Over half (53%) of Australian project management professionals say the application of a high level of emotional intelligence (EQ) has a significant impact within a project team in helping them to achieve their goals.

Project management software incorporated with EQ by Australian project managers

Project managers require a diverse set of skills in order to navigate their role successfully. While project management (PM) software is helpful for tracking the work, your soft skills can determine how well you lead people. Emotional intelligence (EQ) plays a pivotal role in this, empowering project managers to identify, understand, and respond effectively to both their own emotions and those of their team and stakeholders.

To explore the influence of EQ in project management, Capterra surveyed 2,500 project management professionals across 12 countries, including 200 Australian respondents.* Our findings show that project managers can lean into collaboration and transparency while using PM tools, then focus on high-EQ strategies for the top EQ challenge: conflict resolution.

Key highlights
  • Project managers increase EQ application: 86% of Australian PMs report increasing their use of EQ at work over the past 2 years.
  • Incorporating EQ with PM increases success: Team management, decision-making, and problem-solving are the top areas positively impacted by EQ.
  • Overcome EQ challenges: Conflict resolution is the top area of EQ project managers in Australia struggle with (41%).

Aussie leaders recognise the value of EQ in project management and are increasing its application

Project managers across all surveyed countries report an overall increase in their use of EQ over the past 2 years, possibly due the growing recognition that successful project delivery depends not only on technical expertise but also on effective relationships. This is reflected in Australian PMs reporting an increase of their leadership valuing EQ, with 44% saying they strongly agree, and 48% saying they somewhat agree, that leadership at their company understands the importance of EQ in project management.

What is the definition of emotional intelligence (EQ)?
Our definition of emotional intelligence follows the medical industry standard: Emotional intelligence is your ability to perceive, use, understand, manage, and handle your own emotions as well as others'.

As PM software becomes more capable of handling administrative tasks, especially as artificial intelligence (AI) capabilities evolve and mature, and teams more diverse, the ability to navigate emotions, build strong relationships, and manage conflicts has become increasingly critical.

Donut chart showing the increase of EQ use among Australian project managers over the past two years

Additionally, the rise of remote and hybrid work has highlighted the need for PMs to engage and motivate their teams in more empathetic and nuanced ways. This shift reflects a broader trend toward valuing soft skills alongside traditional project management abilities.

Surprisingly, only 20% of PMs say senior-level stakeholder management is a top area positively impacted by their EQ. This low number could be due to a misconception that EQ emphasises empathy over results, and executives want PMs who they can trust to deliver. Building trust and engagement with the team helps them deliver results, which in turn will build trust and credibility with executives.

Four strategies PMs can incorporate EQ with PM software

Nearly half of PMs (55%) say team management is a top area where their EQ has the most positive impact. Successful team leadership includes providing transparent communication, expectation setting, and guidance. High-EQ PMs know how to use the visual representation of projects that PM software provides to their advantage to be a consistent and transparent leader. 

Let’s look at a few examples of common PM software features and how you can use them to promote engagement and provide clarity on expectations.

1. Use PM tools to encourage collaboration between stakeholders

Collaborative teams solve problems and make decisions better and faster than disengaged or siloed teams, and your EQ supports these efforts. In fact, over half of PMs say team management (55%), problem-solving (50%) and decision-making (50%) are the top three areas most positively impacted by their EQ. 

One way to support responsive collaboration is to encourage project-related communication within your PM software. Centralising communication in one platform supports asynchronous, responsive information sharing and ensures that all team members are working with the most up-to-date information. Additionally, collaboration within the tool builds a sense of ownership and accountability, as everyone can see how their contributions impact the project’s success. They’ll be more likely to respond to unexpected roadblocks and jump in to help each other out.

Proggio screenshot of collaboration features in project management software
Collaboration features in project management software (Source)
Keeping communication within your software will be increasingly more important as natural language processing (NLP) and other machine learning capabilities are integrated into PM tools. For example, they’ll be able to scan comments and documents within the system to identify new tasks to be created or provide sentiment analysis for project health insights.

2. Embrace visual aids such as project dashboards during status meetings

Sharing the project’s dashboard during meetings provides a clear, real-time snapshot of progress, ensuring everyone is on the same page about the project’s health. This transparency helps to highlight both achievements and areas needing attention, fostering a collective responsibility for the project’s outcomes. The visual representation of tasks and timelines also encourages accountability, as it is clear who is responsible for each aspect of the project.

Zoho Projects screenshot of a project dashboard
A project dashboard visually showing the status of the project (Source)
In order for this technique to be effective, everyone needs to keep the PM tool updated. Set the expectation that all updates need to be input by a specific day and time–before the meeting. Be sensitive to the fact that changing behaviour is more difficult for some than for others and, the first few times you try it, gently remind each team member individually the day before.

