and The Wall Street Journal.

As the preeminent thought leader at the intersection of psychology and business, and a successful practitioner of emotional intelligence at work, Chip shared his unique prescription for success in his bestselling book, PEAK: How Great Companies Get Their Mojo from Maslow. Based on noted psychologist Abraham Maslow’s iconic Hierarchy of Needs theory, PEAK illustrates how business’s three key stakeholders – employees, customers and investors – are ultimately motivated by peak experiences that address their higher, unspoken needs. In his new book, Emotional Equations: Simple Truths for Creating Happiness + Success (Free Press, January 2012) Chip guides readers further down the path from emotional intelligence to emotional fluency – using math as a way to better understand and manage our emotions. Chip’s earlier works include The Rebel Rules: Daring to be Yourself in Business, and Marketing That Matters: 10 Practices to Profit Your Business and Change the World.

Chip is a highly sought after speaker – from TED to INC to GOOGLE. He has been honored with the highest accolade in the American hospitality industry, the coveted ISHC Pioneer award, and was one of four finalists for Hotels magazine’s “Corporate Hotelier of the World” award. The San Francisco Business Times named Chip the Most Innovative CEO – and JDV the “2nd Best Place to Work” – in the entire Bay Area.

After 24 years as Chief Executive Officer of the company he founded, Chip is now the “Chief Emotions Officer.” A committed philanthropist, he served on the board of Glide Memorial Church for nearly a decade and currently serves on the Burning Man Project and Esalen Institute boards. He created the San Francisco Hotel Hero Awards and founded the city’s Annual Celebrity Pool Toss event, which has raised millions for inner-city youth programs that now thrive in the troubled neighborhood where he launched his first hotel. Chip received his BA and MBA from Stanford University, and was awarded with an Honorary Doctorate in Psychology from Saybrook Graduate School & Research Center, where he is the school’s 2012 Scholar-Practitioner in residence.

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Chapter 1

EMOTIONS = LIFE

On August 19, 2008, my heart stopped. Just minutes after my business presentation on stage, I passed out. Flatline. My memories of that day are opaque, but I can still see the image that was swirling around my brain as I came to in the emergency room: thick, sweet, fragrant oil slowly dripping down a set of dark wooden stairs. My version of “seeing the light,” this was the ultimate wake-up call for me. The doctors could find no medical explanation for my heart failure.

Over the preceding few years, a series of wake-up waves culminating in my heart failure had hit me like an emotional tsunami and tested my sense of who I thought I was: a business I had built was sinking; a family member had been wrongly convicted of a crime and sentenced to San Quentin State Prison; a long-term relationship had ended painfully; and I had lost five friends and colleagues to suicide.

I know I’m not alone in experiencing these tragedies and set-backs. Many people have felt either out of control or stuck in an emotional logjam. At times, our emotions are crystal clear; we know what we’re feeling and how to respond. At other times, we need guidance. And my heart failure, besides being a medical emergency, was also an emotional emergency. I felt as if I were treading water, gasping for air, my emotions acting like enemies instead of intuitive allies.

I had tried my best to put on a good “game face,” because we CEOs like to portray a strong, steady image to everyone and a lot of people were relying on me. After all, my company is called Joie de Vivre (French for “joy of life”), so dour didn’t really fit the profile. I’d started the company in 1987 and grown it to more than three thousand employees, the largest group of independent boutique hotels in the state of California, and had been adept at creating healthy “psycho-hygiene” at the company. I’d also written Peak: How Great Companies Get Their Mojo from Maslow about adapting for the work-place the theory of motivation created by the psychologist Abraham Maslow.

During the momentous days of the decade’s first economic downturn, this mixing of psychology and business had let Joie de Vivre defy the general trend and nearly triple in size. It had also led me to lecture all over the world on how to become self-actualized—to become everything we’re capable of becoming at work.

When the second economic downturn hit in 2008, however, I retreated to my home—once my sanctuary but now a place filled with beautiful things and ugly thoughts. I would take off my game face and wallow in an emotional darkroom where all my negatives were developing. I had a certain emotional awareness about what was going on inside me but little means to make sense of it, let alone find meaning in it. I felt almost paralyzed by a psychological fog.

As I was waiting for some revelation, one of my friends, Chip Hankins, took his own life. He was my best “Chip” friend in the world and my insurance broker for more than a decade—a force of nature whom I deeply admired and, at times, emulated. We had more in common than just our names: we were both publicly extroverted but had an introverted, melancholy side as well; we both went for long periods of sobriety, even though we both owned bars. And we were both spiritual seekers who enjoyed throwing a frivolous party; we’d been planning to throw a “Chip” party someday to which we’d invite Chips from the around the world to share stories of “The World According to Chip.”

Instead, there I was at Chip’s memorial service, where I listened to person after person get up and tell “Chip stories.” It was surreal. The truth is, up to this moment, my mind had occasionally veered toward images of my own demise—by car crash or cancer—some-thing dramatic that might help me escape from the mess of emotions my life had become. Clearly, I needed to push the reset button on my mind, and my life, and make some fundamental changes. The terror and despair I felt over this profound loss gradually gave way to a renewed sense that I could remake my experience here on Earth and a budding gratitude that I would have that opportunity even though others would not.

