You can have an advanced degree and succeed in many careers with the ability to learn, understand, and apply knowledge. However, that doesn’t necessarily mean you’ll further yourself, especially on a global scale, unless you also develop cultural intelligence.
Simply put, if and when you’re looking to expand abroad, you must determine whether your business idea is viable and appreciated in a particular country — or else you increase your chances of failure. Specifically, this includes conducting market research that reflects the local market.
To do so, you need to be able to effectively partner with someone who can help you with any language barriers. Doing any one of these tasks requires a high level of cultural intelligence in the areas of communication, negotiation, decision-making, and relationship-building.
Effective Cross-Cultural Communication
Clear communication is always important, but it’s easy to forget the subtleties of communicating across cultures. While you may be able to discern what your counterpart or translator is saying, also note their body language and be mindful of culture-specific nuances. Your business partner might be saying “maybe” to your suggestions for starting a project or setting up another meeting, but keep in mind, in other cultures, that might be a polite way of giving you a cold, hard “no.” When working somewhere new and foreign, take the time to learn the language and culture to ensure you’re able to communicate effectively. Over time, this becomes easier and can be done skillfully, as East West Bank Chairman and CEO Dominic Ng demonstrates in his experience leading the Pasadena-based bank and navigating diverse international markets.
Negotiation Strategies for Global Business
Communication undoubtedly plays a huge part in being able to negotiate across cultures, but you also need to understand the opposite party’s approach at the bargaining table. Does this culture act quickly or does it take its time, going through seemingly small rituals and drawing out the process as a way to give itself more time to get to know you? Is there a certain hierarchy that needs to be respected? Or do you need to build relationships with additional stakeholders? Grasping other perspectives well in advance helps ensure you don’t make any seemingly minor faux pas that cost you an opportunity.
Culturally Sensitive Decision-Making
From how you interact with your team to how you proceed with project plans, cultural intelligence comes into play as you leverage your cultural insights to make even the smallest of decisions. You need to ensure each decision positively affects all employees, clients, partners, and stakeholders. This can be tricky when there is cultural diversity. With a high level of cultural intelligence, however, you may be able to anticipate challenges that could arise and begin working on a solution in advance.
Relationship-Building Across Borders
Creating and nurturing relationships can be difficult, especially when cultural differences are at play. While technology has made language barriers almost nonexistent, in relationships, we again see why cultural intelligence is vital. Indeed, communication goes beyond mere words and vocabulary. That’s why educating yourself on cultural nuances, especially in business, will give you a huge advantage in building relationships with potential business partners or clients.
In a world increasingly interconnected, having a high level of cultural intelligence is essential in global business. Using these soft skills, leaders can create a better business environment and drive innovation while fostering solid relationships across the globe.