3. Use planning functionality to collaboratively and transparently plan

While it may be tempting to create the full project plan and timeline yourself and then present it to your team, a collaborative and transparent approach will have a better effect. You can develop the first draft yourself, but then use your PM software’s planning function to finalise and assign tasks together. This transparency allows the team to see how their tasks align with the overall project timeline and provide input on adjustments needed. This collaborative approach also makes it easier to modify plans as the project progresses, helping the team adapt quickly to changing requirements and roadblocks.

monday.com screenshot of team planning
Planning functionality with project management software (Source)
A third (33%) of Australian PMs say time management is a top aspect of project management most positively impacted by their EQ. A collaborative, transparent approach like the one above helps ensure that the time allotted for tasks is inline with what the team feels they can do, improving time management for the whole project and possibly other projects team members may be juggling, too.

4. Implement project tracking to regularly review risks in status updates

Many PM tools have features specific to tracking risks and can be used in the same transparent manner as the other features discussed above. Whether you review risks during project meetings or schedule focused sessions for risk management, sharing the risk register or assessment feature ensures everyone is aware of potential threats and the steps being taken to mitigate them. Moreover, regularly reviewing these risks together fosters a culture of accountability, where the team is collectively responsible for identifying and mitigating uncertainties.

Celoxis screenshot of a risk assessment
Risk assessment tool (Source)
Risk management is one of the aspects of project management most positively impacted by a PM’s EQ according to 30% of Australian respondents. Use your EQ skills to not only identify potential risks but also to encourage the team to be invested in mitigating risks. Support team members who raise concerns or share ideas for mitigation and recognize them for proactive problem-solving.

41% of Aussie PMs say their biggest EQ challenge is conflict resolution

From project priorities to sharing resources and everything in between, project managers are constantly managing stakeholders’ competing goals and concerns. Australian PMs who use their EQ techniques to navigate conflict tend to find better solutions and can even improve relationships. Unfortunately, conflict resolution is the top reported area of EQ PMs report struggling with the most to adopt or demonstrate.

Here are some effective strategies to try the next time conflict arises.

1. Practice self-regulation to de-escalate conflict

A third (33%) of PMs report struggling with self-regulation, which involves staying calm, composed, and focused on the issue at hand rather than reacting impulsively or escalating tensions. Although you might be feeling frustrated or angry in the moment, the goal is to not outwardly display or direct those emotions at others.

  • For example, if a heated argument breaks out during a project meeting and tensions run high. Take a slow breath in and openly acknowledge the conflict in a neutral manner. Then call for a break. Keep an eye out for the most heated people, or those continuing the conflict during the break, and intervene politely and calmly. 
Leaders who can regulate their emotions are less likely to have outbursts or make erratic decisions, which also helps in building credibility and trust with their team and stakeholders.

2. Establish mutual objectives to find common ground

Focus on finding common ground by identifying shared goals and interests. Ask probing questions about your mutual objectives and discuss collaborative solutions rather than dwelling on differences. Be open and clear that you want to deliver the best possible outcome for all parties and the best way to do so is to find the common ground and work together from there. Over a third (34%) of Australian PMs report struggling with relationship management, and this approach can help build stronger foundations in your key relationships.

  • For example, if two departments are in conflict over the prioritisation of project tasks, you can schedule a joint meeting. Start by emphasising the shared interest in the project’s success and then encourage each side to list their priorities, looking for overlaps. After the meeting, update the project plan accordingly and share with the entire team.

3. Develop clear lines of communication and solicit feedback

After a conflict has been resolved, provide constructive feedback to the involved team members and stakeholders by focusing on specific behaviours and their impact. Avoid placing blame or drawing character conclusions, and instead focus on what you need from them the next time tensions rise. You may find using a 360-feedback tool is helpful to gather and maintain what was discussed and suggested. Thirty-four percent (32%) of Australian PMs report struggling to communicate their needs/expectations and feedback sessions can be a good avenue to do so.

  • For example, schedule a one-on-one session with the team member who initiated or escalated a tense situation. Be transparent and supportive about the purpose of the discussion, giving them space to share openly. Keep a neutral tone but clearly state how their behaviour impacts the team and project and what your expectations are for them going forward. This approach should encourage them to seek your support earlier on in conflict and allows you to re-establish expectations.

These EQ-based techniques help manage emotions effectively and promote a positive and solution-oriented approach to resolving conflicts.

EQ is fundamental for project success when integrated with PM software

Think of EQ as one layer in the foundation for personal and team success, enhancing your ability to lead, problem-solve, and resolve conflicts effectively. By integrating EQ with the technical capabilities of project management software, PMs can foster stronger team dynamics, drive better decision-making, and ultimately achieve more successful project outcomes. As the demands of the role change, those who prioritise and develop their emotional intelligence will be better equipped to navigate the complexities of modern project management.

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Survey methodology

* Capterra's 2024 Impactful Project Management Tools Survey was conducted online in May 2024 among 2,500 respondents in the U.S. (n=300), Canada (n=200), Brazil (n=200), Mexico (n=200), the U.K. (n=200), France (n=200), Italy (n=200), Germany (n=200), Spain (n=200), Australia (n=200), India (n=200), and Japan (n=200). The goal of the study was to understand the leadership and emotional intelligence skills needed for PMs to successfully lead teams and projects leveraging/incorporating AI. Respondents were screened to be project management professionals at organisations of all sizes. Their organisation must currently use project management software.

Note: The screenshots of applications included in this article are examples to show a feature in context and are not intended as endorsements or recommendations.