During that time, as four other friends also chose death over life, I learned more about the nature of emotional depression and suicide. Nearly a million people try to commit suicide annually in America; about 5 percent of them “succeed.” Men are four times as likely to commit suicide as women, and suicide attempts by middle-aged people have spiked during the economic downturn (all five of my friends were men in their forties).

Shining the light on these sobering statistics gave me the incentive to look for a healthy way to make sense of my emotions.

 

SEARCHING FOR AN EMOTIONAL ANSWER

I was compelled to revisit a book I’d read years before, the psychologist Viktor Frankl’s landmark memoir Man’s Search for Meaning. Dr. Frankl’s book was a spiritual salve for me. I figured that if this man could withstand the agony of a Nazi concentration camp, I could probably deal with the challenges in my own life. I was acutely aware that my company needed a new solution to its problems, but I was more focused on turning around my own life. Maybe if I could do that, a company turnaround would follow.

I would recount the story of Man’s Search for Meaning to friends and colleagues, yet most couldn’t understand why I was so fascinated with it. In spite of their blank stares, I kept reading Frankl’s book and began to distill its wisdom down to one simple equation:

Despair = Suffering – Meaning

In other words, despair is what results when suffering has no meaning. In a recession (or, in Frankl’s case, in prison), suffering is virtually a constant, so it’s best to place your attention on growing your sense of meaning in order to decrease your feeling of despair.

This little mental rule of thumb or mantra became my lighthouse. Throughout the day, especially when I was feeling particularly tested, I would quietly recite this equation to myself as a reminder not to get caught up in the suffering and instead to place my attention on what I was supposed to learn. Because the worldwide hospitality industry was hit particularly hard by the Great Recession, the leaders of Joie de Vivre (JdV) were living lives of “quiet desperation”—in some cases, not so quiet. One day, as I facilitated a leadership series for senior managers, knowing that they were suffering, I decided to discuss my own vulnerability and worries and introduced my “meaning” equation to the group. The managers really responded to it—they started texting and tweeting it to their staff, and, next thing I knew, they’d asked me to teach a whole class on Emotional Equations. To this day, I teach employees at JdV how to use Emotional Equations to create insight and perspective as well as happiness and success. Here are a few of the most popular:

Disappointment = Expectations – Reality

Workaholism = What Are You Running From? / What Are You Living For?

 

Authenticity = Self-Awareness × Courage

Joy = Love – Fear

Though most people today aren’t locked in a concentration camp or acting as CEOs of companies in distress, many people are prisoners of their own minds. So in this book I ask you, “What’s your prison?” and I offer you some keys to unlock the door. Frankl’s meaning equation gave me a sense of freedom that liberated me from my habitual, fearful ways of thinking. Fear is a straitjacket. It incapacitates and isolates you. Yet the ancient root of “fear” is the word “fare.” Passengers pay a fare to take a ship from one point to another, so perhaps in these rough economic seas our fare of fear will take us to a new place in our lives.

As Winston Churchill advised during World War II, “If you’re going through hell, keep going.” Today, too, we all need to come to understand that we can use our seasons of darkness as a means to find new reservoirs of strength—strength we didn’t know we had.

You are no doubt faced today with situations that are testing you to be bigger than you’ve ever been in your life. Those challenges require you to become conscious of your emotions. As the poet Kahlil Gibran put it, “Your pain is the breaking of the shell that encloses your understanding.” As I navigated my way through my treacherous time, the question that kept emerging from my work with the meaning equation was “What is breaking open in my life that is meant to evolve into something new for me and those around me?”

 

THE PARALLELS BETWEEN MATH AND LIFE

In most of the Emotional Equations in this book, we’ll stick with basic math formulas—addition, subtraction, multiplication, and division—to get a handle on how emotions work together and how you can work with them. I want to note, however, that calculus is actually known as the mathematics of change. After inventing calculus, Sir Isaac Newton also crafted mathematical expressions of the laws of motion, capped off by the famous equation Force = Mass × Gravity (to be more precise, gravity is a form of acceleration).

Gravity is a universal force that affects the physical world, but you may not have considered how it also affects the human condition—and not just by keeping us on Earth. Gravity shapes our physical bodies; we often get shorter and closer to the ground as we age. Gravity can also shape our emotional selves. Emotional bag-gage, for instance is a form of gravity; we acquire more of it as we get older, and it weighs us down. The more emotional gravity we’re fighting, the more force we require to move forward. And force moving against gravity creates a lot of friction.

On the other hand, having a frictionless life is like being a rower gliding over the surface of the water—in rowing circles, this is called “swinging.” Abraham Maslow called it “self-actualization,” and Mihaly Csikszentmihalyi calls it “flow.” It’s a way of defying gravity.

When I went through the most difficult period in my life, I did not feel “in the flow.” On some level, I felt as if mysterious natural forces—such as gravity—were conspiring against me. As one friend told me at the time, “Your internal math is haywire.” That’s what it can feel like when you are out of sync with the world—you feel trapped, heavy, full of friction and chaos.

