CULTURAL INTELLIGENCE IN A VUCA WORLD

Lesson 1: What is CQ–Cultural Intelligence?

LEARNING OBJECTIVE

• Understanding the nature of globalization and evolving demographics is critical for global leaders. You will examine the rationale for culture learning–the cultural imperative of the 21st century–in order to become aware of our own attitudes and assumptions about the importance of culture in leadership.

KEY TAKEAWAY

Understand the complexity of globalization.

Define the meaning of CQ-Cultural Intelligence and describe its four components.

Explain why people are reluctant to develop CQ.

Explore why you need to develop your CQ as a global or multicultural leader.

LEADERSHIP APPLICATIONS

• Technical skills are not the same as interpersonal skills.• Leaders need to understand the impact of the “shrinking” world in that they must lead people from diverse backgrounds.

The increasing interdependence among national governments, business firms, nonprofit organizations, and individual citizens.

It involves: high risk, uncertainty, unknown outcomes = COMPLEXITY

The three primary mechanisms that facilitate globalization are the:

1. Free movement of goods, services, talents, capital, knowledge, ideas and communications across national boundaries

2. Creation of new technologies such as the Internet and air travel3. Lowering of tariffs and other impediments to this movement.4. Human migration – especially from undeveloped to developed

countries

Globalization

Source: Economist Intelligence Unit Survey

The Cultural Imperative

Source: Economist Intelligence Unit Survey

The Cultural Imperative

We all think we are more skilled than we really are.

Unconscious Bias

1. Unawareness of our intercultural

communication blunders.

2. Awareness of lack of intercultural

competence but does nothing to

change behavior.

3. Awareness of need to develop

intercultural competence and is

commitment to integrate.

4. Ability to respond naturally and

appropriately based upon

intercultural competence.

EQ – Emotional Intelligence

The ability to know how you are feeling and how those around you are feeling; also to know how your emotions might be affecting others.

• Self-Awareness & Other-Awareness

• Self-Regulation

• Motivation

• Empathy

• Social Skills

CQ is a person’s ability to function skillfully in a cultural context different than one’s own.

CQ – Cultural Intelligence

CQ-Behavior: is the ability to act appropriately in different

situations based upon the context, the situation, and with

the appropriate cultural responses. It also includes being able to monitor and control one’s verbal and

nonverbal behaviors to match a situation as it is unfolding.

CQ-Knowledge: is when we develop knowledge about the world. We learn what cultural similarities and differences are

and we try to make sense of these through creating mental

maps that help us recognize the unfamiliar. This knowledge

includes aspects such as history, society, customs, religion, politics, economics, etc.

CQ-Motivation: is a person’s interest in interacting with others

who are different. It involves curiosity and a desire to learn as

well as relates to the energy invested in seeking out and

learning from people who are different. It also include a person’s

confidence to interact with ambiguity and difference.

CQ-Strategy: is the ability to make sense of intercultural

experiences based upon our learning as social beings

means we gather cultural knowledge of our

surroundings as we try to figure out where we fit in

(enculturation).

CQ is a person’s ability to function skillfully in a

cultural context different than one’s own.

CQ – Cultural Intelligence

PERSONAL ORGANIZATIONAL

Culture Shock Reduced productivity/poor performance

Strain on family relationships Early assignment terminationand turnover

Divorce Failed projects or missed goals

Misunderstandings with members of host culture

Lost opportunities/revenue

Anxiety and stress over daily life Damaged reputations, negative effect on employment branding

Long-term career damage due to unsuccessful assignment

Employee replacement costs

Source: Vangent, Inc. ,2008

Globalization: Negative Outcomes of Poor Expatriate Fit

Differences Between: Intercultural Communication, International Business, and International Management

Intercultural

Communication

International

Business

International

Management

Socio-psychological Perspective Commercial Transactions

Perspective

Human Resource Management

Perspective

Leadership development

through: improving self-

awareness and reflection;

developing stronger human

communication skill-sets;

developing ability to both

analyze and perform in

ambiguous situations

Private and governmental

transactions through: sales,

logistics, investments,

transportation, manufacturing,

trade, international financial and

accounting practices, risk

management

Planning, organizing, staffing,

coordinating, controlling in all

aspects of human resource

management, including business

practices, negotiations and

decision making

This module gets at the intra-personal and interpersonal aspects of performing international business and international

management – performance depends on your inner work, which is the antecedent to doing business.

Cultural Faux Pas or Egregious Error?

Chinese: 入乡随俗 OR 入江隨曲

Swedish: Ta seden dit man kommer. ("Take to the custom

from where you're at")

Russian: с волками жить — по-волчьи выть (s volkámi žit’ - po-

vólč’i vyt’) (to live amongst

wolves, you should howl like a wolf),

Summary

• The shrinking world has become cliché in recent times because the world is not shrinking; it has already shrunk…and become more complex! Because of the ease of travel, communication, and movement of goods, services, and people, globalization has created the need for better communication across cultures.

• CQ needs to be developed in each of us as we examine our CQ Strategy, CQ Knowledge, CQ Motivation, and CQ Behavior.

• Most people think they are better at things than they really are. Global leadership development means improving self-awareness and reflection; developing stronger human communication skill-sets; developing ability to both analyze and perform in ambiguous situations.

• This course gets at the intra-personal and interpersonal aspects of “doing” international business and international management – performance depends on your inner work, which is the antecedent to doing business.

Whether we do business across borders or within our own communities, chances are that we interact with at least someone who does not share the same language or background.