This series is edited by Dick Locke, SI’s resident expert on International Trade, author of “Global Supply Management — A Guide to International Procurement” (which was the definitive guide for almost a decade), and President of the Global Procurement Group and Global Supply Training which regularly gives seminars on International Trade and working with International Cultures.

As per Wikipedia, cultural intelligence, also knows as cultural quotient or CQ, is a theory that posits that the ability to understand the impact of an individual’s cultural background on their behavior is essential for effective business. However, for our purposes, we can more practically define cultural intelligence as an individual’s ability to understand the set of shared attitudes, values, goals, practices, qualities, and beliefs regarding daily interaction, manners, arts, and worthwhile pursuits for a characterizeable group of people and to effectively use that understanding in the individual’s interaction with members of the characterizeable group of people, consistent with our definition of culture in the first post.

So how do you become culturally intelligent? A number of authors have put forward a number of theories, as can be easily deduced by a search for cultural intelligence on Amazon.com which returns approximately 290 results, but one of the simplest theories is that put forward by Thomas and Inkson in their introductory text on Cultural Intelligence. Since the simplest theory is usually best one, as per the KISS principle, it is the one we’re going to discuss.

According to Thomas and Inkson, cultural intelligence has three parts:

• Knowledgeof what culture is, how cultures vary, and how culture affects behavior,
• Mindfulnessto verbal and non-verbal cues in cross-cultural situations, and
• Behavioral Skillsthat allow the individual to act and respond competently across a wide range of situations.

Each part interacts with, and reinforces, the other. Knowledge leads to mindfulness which improves behavioral skills that allow the individual to cue into more verbal and non-verbal clues in a cross-cultural encounter that increases the individual’s knowledge and starts the cycle all over again, allowing the individual to progress through on cultural journey through the developmental stages of CQ.

An individual who wants to obtain a high CQ in other cultures will need to progress through the five stages of CQ, which are:

1. Reactivity to External Stimuliwhere the individual does not even recognize that cultural differences exist and mindlessly adheres to the individual’s own cultural rules and norms.
2. Recognition of Other Cultural Normswhere the individual becomes aware of the multi-cultural mosaic that surrounds us all and becomes interested in learning more about other cultures.
3. Accommodation of Other Cultural Normswhere the individual begins to recognize that there are different cultural situations, that there are appropriate responses to those situations, and that the individual must try to respond appropriately. Responses are slow and awkward, but mastery of certain behavioral skills is beginning.
4. Assimilation of Diverse Cultural Norms into Alternative Behaviorsas the individual is now able to adjust to different situations without much effort due to a wide range of behavior skills at their disposal. The individual can now function in multiple cultures almost effortlessly and do so without discomfort.
5. Proactivity in Cultural Behavior based on Recognition of Changing Cues that Others Do Not Perceivewhere the individual is able to adjust their behavioral responses automatically in anticipation of what is to come.

In order to truly be successful in international negotiations, you have to at least reach stage 4, and if you want be the go-to master, you need to reach stage 5. Of course, as Mr. Locke will attest to, reaching stage 5 will take a significant amount of time and effort^*, and possibly an expatriate assignment or two, but it will be worth it in the end.

So how do you get there? Start with the tips offered by Thomas and Inkson and focus on improving your:

• Integrityor a well-developed sense of self and an understanding of how your beliefs motivate your behaviors,
• Opennessby becoming more humble and more inquisitive, and
• Hardinessand increase your robustness, courage, intrepidness, and overall capability to survive unfavorable conditions.

Finally, become aware of the verbal and non-verbal nuances of the culture that surrounds you. After all, one of the biggest failures when it comes to international business is failing to understand the thought processes and motivations of the locals. Just knowing the language is not enough. In the next seven posts, we’ll address some of the verbal and non-verbal nuances that you should be aware of in the Chinese, German, Indian, Japanese, Korean, Mexican, and Thai cultures. Namely, we’ll cover directness, verbosity, and volume on the verbal side as well as distance, touching, body position, gestures, facial expressions, eye contact and emotions and the non-verbal side. We’ll also highlight a few rules surrounding meetings, meals, and negotiations to get you started on preparing for your international assignments. Then, for those of you leading the charge, I’ll recommend taking a preparatory seminar, like the ones offered by the Global Procurement Group, which are developed and delivered under the supervision of Dick Locke, who has headed Supply Management organizations in Canada, France, German, Israel, Japan, Korea, Mexico, Singapore, Taiwan, the United Kingdom, and the United States and dealt with over two dozen global cultures on a regular basis during his Supply Management career.

^* Probably at least 4 or 5 years, as the current theory is that it takes at least 10,000 hours of practice to master a skill, but once you’ve mastered one culture, mastering similar cultures (in the same geographic region) will take less time as many rules and behavioral responses will be similar (i.e. Upper North America, South East Asia, and other geographic areas have similar cultures in each representative country).