Chaos is a math theory, but it also describes how many of us feel in troubled times. As one who has spent my life doing the left-brain/right-brain tango, I have often grasped for what I now understand to be an Emotional Equation to give me insight into what I was going through at home or at work, to distill some basic truths in life. Emotional Equations provide a new, visual lexicon for mastering our age of uncertainty.

When I was a teen, I suffered through algebra with its constants and variables, and somehow I seemed to always get the answer wrong. Today, many of us feel as though we’re getting the answer wrong in life, and so we use prayers, mantras, and affirmations as a sort of adult form of algebra. The Serenity Prayer (“God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference”) is an example of a kind of equation for serenity that defines constants and variables in life.

When I was at my lowest, the meaning equation gave me the knowledge and conviction that if I placed my attention more on the meaning of this disparate collection of painful events, as opposed to the suffering, I would likely have less despair in my life. During my most troubled weeks, the equation felt as if it was my instruction manual for deactivating my emotional explosives. I didn’t need to be a math whiz to figure out the emotional truth of the meaning equation, I just needed to use it as my daily mantra and map to help me climb out of the deep well into which I’d fallen. In spite of my allergy to algebra, my solution to my personal inner chaos was to become an emotional mathematician.

Of course, there’s no perfect formula or spreadsheet for solving the mysteries of life. Even so, the world and our emotions are filled with relationships, and that’s what this book is about: the relation-ships between your emotions and how they can help you better understand yourself, your purpose, and your relationships with others.

 

ADVERSITY REVEALS GREATNESS

Here’s one major relationship that most of us can use some help sorting out: your mind and your wallet. They are inextricably linked. It’s no coincidence that the word we use to describe the worst of economic times also describes a serious psychological disorder: depression. Economic gloom lightens your wallet while weighing down your spirit. Five of the ten most stressful life events are related to whether you are employed and whether the quality of your work experience is good. Your work does more than affect your self-esteem; it organizes your day, connects you with others, and can give you a sense of purpose.

Not since the Great Depression have we seen such a perverse connection between work and our psyche as we do today. We are more familiar with the kind of recession that comes and goes like a brief winter storm, and our capacity to handle it has a lot to do with knowing it won’t last all that long. But what if this economic toilet bowl we’re in lasts longer than any other recession in history? How do we find the internal resources to cope with that bad news?

It’s encouraging to remember that some of the greatest American literature, such as The Grapes of Wrath and Of Mice and Men, came out of the Depression era. During the same decade, Napoleon Hill wrote the runaway best seller Think and Grow Rich (1937), which urged readers to adopt a positive mental attitude and channel the power of their minds to improve their lot in life. And the theologian Reinhold Niebuhr created the Serenity Prayer, which was adopted by the USO during World War II and subsequently by Alcoholics Anonymous and other twelve-step programs.

Why do misfortunes embitter one person while motivating an-other to become resourceful? What valuable coping skills can you acquire during difficult times that you would never have developed during a more tranquil phase of your life? Are there ways you can train your mind so that you don’t waste so much time and energy on emotions and tensions that aren’t serving you well?

Those questions are very personal for me. They’re part of the reason I created my initial Emotional Equation about meaning, then more equations for the people I worked with, and now this book for you and others. In researching these equations, I reached out to psychologists and mathematicians, who generally welcomed me (and even gave me an honorary doctorate in psychology). Heck, one well-known academic told me that I’d clearly had a fascination with emotions going back to when I named my company after the French expression for “joy.” And, I was reassured to find that the psychology community was already using equations that defined happiness, positivity, and even the likelihood of a stable marriage.

In the next chapters, I ground my storytelling in the math and science that supports Emotional Equations, to provide you with a shorthand means of correcting yourself emotionally—to get clearer perspectives and more control—during both good times and bad. One way to think of Emotional Equations is as a grown-up version of finger painting. If you mix two primary colors, say, red and blue, you get a secondary color, in this case purple. In fact, psychologists believe that our primary emotions work together to create secondary and even tertiary emotions that have subtle distinctions. An Emotional Equation is like having a flash card that you can raise in front of you to remind yourself that emotions are related to one another and that you can cultivate your perfect emotion potion.

Certain Emotional Equations will likely be more meaningful to you than others, and one section of the book may be more relevant to where you are in your life today. It’s a bit like an encyclopedia of emotions, so there’s no need to read the chapters in order. In fact, I recommend that you read a chapter at a time and think about it for a while, letting it seep into your subconscious. Or consider selecting one equation to focus on for the week and incorporate the “Working Through the Equation” section into your daily life.

The last chapter of the book provides a practical framework for deconstructing your own emotions and creating Emotional Equations that will be personally meaningful to you. I invite you to participate in the growing, emotionally fluent community on the Emotional Equations website, www.emotionalequations.com, where people are sharing the equations that work for them.

