The economic climate and globalisation has made industries more competitive so it is vital for organisations to have the right international skill set.  With the challenges of new markets, globally distributed remote teams,  the enormous changes happening in the workplace where people of all different nationalities are thrown together and different communication styles across the globe, it’s a sure bet that CULTURAL DIVERSITY is today’s business reality.  Our future clients and colleagues will be more likely to want to do business with us if we can demonstrate an authentic understanding for their culture, business needs and communications styles. You cannot afford to get things wrong!  International managers armed only with easy-to-learn, fast-to-recall cultural dimensions and differences will find themselves stereotype rich and operationally poor in today’s business reality of complex cultural organisations and culturally diverse customers. Ensure a positive difference for your business performance ,as well as for the people within it, by learning how to embrace cultural diversity profitably!

I recently suggested that Barack Obama could be seen as a role model for Cultural Intelligence, but it is not only the Leader of the U.S. that needs this but all of the Leaders of our culturally complex companies. Leaders will need to develop intercultural communication skills and a new skill set  for deep contextual understanding of what takes place when people interact across several kinds of cultural differences in a modern global company. They will need to develop a Cultural Intelligence based on a deep sensitivtiy that enables them to value, motivate and mobilise culturally distinctive workforces. They will also need the ability to be open to new ideas and practices, loosening boundaries and finding creative ways to integrate new ideas ‘back at base’. There are exciting challenges ahead for all those who manager culturally complex organisations. Remember though: good intercultural communication is not only for ‘over there,’ overseas or in foreign parts – it’s also for here on our doorstep – with our customers and staff from many diverse backgrounds. Cultural Diversity is everywhere.

In working with an international firm in Madrid recently, I was reminded of
the complexities of intercultural collaboration in global teams when working with virtual working arrangements.  Although we can understand certain cultural differences in working patterns and cross-cultural communication styles, it is inevitably the little things that trip us up unexpectedly…

Marks & Spencer has just learned how expensive the transaction costs in international business are when you don’t do your homework properly. The opening of the first Marks & Spencer store on the Chinese mainland has been beset by many cultural problems – most of which could have been foreseen with a little research.  One of the most costly though was their complete lack of Market Research. Sir Stuart Rose, executive chairman of Marks & Spencer, admitted that the company “had misunderstood the local market” by assuming Hong Kong sizing would also apply to the mainland. “Shanghai clothing sizes were based on Hong Kong sizing, but the smaller sizes rapidly sold out” he explained. (FT February 10th 2009). Remember to do your cultural research – you can’t afford to get things wrong!

The election of Barack Obama must be a turning point in history as we can never go back to a time where being President of the USA is solely a job for white men. It is interesting to debate and reflect on what influence this will have on the intercultural field and on cultural diversity issues. Undoubtedly he seems to have a natural ability to mix and match with his fellow human beings in a way that George Bush could never dream of.  His skin colour, minority background, intelligence and genuine respect for others of difference has him being a role model for someone with Cultural Intelligence – long may he live up to this – there are so few people around who can.

The cultural difficulties concerning the failed merger between Daimler and Chrysler are legendary, but not legendary enough it seems for Robert Diamond, president of Barclays Capital.  He found out the hard way that ignoring corporate culture can harm your business.  Eight weeks after the acquisition of Lehman Brothers’ US business much of the senior talent had left. Mr. Diamond’s famous ‘knee-jerk’ approach of getting rid of non-team players did not sit well with those he wished most to keep: “That approach is a style that is anathema to many of Lehman’s senior bankers who Mr. Diamond wants to retain, as well as the European bankers he’d like to attract” (FT November 3rd 2008).  It seems Mr Diamond has fallen foul of the first rule of an M&A – it’s people that make a business, it’s people you ‘buy’, and it’s people that are your most important asset – make sure you understand what makes them tick! Ignore culture at your peril.