Cross-Cultural Management: The Importance of Cultural Intelligence

 

Thanks to increased connectivity, today’s workplace is a far cry from those in the days of old.

 

Global collaboration is becoming commonplace as more and more businesses strive to become inclusive and more diverse.

 

In a global city like Dubai, cross-cultural relations dominate the workplace.

 

The city’s booming expat population means the workplace is a bustling microcosm of cultural dynamism. This rich, cosmopolitan mosaic of culture is breaking down cultural barriers and misconceived preconceptions.

 

This paradigm shift towards a more globally connected workplace has given rise to a new instrument for business success: cultural intelligence.

 

Understanding cultural intelligence

 

So what exactly is cultural intelligence?

 

Christopher Earley and Soon Ang, the two leading authorities on cultural intelligence, define cultural intelligence, or cultural quotient (CQ), as "an individual's capacity to function effectively in situations characterized by cultural diversity."

 

But CQ is more than just being culturally aware or sensitive. It’s the next evolutionary step from intelligence quotient (IQ) and emotional quotient (EQ), or the ability to express one’s emotions judiciously and empathetically.

 

CQ is the capacity to thrive in a workplace with multiple cultures, being respectful of culturally diverse situations, people, and environments.

 

Having a better understanding of diversity and inclusion is important for any C-level executive or those in senior leadership roles.

 

The importance of cultural intelligence in an intercultural workplace

 

The proliferation of the internet and advancements in the digital landscape mean that we now live in a world without borders.

 

Geography no longer limits ambition or our ability to work. CQ is a must-have leadership skill, necessary to becoming a better leader in today’s workplace.

 

The increased global mobility experienced in the 21st-century workplace requires leaders to develop different leadership capabilities reflective of cross-cultural situations. A more globalized world translates to a greater need for collaboration.

 

Leaders lacking CQ will struggle in today’s contemporary workplace. The inability to lead in cross-border situations will result in wasted resources, fractured infrastructures, uncooperative sectors, and a greater culture of silos.

 

Enhancing cultural intelligence

 

Cultural intelligence is not just an abstract concept. There is real business value to be derived from cultural intelligence. Positive return on equity occurs more greatly in a diverse workforce.

 

Research done by McKinsey found that a more diverse workforce, led by culturally intelligent leadership, are 35 percent more likely to outperform their peers.

 

Further, when cultural intelligence is integrated into the workplace, innovation and creativity are encouraged, resulting in greater productivity, talent retention, and a more entrepreneurial culture.

 

So how can leaders enhance their level of cultural intelligence?

 

Like most other traits important in the workplace, cultural intelligence is fostered with education, training, and experience. Below, we look at key ways leaders can develop a more cultural mindset.

 

1. Make diversity a priority

 

Cultural intelligence in action facilitates and encourages differences in the workplace. Making diversity a priority across all levels of your organization requires formal cultural diversity training.

 

Implementing effective diversity initiatives requires participation from the top.

 

The success of any diversity effort is determined by C-suite executive and management employees. Diversity training must also be provided during the onboarding process to emphasize its importance.

 

As management employees become champions of diversity and elevating its importance, its trickle-down effect will create a culture that respects diversity at every level.

 

2. Engage in rich communication

 

Leaders with high cultural intelligence understand the importance of communication. They have the ability and capability to adapt their communication style to remain respectful of today’s intercultural setting.

 

They can modify verbal and non-verbal behaviors to engage in rich communication across cultures.

 

While it’s impossible for any management employee to fully master the intricacies of every culture present in cross-cultural situations, remaining flexible will enhance effectiveness in cultural understanding.

 

By developing the understanding of how communicative behaviors such as verbal tone convey different meanings according to culture, leaders create a more inviting space for intercultural dialogue.

 

3. Create a culture of accountability

 

To make a culturally diverse workplace a positive experience for all within the organization, culturally intelligent leaders make accountability a core value. When everyone in the workplace is accountable for cultural differences, diversity can flourish.

 

Emphasizing a culture of accountability at every organizational level allows leaders to demonstrate their commitment to diversity and their understanding of cultural intelligence.

 

Putting differences to work through accountability fosters a higher level of respect and trust across all levels.

 

Leading with cultural intelligence

 

Today’s workplace is a coalition of cultures, all with different perspectives, interests and beliefs. With cultures and differences becoming further intertwined, culturally intelligent leadership matters.

 

Culturally intelligent leaders play a critical role in addressing diversity and interpersonal relationships in the workplace. Leaders must be change-focused, incorporating a global perspective to eliminate barriers to a more intercultural business environment.

 

Developing cultural intelligence will go a long way in creating a diverse work environment where differences thrive. It is through establishing mutual interdependence that leaders enable their organizations to succeed and grow.