 

YOUR EMOTIONAL CONCIERGE

We all want a fully functioning heart and mind. Why shouldn’t we want the same for our emotional state? I’m not a therapist, but I can still help coach you through your emotions. During the most challenging of times, these Emotional Equations bolstered my leadership skills and our company’s performance. In fact, in 2010, Joie de Vivre was awarded the top American award for customer service in the Upper Upscale category of hotels by Market Metrix, beating Marriott, Hilton, Hyatt, Westin, Kimpton, and Peninsula. I believe the best CEOs are truly “Chief Emotions Officers,” since great companies have great cultures and at the heart of a great culture are healthy emotions. You may not think of yourself as a leader, but you are already leading yourself—and maybe others—on a daily basis.

This is a very different attitude from when I graduated from business school. Then I believed that in order to become a successful CEO, I needed to be i. But after nearly two dozen years of being a CEO, I’ve learned that the best leaders in life aren’t superhuman; instead, they’re simply super humans.

So just think of me as your emotional concierge. Or as your “street shrink.” Even though we use the word “shrink” to de-scribe an emotional counselor, I believe life isn’t meant for shrinking. It’s meant for stretching, and I’m hoping that Emotional Equations will stretch you and create a better life for you and those around you. After using Emotional Equations, you will find that your emotions will no longer get the best of you. Instead, your emotions can represent the best in you.

This is my operating manual for being a super human. I hope it serves you well.

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Blog

What’s Your Daily Offering?

December 28, 2011

I sip my lemongrass tea and watch with divine curiosity. Like hundreds of thousands of her fellow island people, the elderly Balinese woman places a series of daily morning offerings (known as Canang Sari) at strategic places around the home. The tropical scent of frangipani and incense wafts throughout the indoor/outdoor living room surrounded by verdant rice paddy fields. Even though no one other than me is watching, she bows with respect each time she places the palm leaf-based offering on the ground. These daily devotional gifts are a way of life in Bali and part of their Hindu/animist belief system dedicated to pleasing the gods and warding off demons with this ritual.

Whether we’re conscious of it or not, our work and personal lives are made up of daily rituals including when we eat our meals, how we shower or groom, or how we approach our daily descent into the digital world of email communication. Our habits comfort us much like the Balinese feel reassured by their morning offerings. But, have you ever taken an inventory of your daily rituals and how they’re serving you? And, have you ever imagined what daily rituals could make you a better leader or a happier person?

About a decade ago, I experimented with a daily offering at the worst of times for my company. As CEO, I could see that the dot-com bust was taking a huge toll on the psycho-hygiene of our hotel company. Knowing that creating a culture of recognition was one means of developing a ripple of positivity in an organization, I made it a practice of giving a minimum of two heartfelt expressions of recognition to two different people in the company each weekday. My rule was that it had to be unexpected by the recipient, it had to be specific in terms of what I was thanking them for, it needed to have a level of detail that was more like a paragraph than a sentence, and – if possible – it needed to be done in person. I tried this for a month and found that like a stone falling into a pond, the reverberating effect of people feeling significant by being caught doing something right helped change the mood and morale around the offices. My daily offering was the American workplace equivalent of a Balinese gift to the gods.

The Balinese could teach us a few things about how to create the conditions for a happy culture. One of my favorite Emotional Equations is the one about Happiness which is defined by Wanting What We Have divided by Having What We Want. The numerator of this equation is all about Practicing Gratitude, finding the time to really want we have rather than take it for granted. A daily offering is one means of doing that. The denominator – having what we want – is the act of Pursuing Gratification. When we jump on that never-ending treadmill of aspiring to have what we want in life, it can create a momentary adrenaline high but it also can distract us from all that we already have in our lives. Some dictionaries define “pursuit” as “to chase with hostility.” At work, do we chase happiness with an edge of hostility? I saw some of that at the mall this holiday season.

We can either be conscious or unconscious about our personal daily rituals as well as our organizational rituals. I just finished reading a groundbreaking book by Teresa Amabile and Steven Kramer called “The Progress Principle.” Based upon giving a large sampling of employees in seven diverse companies a daily journal along with precise instructions about how to review their work experiences of the day, the authors were able to create one of the most authoritative studies of the inner emotional life of American workers. And, they were able to show that the most fruitful means of managing or leading a work group is to give them a meaningful sense that they were making progress and had the resources and encouragement to feel like they were living up to their potential. It’s a very instructive read that I highly recommend. But, one of the most interesting lessons of their study was just how much the employees got out of their daily ritual of reflecting on their work day. Here’s a quote from one manager who was disappointed that the daily journal study was ending: “I am sorry this is coming to an end. It forced me to sit back and reflect on the day’s happenings. This daily ritual was very helpful in making me more aware of how I should be motivating and interacting with the team.”

Starting tomorrow, what offering, ritual, or habit are you going to start practicing that is going to serve you in your personal or work life?

Mastering The Anxiety Equation: A Remedy For Fearful Times

November 18, 2011

Has Anxiety become your middle name? No doubt, we’re living through unpredictable times and this is taking a toll on our physical and emotional health. This is becoming most pronounced in the context of the workplace which is having disastrous impacts on employee engagement and such prized qualities as innovation and creativity which wither in a fear-based corporate habitat. Some of us resort to tribal, “Lord of the Flies” behaviors to get by, while others of us just retreat to our cubicle in hopes that invisibility is our best means of saving our jobs. Somehow, the contagious emotion of fear has eroded our fundamental trust in our co-workers and the company. In the past few years, the Center for Work-Life Policy (according to Bloomberg Businessweek) says the percentage of Americans who trust their organizational leaders has dropped from 79% to 37%.