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A young American man devoted a lot of attention to a Japanese woman visiting his community, including extreme courtesy — taking her arm to cross the street, and so on. The young woman later told her friends excitedly that she now had an American boyfriend. In fact the American, who was from the deep south of the United States where many families pride themselves on effusive courtesy, was not interested in the Japanese girl as a prospective girlfriend. He had merely tried to be polite, in a manner that came naturally to him in his own in-group. Unfortunately, the same manner of behavior practice by a member of the Japanese woman’s in-group would definitely have been evidence of a romantic interest.

from Cultural Intelligence by David C. Thomas and Kerr Inkson

Without cultural intelligence, we are just as likely as the man in the above scenario to take actions that will be interpreted completely opposite to our intent by the other parties. So what is cultural intelligence? Succinctly, it’s an individual’s ability to engage successfully in any environment or social setting with other individuals of varied cultural backgrounds. But what does this mean? It means that we have to recognize our cultural failures and overcome them.

What kind of cultural failures? The kind pointed out by Thomas and Inkson, namely:

• our obliviousness to the key features and biases of our culture,
• our uneasiness when interacting with those who are culturally different,
• our inability to explain the behaviour of others who are culturally different,
• our failure to recognize knowledge that can be transferred from one culture to another,
• our lack of awareness when our culture is influencing our behavior, and
• our inability to adjust when living and working in another culture.

Once we recognize these failings, we understand the need to become more culturally intelligent, to increase our CQ or cultural quotient. We can start by switching off cultural cruise control and becoming more mindful of our cultural interactions. Namely, we can:

• become aware of our own assumptions and ideas,
• tune into the assumptions and ideas of others by noticing what is apparent about their actions,
• use all of our senses to perceive a situation,
• view a scenario from multiple perspectives,
• become aware of the context of the interaction,
• create mental maps of the personalities and backgrounds of others to assist us,
• seek out fresh information to correct and confirm the mental maps, and
• develop empathy for the other person.

Once we do this, we are well on our way to becoming culturally intelligent, a state of being that we will discuss further in the next post. In the interim, I would encourage you to refer to Thomas and Inkson’s introductory text on Cultural Intelligence or their follow up on Living and Working Globally. While the first book in particular does not contain much in the way of specifics for dealing with a particular culture, it’s a great start for those of you who want to get the right mindset necessary to become culturally intelligent.

This series is edited by Dick Locke, SI’s resident expert on International Trade, author of “Global Supply Management — A Guide to International Procurement” (which was the definitive guide for almost a decade), and President of the Global Procurement Group and Global Supply Training which regularly gives seminars on International Trade and working with International Cultures.

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This series is edited by Dick Locke, SI’s resident expert on International Trade, author of “Global Supply Management — A Guide to International Procurement” (which was the definitive guide for almost a decade), and President of the Global Procurement Group (and Global Supply Training) which regularly gives seminars on International Trade and working with International Cultures.

As per Wikipedia, culture is a term that has various meanings. For example, Alfred Kroeber and Clyde Kluckhohn compiled a list of 164 definitions of “culture” in “Culture: A Critical Review of Concepts and Definitions” on Questia.com.

For our purposes, we’ll define culture as the set of shared attitudes, values, goals, practices, qualities, and beliefs regarding daily interaction, manners, arts, and worthwhile pursuits for a characterizeable group of people.

Culture is important because, as noted by social scientist Geert Hofstede, it conditions individuals’ responses to their environment. Deeply embedded inside each of us, culture affects our mannerisms, our manner of speaking, our dress, and just about every other aspect of our personality. Since it deeply affects who we are, it affects the way we do business, and an understanding of different cultures is thus deeply important when conducting international trade.

Therefore, this series will continue what Dick and I started last year in Overcoming Cultural Distances in International Trade by not only defining what Cultural Intelligence is, but discussing some of the basics of cultural intelligence with respect to each of the seven countries we covered last year: China, Germany, India, Japan, (South) Korea, Mexico, and Thailand.

But first, we’ll discuss some characteristics of culture, as put forward by David C. Thomas and Kerr Inkson in their book Cultural Intelligence, People Skills for Global Business. Culture is:

• Sharedand people within a group have it in common, so even if each individual in the group has a distinct personality, each member of the group shares a common understanding
• Learned and Enduringas it is absorbed over long periods of time and deeply ingrained
• A Powerful Influence on Behavioras we have a natural tendency to revert to our cultural roots and it will unconsciously influence our decisions
• Systematic and Organizedand every value is contextually related to every other
• Largely Invisibleas the values and beliefs that define the culture are much deeper than the expressions of those values and beliefs.

Furthermore, its effects and behavior and decisions are many and varied. For example, it:

• Influences our Perceptionas it determines what we focus on in any given situation, and what we don’t; for example, some people will hang on your every word and ignore everything else about you while others won’t listen to a word you say while instead focussing on all of your non-verbal behaviors
• Defines our Categorizationand helps us place people into groups such as race, culture, country, ethnic background, and social status
• Creates our Stereotypesthat tell us what we should expect, right or wrong, from a person of a certain cultural background
• Specifies our Attributionsand determines our rationale for why people do what we do.

That last point is key, for if we assume that a response means yes when it actually means no, or vice versa, in our international pursuits, we’re just setting ourselves up for failure.

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