Globalisation. It's hard to pick up any business related-read nowadays without being told how the workplace is increasingly globalised, how we are facing increased global competition or to read about people banging on about the global war for talent.
In fact, we've been talking about globalisation for some time now. Just flicking through some of the papers in my ever-increasing 'to read' pile, I see references to business globalisation as 21st Century phenomenon; others describe it as a 20th Century invention; while some refer to it as being introduced in the 19th Century along with the Gold Standard.
In fact there are references to globalisation all the way back to approximately 400 BC when Herodotus recorded the 'strangeness' of doing business with the ancient Egyptians.
So we may not be able to agree when globalisation started, but started it has. Yet despite having talked about globalisation for so long, it seems to me that the vast majority of organisations, including those that pride themselves on being 'genuinely' multinational and multicultural, have not yet grappled with what this means for them in reality.
What is cultural intelligence?
I am struck by how many leaders within multinational organisations are embarrassed by how little their organisation does to ensure it is operating with cultural intelligence. People shuffle their feet and talk about cursory expat training, which might cover how to hand over a business card without offence, but does little to equip expats with the skills they genuinely need to work effectively in a different cultural climate.
How many people in your company, for example, know when 'yes' means 'yes' in a different culture, and when it actually means 'no'? How many people know in which cultures it is entirely expected to openly voice either assent or dissent with what is being discussed?
If organisations are genuinely looking to do business in a culturally intelligent way, then two levels of cultural intelligence need to be examined. The first level is an individual level of cultural intelligence. That is, helping the employees, managers and expats who are at the coalface having to make globalisation work, to demonstrate cultural intelligence. There are three key elements to individual cultural intelligence:
1. Knowing the cultural values of the other party.
2. Being mindful of the impact of your own cultural values.
3. Adapting your behavior to demonstrate cultural intelligence.
Cultural faux pas
Sadly, many organisations simply put their employees through cultural training programmes that are supposed to increase the knowledge element of cultural intelligence, but instead simply reinforce stereotypes and assumptions, and can be wildly inaccurate. According to one of these programmes, for example, men should never wear striped ties to do business in the UK.
The second level of cultural intelligence concerns the amount of cultural intelligence embedded within the organisational processes themselves. For example, expatriate failure rates vary between 20 and 75% yet organisations often do very little to select the right people for an expatriate role or provide the appropriate support when people are in these roles. Or think about those organisations that only equip their teams with basic communication media - and then wonder why their global teams seem to experience communication and trust issues.
So, the question is, how culturally intelligent is your organisation? How many cultural faux pas are committed each day in your offices? The conclusion that I have come to is that while our economies may be in a state of globalisation, all too often, our businesses and people are not. What do you think?






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