The fact is that almost all anxiety can be distilled down to two basic variables: what we don’t know and what we can’t control. So, the Emotional Equation for Anxiety? ANXIETY = UNCERTAINTY x POWERLESSNESS. You may have heard about the social science experiment in which people were given the choice between an electric shock now that’s twice as painful as one they would receive randomly in the next 24 hours. As you can imagine, the vast majority of people chose more pain now as opposed to less pain at some unpredictable time in the near future. Mystery creates anxiety, especially when we feel we have no influence on the situation.

Once you know the emotional building blocks of Anxiety, you can influence them. Take out a piece of paper and label it “The Anxiety Balance Sheet.” Create four columns with the first one being a list of what you DO know with respect to this issue that is giving you anxiety. Then, in the second column, write down what you DON’T know. In the third column, list what you CAN influence with respect to this issue and, finally, in the fourth column, write down what you CAN’T influence. Most people’s experience of this exercise is enlightening as they have more items in columns one and three (what they do know and what they can influence) than they expected. But, the magic comes from looking at what you don’t know  and what you can’t control. Often, you can move an item from column two to column one by just asking a few knowledgeable people on the subject whether it’s regarding your likelihood of a promotion or your job security. And, I’ve often seen people review column four and realize that they may have a little more influence over some of these items than they’d previously considered.

In sum, the lessons for leaders are simple. Even if you have bad news, it’s better than no news. Transparency is the leadership equivalent of giving people that electric shock early. It may be painful, but the uncertainty creates an even more distracting and debilitating environment. And, as a leader, one of the most effective steps you can take in harrowing times is to help your people steer away from what psychologist Martin Seligman calls “learned helplessness.” Great leaders help their people see how they can directly impact the company’s objectives and their own personal goals. The more externally chaotic the world becomes, the more we need sound internal logic, especially when it comes to our emotions.

The Top 10 Emotionally-Intelligent Fortune 500 CEOs

October 10, 2011

I entered Stanford Business School twenty-nine years ago as a naive twenty-one year old, the youngest in my class. One of my classmates immediately sized me up, asking “So, what did you specialize in before coming to get your MBA?” I said, “Growing up.” Not satisfied with my answer, he continued, “No, seriously, what’s your expertise and why’d they let you in here?” I paused and sheepishly said something absolutely true, but somewhat blasphemous for the times, “I guess I understand people well. My boss this summer told me my expertise is how I use my emotions to my advantage.” My classmate couldn’t stop laughing and he was on to glad-handing the next person because, clearly, I was a loser.

A decade and a half later, Daniel Goleman’s Emotional Intelligence (EI) theory was introduced to business schools around the world. But, this idea — still radioactive to some — that the dominant trait in effective leadership comes from EI (also called EQ), not IQ or the level of one’s experience or depth of their resume, took a while to become commonplace language amongst mainstream business folks.

But, while there’s still no hard metric for EI , conventional wisdom now favors this fluid ability as compared to the fixed capacity of one’s brainpower. When I graduated from biz school, I thought I had to be superhuman if I were ever to be a successful CEO. But after two dozen years of being a CEO, I’ve come to learn that the best leaders aren’t comic strip heroes, they’re just super humans who have developed the four capacities that Goleman outlined for EI: self-awareness, self-management, social awareness and relationship management. As Goleman recently told me, “EI includes a broad spectrum of competencies, and no leader is A+ across the board — even the best have room to improve.”

I’m often asked which business leaders are the ultimate examples of Emotional Intelligence, so I decided to do a little research. Limiting my search to only Fortune 500 CEOs of American companies (so Oprah doesn’t qualify), I started asking everyone I knew who they most admired as a role model for EI and then I talked with employees in these CEOs companies and did a deep dive into speeches they’d given and articles that had been written about them. And, of course, I took a look at the performance of their companies while they’ve been the “emotional thermostat” for their organization. So, drum roll please, here’s the first annual Top 10 Chief Emotions Officers in the U.S. (in alphabetical order):

• Jeff Bezos (Amazon.com): With his quirky laugh and self-deprecating style, Bezos doesn’t sound like a Fortune 500 CEO and that’s probably to his benefit. His obsession with the hearts and minds of his customers and his long-term perspective on relationships (and business strategy) are legendary, as was his YouTube announcementof Amazon’s Zappos acquisition in 2009.

• Warren Buffett (Berkshire Hathaway): “Success in investing doesn’t correlate with IQ once you’re above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble investing.” Intensely loyal and relationship-driven, he asks his CEOs to run their companies as if they were to own them 100 years from now.

• Ursula Burns (Xerox): In tandem with Anne Mulcahy who moved up to Chair, Burns transitioned to CEO as the first woman-to-woman CEO leadership transition in a Fortune 500 company in what has become a pivotal case study in organizational development. Direct, yet respectful, her assertiveness is matched by a sense of mission that inspires her employees.

