Category Archives: Knowledge Management

Cultural Intelligence II: Why We Need Cultural Intelligence

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.

Share This on Linked In

Cultural Intelligence I: An Introduction to Culture

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.

Share This on Linked In

Want To Improve Your Performance? Increase Your CQ!

A recent article over on the HBR blogs on “how your brain connects the future to the past” discussed some “recent studies” that suggest that the areas of memory that remember the past and the areas of creativity that imagine the future in your brain are almost one in the same. More specifically, the brain’s memory circuits are not merely for reflecting on the past but are also vital mechanisms for imagining, anticipating, and preparing for the future, a skill that each of use needs daily in this fast-paced knowledge-driven economy.

In the business world, it’s a distinct advantage to have a brain that anticipates future demands and negotiates them well because accurate predictions typically translate to success. A proactive brain that flexibly recombines details from past experiences that, by analogy with your current surroundings, help you make sense of where you are, anticipate what will come next, and successfully navigate the transition increases your performance. But how do you get a proactive brain?

The article provided some tips, which included:

  • thinking about your (organization’s) goals for the future,
  • giving your brain a rich bank of experiences, and
  • interacting with others.

In short, increasing your CQ will increase your performance. So what’s CQ? That’s the subject of a new 10-part series, edited by Dick Locke — SI’s resident expert on international trade, that starts tomorrow!

Share This on Linked In

Clean Data Is Good …

… but the ability to clean it on the fly is better!

Chain Link Research, which has been publishing some of the best thought leadership on Supply Chain Management in recent months, recently ran a piece on “contract and supplier management lessons” that summarized eight key lessons from their recent research. Seven of these are dead on and emphasize lessons I’ve been trying to impart for years (including a couple that still haven’t been learned by most of the space).

The eighth lesson, which states that data cleanliness cannot be overemphasized is correct, but overlooks the fundamental problem associated with data — it will never be 100% clean. Even if you have one hundred bodies manually reviewing and cleansing the data (which is exactly what you get if you buy a certain vendor’s solution, since that’s their unwritten strategy for dealing with all the transactions that their automated mapping algorithm is unable to classify), you’re not going to get it all right. First of all, data is always being added to the system — you’ll never be 100% up to date. Secondly, classifications need to change over time. And, most importantly, humans make mistakes and while they’ll fix some errors correctly, they’ll screw up other errors (which they may miss entirely).

The real to success is having a data analysis tool that allows you to fix an error in real time as soon as its spotted — not a traditional data warehouse where you have to wait weeks (or months) for the refresh. Then you can get away with 80% to 90% accuracy* (which is all you need to figure out where the problems really lie) because, if a supplier or customer spots an error in the data, you can say “sorry, let me fix that”, click on the transaction, click on the link that shows the rule that ultimately produced the mapping, and either (a) change the rule if it is wrong or (b) create a new exception (overlay) mapping rule if the mapping rule is normally right, but this is a special case. The report is updated, very little changes in the big picture, and you move on. That’s the way you do it.

* You can achieve this level of mapping accuracy in a matter of days, creating rules by hand, no matter how much data you have. All you have to do is apply the secret sauce of:

  1. Map the GL codes
  2. Map the top Vendors
  3. Map the Vendor + GL codes (for top Vendors who sell more than one Commodity)
  4. Map the Exceptions (for example, GL codes that always map to a particular Commodity)
  5. Map the Exceptions to the Exceptions**

** If your data is really bad or you have a really sophisticated categorization scheme.

Share This on Linked In

There’s No Intelligence Behind a Spreadsheet

Not even of the artificial kind. So please, kill those electronic cockroaches now before the infestation becomes so big that the only way to remove it is with enough C-4 to totally obliterate the entire office building.

So what set off this latest rant? Rich Wilson’s comment at the CPO Agenda roundtable in London this May on “budgeting for a wider influence” where he said:

We developed these powerful analytic capabilities that we have applied to high spend categories, but people weren’t using it. So what we have today is a device called RFxpress, for taking an ordinary Excel spreadsheet that is fed into the front end of our application and configuring it. In essence, it enables the user to have the full power of our analytics to invite suppliers at the push of a button and conduct bids over the internet.

BULLCRAP!

Spreadsheets are NOT an analytics tool. They’re a ledger, which can be used as a poor man’s tool for data capture, but not for manipulation, sharing, or collaboration. Why? For starters:

User Entry Can’t Be Controlled

Sure Excel allows a user to define the type of a field and even lets a user define a few macros to check and format data, but considering that another user’s environment might have macros disabled (and, like Office 2008 on Mac, might not even support VB macros) and that any user can override cell types, a user can literally enter anything they want if they have even one iota of technical proficiency.

Cells and Computations Can’t Truly Be Hidden

A…C…K? Better unhide those columns in case they are important! Hmmm … that calculation looks wrong. I don’t really understand it, but I’ll change it anyway.

Application Configuration Can’t Be Controlled

VB supported? Maybe, maybe not. Analytics add-on pack? Maybe, maybe not.Third party optimizer? Maybe, probably not. Etc.

Good Data Goes Bad And Nothing Can Be Done About It

Just like every cell division results in some sort of degradation, be it a shortening of telomeres, an RNA transcription error, or the wrong number of chromosomes, every time a spreadsheet is copied or propagated, new errors are introduced. (That’s why 80% to 90% of spreadsheets have serious errors!)

Freshness is Fleeting

Like a loaf of bread, a static spreadsheet goes stale and gets moldy quite quickly.

Version Control is Impossible

The organization can define all the naming conventions it wants, but people are human and even if they try to follow the standard, they’ll screw up and the repository will degrade quickly. Plus, what happens when two people work on the sheet at the same time and upload a new version at about the same time. Whose is right?

The Sheet Is Not Even Guaranteed to Load

The MS add-in interface is poorly specified and that add-in could easily blow up the sheet, and if the user is unlucky, her installation.

In other words, SPREADSHEETS = FAIL. Is that clear enough?

Share This on Linked In