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The emotional bank account, your firm’s profitability, and you

Learn how filling your team’s emotional bank account—through consistent support and recognition— will strengthen your firm’s bottom line.

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Last Updated January 23, 2025

Category Culture

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In “The Seven Habits of Highly Effective People,” author and motivational speaker Stephen R. Covey introduced the concept of the emotional bank account—a principle that has profound implications for leadership and organizational success.

Much like a financial bank account, we make deposits and withdrawals to our emotional bank accounts. But in this case, rather than money, we’re building up and withdrawing from a reserve of trust with other people.

Our deposit currencies are positive actions (e.g., honesty, kindness, integrity, gestures of goodwill), while the withdrawals are activated by negative actions, like ignoring a team member’s problems, disrespect, or not meeting commitments.

How leaders influence emotional bank accounts

For firm leaders, understanding and actively managing emotional bank accounts is more than just good interpersonal practice—it’s a crucial driver of business success. When leaders consistently make deposits into their teams’ emotional bank accounts, they create an environment of trust and psychological safety that directly impacts the bottom line.

The value of deposits in today’s workplace

The modern workplace has undergone significant changes. Statistics from Mental Health America show how much mental health has been impacted in recent years, with anxiety and depression screens reaching record highs.

In professional services firms, many workers have left their positions, citing burnout from long hours and poor work-life balance. The shift between remote work, hybrid arrangements, and office returns has added another layer of complexity to workplace dynamics. Maintaining positive emotional bank account balances has become even more critical.

When team members feel valued and supported, they’re more likely to:

  • Demonstrate higher productivity and engagement
  • Show greater innovation and creative problem-solving
  • Contribute to a positive workplace culture
  • Stay with the organization long-term
  • Deliver superior client service

How leaders can make strategic deposits

According to Stephen Covey, there are six types of major deposits leaders can make to build trust and drive organizational success:

  1. Understand the individual—Take time to understand each team member’s unique perspectives, aspirations, and challenges. This personal understanding leads to better team alignment and more effective resource allocation.
  2. Attend to the little things—Consistently demonstrate respect and consideration through small gestures. These micro-interactions build a culture of mutual respect that enhances collaboration and productivity.
  3. Keep your commitments—Follow through on promises and maintain consistency in your leadership approach. This reliability creates a stable environment where teams can focus on performance rather than uncertainty.
  4. Clarify expectations—Provide clear direction and frameworks for success. When expectations are well-defined, teams can operate more efficiently and achieve better results.
  5. Show personal integrity—Demonstrate unwavering commitment to your stated values and vision. Leaders who “walk the talk” inspire trust and motivate their teams to maintain high standards.
  6. Apologize when you make a withdrawal—Address mistakes promptly and take responsibility for your actions. This accountability strengthens trust and sets a powerful example for organizational culture.

The emotional bank account, profitability connection

When leaders consistently make these deposits, they create a reservoir of trust that translates into tangible business benefits:

  • Reduced turnover costs through higher employee retention
  • Increased operational efficiency from engaged, committed teams
  • Enhanced client relationships through improved service delivery
  • Greater innovation from teams that feel psychologically safe
  • Stronger organizational resilience during challenging times

Like any bank account, if you make regular deposits into your emotional bank account with your team, you’ll build up significant capital—in the form of goodwill and trust—that drives sustainable business success. However, when you only make withdrawals, your account will eventually become overdrawn, leading to decreased engagement, higher turnover, and ultimately, reduced profitability.

Building and maintaining positive emotional bank account balances isn’t just about being a “nice” leader—it’s about creating the conditions for sustainable business success in today’s complex professional environment.

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