• Jamie Dimon (JPMorgan Chase): At Harvard Business School, Dimon said: “You all know about IQ and EQ. Your IQ’s are all high enough for you to be very successful, but where people often fall short is on the EQ. It’s something you develop over time. A lot of management skills are EQ, because management is all about how people function.” ReadLast Man Standing about him.

• John Donahoe (eBay): Donahoe inherited a difficult situation from Meg Whitman with the need to truly alter the company’s business strategy. As a role model for Jim Collins’ Level 5 (humility & ambition) and Bill George’s “True North” leaders, Donahoe’s disciplined self-awareness and his listening ability have created a deeply loyal team and a healthy, evolving culture.

• Larry Fink (BlackRock): Called “psychologically astute” in a Vanity Fair feature article, Fink created the largest money-management firm in the world based upon self-reflection, teamwork and direct communication. His senior leadership team embraces EI seminars to improve their skills.

• Alan Mulally (Ford): Walk around Ford’s corporate campus and you will see office cubes featuring handwritten notes that Mulally has sent to employees… praising their work. Great interpersonal skills and a “Clintonesque” ability to make you feel like you’re the only one in the room when you’re in a conversation with him.

• Indra Nooyi (Pepsi): Nooyi is a conscious capitalist whose “performance with purpose” agenda has helped move employees from having a job to living a calling. She is acutely aware that being a woman of color means she may receive more attention and scrutiny, but she still projects her personality without reservation — whether it’ssinging in the hallways or walking barefoot in the office. She wrote the parents of 29 senior Pepsi execs to tell them what great kids they’d raised.

• Howard Schultz (Starbucks): He says that the main reason he came back was “love“: for the company and its people. Very dedicated to generous health care benefits –inspired by his father losing his health insurance when Schultz was a kid.

• Kent Thiry (DaVita): Leaders with high EI/EQ create culture-driven organizations that perform at their peak due to the power of mission and teamwork. Thiry took over a demoralized kidney dialysis center company that was almost out of business and, with a passionate spirit, created nearly 44 percent annual growth in earnings per share in the past decade, 6th highest of any Fortune 500 company.

Our Economy With Performance Anxiety

August 8, 2011

The psychology of confidence is just as important in the boardroom as the bedroom. As Wikipedia suggests, “Confidence can be a self-fulfilling prophecy as those without it fail or don’t try because they lack it and those with it may succeed because they have it rather than because of an innate ability.”

Harvard Business School Professor Rosabeth Moss Kanter wrote a book“Confidence” which could be distilled down to the following: Losing streaks are often created and then perpetuated when people lose confidence in their leaders and systems, while winning streaks are fueled by confident people who are secure in their own abilities and the ability of their leaders. Winning streaks are characterized by continuity and continued investment, while losing streaks are marked by disruption and a lack of investment that typically give way to a self-fulfilling prophecy of failure. Long-term winners often face the same problems as long-term losers, but they just respond differently. They know how to recover quickly and not let failure mess with their head.

We’ve all seen classic human behavior when our confidence is shaken. It could be the coach who throws out the game plan and tries the “Hail Mary” leading to further embarrassment of the team or the business group that starts blaming each other for petty issues. Or, at the high school dance, it could be the shy guy who feels smaller and smaller after two girls turn down his offer for a dance. And, of course, in the bedroom when performance anxiety strikes, one can feel like there are three Olympic judges propped on chairs above the bed ready to reveal their scores.

If “Disappointment equals Expectations minus Reality”, at some point after a few too many disappointments, we start expecting less. This is often the path to personal depression and it could be the same for an economy, which shares that same word – depression – to describe a similar valley. We end up with a “sulking economy.” And, that’s where we are today. For a leader, it’s not an easy thing to rebuild the expectations of one’s people after constant disappointment. The tried and true method of doing this is what I call the “momentum of victory,” creating a feasible goal in the short-term and achieving it. Once that’s accomplished, it means finding another small, concrete win on the horizon. Winning and losing are 90% mental.

Books That Help You Understand Your Emotions

April 15, 2011

I’m a guy who took no English or writing classes in college and only one psychology class and now I’m writing self-help books on emotions (Emotional Equations comes out in January 2012 and PEAK came out in 2007). So, my process of learning about emotions and psychology has been self-taught over the past few years plus I’ve been lucky enough to have a laboratory with a company of more than 3,000 employees and almost 60 different business units. So, I’ve been able to test things in one place and see whether that odd idea is a best or worst practice.

