The first competency required to build a transformational leaders personal credibility bank is Emotional intelligence (EQ). It is the ability to know yourself, manage yourself and build effective relationships with others. It has been written about extensively in recent years, yet, surprisingly, it is still not well understood by everyone in business, let alone perfected and practiced by leaders at all levels. In its simplest sense, EQ requires leaders to have a solid understanding of their own emotional construct and to have the ability to manage and regulate their emotions. In addition, EQ requires the ability to understand the emotional tone and motivations of others.