2. Why IQ Isn’t the Whole Story
Intelligence matters - but the kind that grows your business isn’t just about smarts
Intro - We’ve All Heard About IQ - But Is It Enough?
If you’ve been in business for any length of time, chances are you’ve heard people throw around the term “IQ” or Intelligence Quotient. It’s long been seen as the gold standard for measuring how smart someone is.
But here’s the thing - having a high IQ doesn’t mean you’ll succeed in business, or in life.
In fact, for SME owners, it’s often not the most important kind of intelligence at all.
This article explains what IQ really is, why it’s not included in the Regenerative Intelligence model, and what you might want to focus on instead.
What Is IQ, Really?
IQ tests are designed to measure how well you can -
Solve logical puzzles
Spot patterns
Use language and numbers
Reason and analyse
It’s the kind of intelligence that helps with exams, technical analysis and structured problem-solving. And yes, it sure is useful. Better to have it than not, but it isn’t something you can really affect.
But here’s the catch - IQ doesn’t measure how well you deal with people, stress, change, or tough emotional situations. That’s where other forms of intelligence come in and where many businesses sink or swim.
Why IQ Isn’t in This Series -
IQ is mostly fixed. The others can be trained.
While you can improve your test-taking or memory skills, most research shows your IQ level stays relatively steady over time. Emotional, Somatic, and Creative Intelligence, on the other hand, are highly trainable and that’s what makes them so valuable for SME owners looking to grow as leaders.
IQ doesn’t guarantee business success.
Studies show that being book-smart or good at tests doesn’t necessarily mean you’ll be good at running a business. What matters more is your ability to handle uncertainty, connect with others and solve real-world problems creatively.
In fact, the Dunedin Longitudinal Study - a famous New Zealand research project, found that kids who could manage their emotions and delay gratification were more successful as adults than those with high IQs. That includes higher income, better health and stronger relationships.
IQ overlooks the messy, human side of leadership.
Being a business owner means dealing with people, not just numbers or logic. You need to motivate staff, defuse tension, manage your own stress and find new ways forward when plans fall apart. IQ doesn’t help much with that. Regenerative Intelligence does.
What Matters More for SME Owners?
Here’s what we’ve focused on instead -
Emotional Intelligence So you can connect, communicate and lead with empathy
Somatic Intelligence So you can stay grounded, calm and responsive under pressure
Creative Intelligence So you can adapt, innovate and solve problems when things change
These aren’t “nice to have”, they’re essential and they don’t depend on your school grades, background, or test scores.
Real-Life Example – Pete - Smart but Struggling
Pete had a sharp mind, top of his class in school, great at planning and highly analytical. He launched a consultancy firm in Wellington but struggled to keep staff and build trust with clients. Why? He often dismissed emotional concerns as “soft stuff,” and ignored his own signs of burnout.
After losing two team members in six months, Pete finally looked at his leadership style. He started working on his EI, learning to listen better, show empathy and manage his frustration. He also learned to check in with his stress levels before big meetings.
Within a year, his business was steadier, his staff more loyal, and his clients more engaged.
IQ helped him start the business. Emotional and somatic awareness helped him keep it.
Closing - From IQ to Regeneration
You don’t need to reject IQ - but you also don’t need to obsess over it. If you’re running a business, chances are you already have enough smarts.
What really matters now is how well you -
Handle pressure
Connect with people
Think creatively
Lead with self-awareness and purpose
That’s why this series focuses on intelligences that can grow with you, not ones that get frozen in a test score.
Case Study 1. Steve – Trade Business Owner, Rotorua
Focus - Emotional Intelligence
Situation
Steve runs a plumbing and gas-fitting business with a crew of five. After a rough 12 months, COVID delays, a key apprentice leaving and several customer complaints the team's energy was low. Staff were turning up late, grumbling about each other and avoiding direct conversations. Steve felt like he was constantly putting out fires and starting to doubt himself as a leader.
What Changed
After talking with John from RegenerationHQ, Steve realised he was pushing through stress and avoiding emotional conversations, hoping problems would sort themselves. He decided to front-foot it by learning some basics of Emotional Intelligence. He started asking each team member how they were really going, not just about work, but life. He also did a short EI online course and practiced naming how he felt before staff meetings (“I’m a bit wired this morning, let’s pace ourselves today.”)
Result
Team members began opening up, one was struggling with family issues, another felt undervalued. Steve shifted from just “fixing problems” to listening better and checking in regularly. Within three months, staff were more focused, customer feedback improved and Steve felt more confident leading not just the work - but the people.
Key Move - Active listening + emotional self-awareness
📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
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If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview
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Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.