In preparation for writing Emotional Equations, I dove into the deep end of the academic pool reading hundreds of psychological studies and books on everything from anxiety to the difference between happiness and joy to Charles Darwin’s theory on the origin of emotions. Here’s a list of my top twenty book recommendations for anyone who wants to go “swimming” with me (I have put an asterisk * next to my favorite in each category and I haven’t included Viktor Frankl’sMan’s Search for Meaning since it’s not primarily about emotions):

HAPPINESS/CONTENTMENT

· Born to be Good: The Science of a Meaningful Life (Dacher Keltner)

· Happiness: Unlocking the Mysteries of Psychological Wealth (Ed Diener and Robert Biswas-Diener)

· Positivity: Groundbreaking Research Reveals How to Embrace the Hidden Strengths of Positive Emotions, Overcome Negativity and Thrive (Barbara Fredrickson)

· Stumbling on Happiness (Daniel Gilbert)

· The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom (Jonathan Haidt)

· The How of Happiness: A New Approach to Getting the Life You Want (Sonja Lyubomirsky) *

NEUROSCIENCE/EMOTION THEORY

· Buddha’s Brain: The Practical Neuroscience of Happiness, Love & Wisdom (Rick Hanson with Richard Mendius)

· Descartes’ Error: Emotion, Reason, and the Human Brain (Antonio Damasio)

· Emotions and Life: Perspectives from Psychology, Biology, and Evolution (Robert Plutchik)

· The Emotional Brain: The Mysterious Underpinnings of Emotional Life (Joseph LeDoux) *

· What is Emotion? (Jerome Kagan)

UNCONVENTIONAL BRAIN/EMOTION SCIENCE

· Molecules of Emotion: The Science Behind Mind-Body Medicine (Candace Pert) *

· The Biology of Belief: Unleashing the Power of Consciousness, Matter & Miracles (Bruce Lipton)

· The Spiritual Anatomy of Emotion: How Feelings Link the Brain, the Body, and the Sixth Sense (Michael Jawer and Marc Micozzi)

· The Spontaneous Healing of Belief: Shattering the Paradigm of False Limits (Gregg Braden)

PRACTICAL APPLICATION OF EMOTION THEORY

· Predictably Irrational: The Hidden Forces That Shape Our Decisions (Dan Ariely)

· The Art of Choosing (Sheena Iyengar)

· The Emotional Hostage: Rescuing Your Emotional Life (Leslie Cameron-Bandler and Michael Lebeau)

· The Paradox of Choice: Why More is Less (Barry Schwartz)

The Chief Emotions Officer

April 14, 2011

[Originally posted April 27, 2011 on The Huffington Post]

Executives execute. We don’t execute people as in life and death matters (although, sadly, we do “terminate” people when they’re no longer needed), but we have traditionally thought of business leaders as being emotionless technicians who just keep the trains running on time. But, timely trains didn’t make Southern Pacific or Santa Fe railroads into 21stcentury mega-corporations. In fact, the train industry missed its chance to expand into automobiles and airplane travel by thinking of their business a little too myopically. Maybe these train executives were a little too focused on the simple execution of being on time.

While execution is still a fundamental skill of the best executives, we no longer are purely executing mechanistic, industrial organizations. In this knowledge era, execution is all about people: how to harness and inspire the potential of those we work with. And, at the heart of people are our emotions, the mysterious internal weather that either propels or penalizes us. After 24 years of being a CEO, I’ve come to realize that the best amongst us are truly Chief Emotions Officers as we are the “emotional thermostats” for our organizations with studies showing that a typical leader has 50-70% influence over the work climate of their team.

There are three great pieces of empirical evidence that amplify this reality about 21st century leadership. First, Daniel Goleman has shown for 15 years now that emotional intelligence (EQ) represents two-thirds of the success of business leaders as compared to only one-third coming from either IQ or the leader’s transferable experience. And, yet, in 2010, less than 10% of the training and development dollars spent by America’s corporations went toward emotional intelligence or literacy training (often called “soft skills”). We know it’s important and, yet, we seem to be reluctant in investing in the skills to help our executives become Chief Emotions Officers.

Secondly, Dr Matthew Lieberman at UCLA has proven that labeling our emotions reduces the intensity of these emotions in such a way that it maximizes our cognitive abilities just at the time when we most need to use the prefrontal cortex of our brain for better reasoning and judgment. By being emotionally literate about what we’re experiencing, executives can sidestep the 10-15 point drop in IQ that often occurs for those who are barraged by having to make decisions during times of emotional distress. So, maybe being a CEO is less about being able to predict the times of trains and more about being an internal weather forecaster.

Finally, Harvard’s Nicholas Christakis, as well as a few other academics, has shown that our emotions are contagious. When we have the flu, our colleagues feel comforted that we stay at home in order not to spread the misery. Yet, when so many of us have caught the “fear” at work – especially in economically turbulent times – there’s no sane corporate voice warning us of the risks of how our emotions can spread and threaten the well-being of those in our organizational petri dish. The ultimate inoculation for fear is a great corporate culture and companies with great cultures have healthy psycho-hygiene. In other words, their leaders are emotionally attuned to what’s going on around them and they cleanse the company through transparent communication or other tactical means to help employees feel recognized and engaged.

Any executive worth their weight understands the principle of accrued interest. If you have a loan and don’t pay the interest currently, it accrues and can compound and over period of time. The cost of the interest can become staggering. This is an apt metaphor for organizational emotions that are not properly addressed in the workplace. Most companies – led by CEO’s who aren’t nearly literate about their own emotions – are actively disengaged in addressing the individual and collective emotions that are invisible predators of passion and engagement. From my own experience, I have learned the hard way. When I most have bottled up my emotions for extended periods of time, they have leaked out in other subversive ways that didn’t serve my purposes as CEO. And, yet, when I was most vulnerable and authentic in my emotional communication with fellow co-workers, ironically, I was told by these colleagues that I was more admired and they felt most comfortable to be all they could be at work.

