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Culturalintelligenceanewimperative
Howdowegobeyondtheobviousmanifestationsofculturetounderstandandappreciatethe
underlyingdriversofemployeebehaviour?
AninditaBanerjeeJanuary05,2015LastUpdatedat00:11IST
AccordingtotheInternationalLaborUnion,70percentofinternationalventuresfailduetocultural
differences.Itisnotsurprisingthatorganisationsacrosstheglobeconductingbusinessesacross
culturalandnationalboundariesarelookingfortalentthatisgloballycompetent.Arecentresearch
reportfromtheEconomistIntelligenceUnitfindsthat90percentofleadingexecutivesfrom68
countriesbelievefindingeffectivecrossculturalpersonnelisatopmanagementchallenge.Thus,
selectionandpreparationforcrossculturalassignmentsrequirefocus.
Let'sconsiderthefollowingscenarios:
AnItalianexpatriatecomesfromhiscompany'soverseasheadquarterstohandletheprofitable
Indiansetup,thefocusandthegrowthlocationmarketfortheMNC.Theexpatriatehasafew
yearsofworkexperienceinotherAsiancountries.Heisconfidentthathisstyleofworkingwill
holdhimingoodsteadinIndiaaswell.However,withinmonthsofhisarrivalinIndia,people
inkeypositionsstartputtingintheirpapers.Theyfindhisstyleofleadershipstifling.
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AhighperformingteamofsoftwareprofessionalsisworkingcloselywithitsAmerican
counterpartteamonaproject.Theprojectisprogressingbuttheteamsarenotworkingwell.
TheIndiansfindtheAmericanswayoffunctioningaggressive.
AninfrastructureprojectteaminIndiaisworkingwithaJapaneseteambutfindstheJapanese
wayofworkingslowingdownprocesseswhatwithlengthymeetingsandfocusonpaperwork.
AnIndianfamilyrunmanufacturingcompanybuysoutaEuropeanfirminitsbidtoexpand
operations.Theintegrationofthetwocompaniesisturningouttobemuchtougherthan
anticipated.
Theexamplesgivenabovearedrawnfromissuesfacedbyleadersinrealbusinesssituations.Inmost
casestudies,thefailuretohandlecrossculturaldifferencesisleadingtocostlyfailure.
Interestingly,duringdiversityworkshops,whenaskedtolistdownkeyissuesfacedinworkingacross
cultures,mostoftenwegetalistofwhatiswrongwiththeotherculture(s)theGermans'gotoo
muchbytherulebook'theJapanese'relytoomuchonmeetings'andsoon.Stereotypingisoftena
partoftheproblem.
Howdowegobeyondtheobviousmanifestationsofculturetounderstandandappreciatethe
underlyingdriversofculturalbehaviour?
Theconceptof'culturalintelligenceor'culturalquotient'(CQTM)providesacomprehensive
frameworktoaddresstheseissues.CQTMwasdevelopedasaresearchbasedwayofmeasuringand
predictinginterculturalperformance.Accordingtoresearchers,PCEarley,SoonAng,andVanDyne,
culturalintelligencecanbedefinedasthecapabilitytofunctioneffectivelyacrossvariouscultural
contexts.Itisaconstructthatisdevelopedfromthetheoryofintelligence,whichisbasedonfourkey
pillarsderivedfrommotivational,cognitive,metacognitiveandbehaviouralaspects.TheseinCQ
parlancearedefinedasCQdrive,CQknowledge,CQstrategyandCQaction.
EachofthesedimensionsofCQfeedintoeachotherinacyclicmanner.Thedesiretotakeonan
internationalassignmentisareflectionofone'sCQdrive.CQknowledge,perhaps,isoneaspectof
crossculturalinterventionthatgetsthemaximumattention.Wecanfindnumerousresourcesvideos,
books,sensitisationtrainingworkshopswheretheemphasisisoninternalisingasetofdosanddon'ts
aboutthetargetculture.Weallagreethatacquiringknowledgeaboutthetargetcultureisimportant.
But,whenitisdoneinisolation,itleadstostrengtheningofstereotypes.
ThisiswhereCQstrategycomesinitisaboutawarenessandabilitytoplanforculturalinteractions.
Ifyouweretoidentifythemostroutinetaskbeingdoneacrossacrossculturalteam,writinganemail
requestinginformationonprojectupdate,forinstance,thenculturalbackgroundofthereceivers
shouldideallyinfluencethechoiceofwordsintheemail.Further,thelearningfromeachinteraction
needstobeincorporatedintofutureinteractions.ThesearepartofCQstrategy.
Culturalquotient,however,failsifCQactionisnothandledwell.CQactionistheabilitytoadapt
one'sverbal/nonverbalandotherbehaviourstoalignwiththedesiredbehaviour.Feelingmotivated
aboutworkingwiththecompany'sJapanesepartnersandacquiringknowledgeabouttraditional
Japanesegreetingsisnotenoughunlessoneisabletoactuallygreetwithasofthandshakeorabow
executedatthecorrectdegree.ThesefourCQparametersgohandinhandtoevaluatethecurrentlevel
ofculturalintelligence.
Therearemultiplecrossculturalcompetencytoolsavailableinthemarket,butwhatsetsCQapart
fromtheseregularassessmenttoolsisitsstatisticalrobustness.Organisationsacrosstheglobe,
includingWalmart,Shell,Lufthansa,CocaColaandGoogle,andacademicinstitutionssuchas
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Harvard,StanfordandLondonSchoolofEconomics,areusingCQbasedinterventionsinvarious
waysleveragingthepotentialofculturaldiversity,buildingleadershipdevelopmentprogrammesto
drivenewbusinessinitiatives,assessingandtrainingrecruiterstofindhighachievingindividuals
globally,drivingcustomerserviceandsalesandmarketingefforts,improvingM&Aandexecutionof
globalprojectsandpreparingexecutivesforoverseasassignmentsandrelocation.
CQisnotacapabilitythatiscastinconcrete,butsomethingthatisenhancedthroughreflection.The
problemisthatweoftenoverestimateourselves.ThisisaddressedinCQthroughthemultirater
assessmentoption.Organisationsworkingwithinamatrixreportingstructurecanhugelybenefitfrom
themultiraterassessmentastheperceptionsacrossdifferentgeographiesandlevelsinamatrixcan
differgreatly.
CQassessmentbasedlearningsessionsarenotculturespecific.Theemphasisisonbroader
adaptabilitytoculturaldifferences.
Notsolongago,IQwasseenastheprimaryprerequisiteforsuccess.Withthepassageoftime,we
havelearntthatEQtrumpsIQinmanysettings.Withbusinessesbecomingmoreglobal,IQ,EQand
CQwillbethetriumvirateofaptitudesthatwillframetomorrow'sglobalsuccessstories.
AninditaBanerjee
PracticeHead,Diversity,RenaissanceStrategicConsultants
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