Modern economy is global in nature and so are the companies and people operating in it. Globalization is the byproduct of this modern growing economy. It has enabled the free movement of people, goods and services across the globe. And it is only going to increase in the coming decades.

Technology and internet will continue to bring people and cultures more closer.

The need for managers and leaders to understand the cultural differences between nations and how different cultures work has been never been greater. Cultural Intelligence (CQ) might just be as important as Emotional Intelligence (EQ). And it's importance is growing in our multi-cultural world.

But what is Cultural Intelligence and why is it so important?

It is the skill to relate and work effectively in culturally diverse situations. It's the capability to be aware on our and other's cultural heritages that we bring knowingly or unknowing to our workplaces. It is the ability to cross boundaries and prosper in multiple cultures. It is also the ability to survive and thrive in a complex world.

In this globally connected world, most of us (if not all) work in organizations and companies operating in different corners of the globe. Our day to day job involves working closely with our colleagues from other cultures as well. And to a large extent our success is tied to the way we collaborate and accomplish things together. How we communicate and understand each other. Be it a project , a product launch, a sales initiative, a competition or a bidding process.

If you have ever worked internationally or for a multinational company in your own country, you would need to interact, collaborate and team up with people from other cultures. This is inevitable.

I can vouch for it personally. For the last seven years I worked in Hong Kong. And during my time here I have worked with various colleagues, teammates either directly or indirectly from different nationalities and cultures. From Hong Kong (Chinese) to French, German, American, Vietnamese, Korean, Singaporean, Japanese, Philippines, English and Australians and many more. Each culture is slightly different and each person does things slightly differently. Some would disagree differently and some would negotiate differently. Some have different parameters of trust and others have different ways of deciding on things.

At first, it was very difficult and daunting. I had my blunders too (like when I offended a Chinese colleague with some very direct feedback), but slowly we learned about each other’s differences and moved towards understanding. I still had to get the work done and keep moving.

So I designed a reframe. And it was to understand first if our goals are aligned. If both of us want to achieve same things but in different ways? If that’s true then move to the next step. Then look at all conversations and interactions with an open mind. What can I learn about others and in fact what it could teach me about my own biases and cultural dependencies or cultural style. Every time I faced a cultural challenge I try to think of this reframe.

Each interaction and each conversation over the years taught me different things. Sometimes it is still hard for me to get around collaborating but that’s fine. I have had my share of success and it’s a work in progress.

But working internationally or in a multinational organization has its fair share of pain also.

Consider this example below. It looks quite real and many of us can partly relate to it as well.

A German, a Canadian, and a Japanese person all on the same call. The cultures are so different that the interactions can quickly go awry. The German will be the most abrupt, seeming to interrupt, being totally blunt, and not realizing he could offend. The Japanese will be the quietest, waiting to ask their turn to speak, sometimes having an underlying meaning behind the words that isn't blunt, and being very careful to not offend. The Canadian will be in the middle. What could happen is that the Japanese person finds the German to be rude and bad mannered. The German will think the Japanese person not forceful, not direct enough.

The reality is, we all have different cultural heritages which overlay our perceptions that we aren't fully aware of.

Cultural differences can have a massive impact on how people communicate with each other and perceive those around them. Even within the same geographical areas, differences can be quite significant. I come from India and trust me people in all states are not the same culturally. People in northern states and southern states are by no means the same. Just like French and Germans are by no means the same … ask them, they will both agree.

To solve this problem I think we all should use some reframe or technique. But only reframes ( such as the one I am using ) are not enough because cultural issues can become complicated than we imagine in some situations. And it can have significant impact on business and outcomes. So I also depend use Erin Meyer’s Cultural map and the tools she shared in detail.

The book written by Erin Meyer called The Culture Map: Breaking Through the Invisible Boundaries of Global Business has brilliantly described this topic. It outlines a system for comparing one national culture to another on set of behavioral scales. It looks at issues like how much employees defer to the boss in different countries, how decisions are made in different parts of the world, how we build trust differently in different cultures and most important, how candid versus diplomatic people tend to be with critical feedback around the globe.

And it has 8 scales where each scale represents a key area, showing how cultures vary along the spectrum from one extreme to the other.

The Eight Scales

Each of the eight scales is described as a continuum between the two ends which are diametric opposite or at least competing positions as follows:

• Communicating – Are they low-context (simple, verbose and clear), or high-context (rich deep meaning in interactions)?

• Evaluating – When giving Negative feedback does one give it directly, or prefer being indirect and discreet?

• Leading – Are people in groups egalitarian, or do they prefer hierarchy?

• Deciding – Are decisions made in consensus, or made top-down?

• Trusting – Do people base trust on how well they know each other, or how well they do work together?

• Disagreeing – Are disagreements tackled directly, or do people prefer to avoid confrontations?

• Scheduling – Do they perceive time as absolute linear points, or consider it a flexible range?

• Persuading – Do they like to hear specific cases and examples, or prefer holistic detailed explanations?

Moreover there are several culture maps which one can use depending on your own nationality and the other cultures he/she regularly deals with. It is available on the website.

I have got some of the culture maps on these 8 scales and I think these are very useful. Have a look.

Another good resource on Global Cultural Change is the book No Rules Rules Netflix and the Culture of Reinvention. Also cowritten by Erin Meyer and Netflix CEO Reed Hastings. It details the early days of Netflix Global Expansion around 2015-16. Especially Section 4 : Going Global. It brilliantly describes how Netflix learnt the lessons and used Erin’s culture maps effectively during their global expansion in Europe and Asia which were different cultures from the US Corporate Culture. It is very good and have enough examples and lessons for any multinational company facing the same difficulty.

To conclude I would say, on an individual level , to cultivate Cultural Intelligence we have to start with empathy. And we all have to first attempt to understand our own cultural biases. Suspend judgment and be open to differences. Our willingness and ability to learn from cultural differences is the first step forward.