The Most Neglected Fact In Business

March 28, 2011

[Originally posted March 28, 2011 on The Huffington Post]

Henry Ford complained, “Why is it when I need a pair of hands, I have to get the whole man as well?”  Sorry, Henry, that’s how it works.  My father, when he was in the midst of strenuous management-labor negotiations would say to me as a kid, “I love business, but the people side of business can be really frustrating.”  As much as I love my dad, I see the fallacy in his thinking now that I’m no longer a young whipper-snapper.  There is no people “side” of business.  The most neglected fact in business is that we’re all human and virtually everything we do in the context of business can be distilled down to the emotions and whims of people, just like you and me.

Douglas McGregor, who wrote “The Human Side of Enterprise” fifty year ago, suggested, “Behind every managerial decision or action are assumptions about human nature and human behavior.”  McGregor was the management guru who popularized Theory Y management, or the idea that people long for a workplace that allows them to actualize their greatest potential.  Humans are trustworthy, motivated, and collaborative.  Unfortunately, most of us come from the Frederick Taylorscientific management school of thinking.  Taylor famously suggested 100 years ago that, “In the past, man has been first; in the future, the system must be first. The first object of any good system must be that of developing first class men.” I’m sure Henry Ford was a big Frederick Taylor fan.  Theory X management is based upon the premise that men, by nature, are moldable and need to be trained because, left to their own devices, men are lazy losers.  Have you ever worked at a company that had this kind of underlying assumptions about its people?  What was the effect on the work climate over time?

The intersection of psychology and business is typically seen as being as congested, stressful, and emotionally barren as a peak commute traffic day on the LA freeways.  But, thankfully, we live in an era in which neuroscientists are teaching us about the malleability of our brain and the emotionally contagious nature of our workplaces.  We are not robots and, yet, when we’re treated as such, we can lose our passion for our work and our compassion for our fellow employees and customers.  Yet, companies that create a healthy “psycho-hygiene” are able to tap into the full potential of their people.  These companies evaluate their leaders not purely on financial results but on scales for both results and relationships, they create cultures of recognition knowing that positivity has a ripple effect just like negativity does, and they create a sense of purpose and meaning that helps employees feel that they’re motivated by an internal calling or inspiration as opposed to being a trained seal who only performs when financial incentives or awards are offered.

In sum, we’re finally starting to realize that organizations are purely the sum total of the relationships that make up that organization.  The companies we admire are like the people we admire: resilient, authentic, personable, collaborative, ambitious, and humble.  Daniel Goleman has proven that two-thirds of the success in business is based upon our Emotional Intelligence as opposed to our IQ or our level of experience.  As we look for the next crop of future CEO’s, maybe it’s time for America’s corporations to start interviewing grads from the Psychology masters’ programs rather than the MBA programs.

2011: The Year Of Curiosity

December 21, 2010

‘Tis the time of the year to reflect and project. I’m going to take my cue from the most famous management theorist of all time, Peter Drucker, who lived to the ripe old age of 95. This leadership guru incorporated two practices into his professional and personal life that I’ve decided to adopt in the new year.

First off, Drucker made it a practice of spending two weeks every year reviewing his work, a habit he picked up from his Editor-in-Chief when he was working for a newspaper in Europe. He would set aside this time to “review my work during the preceding year, beginning with the things I did well but could or should have done better, down to the things I did poorly and the things I should have done but did not do.” Simple idea, yet few of us practice this kind of self-reflection. I’m off to the beach for the next few days and, while I won’t spend two weeks on this, I will spend a few days doing an inventory of what I learned this year and how I can apply it in 2011.

Peter Drucker’s other practice – to adopt a new subject, completely unrelated to his work life, to study and master over the course of three years is an unadulterated form of curiosity. When I spent some time with Mihaly Csikszentmihalyi, the author of the landmark book Flow, this summer, he told me that the most important trait for 21st Century innovation isn’t creativity, but instead it’s curiosity. Curiosity – that blessed alchemy of wonder and awe – is a quality that we all had as a child and yet, with time, most of us found ourselves on a narrower and narrower path.

For more than 60 years, Peter Drucker studied one subject at a time from Japanese art to Civil War history with the intent of mastering the subject. Curiosity may have killed the cat, but it helped Mr. Drucker keep a facile mind and a youthful spirit into his mid-90’s. So, starting in 2011, I am going to take one subject per year and devour it – both mentally and experientially. This first year I’m going to tackle the sublime and geological magic of natural hot springs. Why and how were these created? Why do some smell so different than others? What are the health benefits or risks associated with using them? And, what’s the history of public bathing? And, as I will do in the future with subjects like Renaissance art or hang gliding, I plan to explore these subjects by literally diving in. So, in 2011, I will visit a different natural hot spring every month of the year. Iceland and Japan, here I come!!

Contact Chip Conley


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