What is Cultural Intelligence and Why Does it Matter?

This is the first article in a three-part series on cultural intelligence.

What is cultural intelligence (CQ)?

We all know that IQ is a measure of intelligence. If you caught the series of articles I published last year on emotional intelligence, you'll also know that EQ is your awareness and management of emotions. But have you heard of cultural intelligence? CQ is your capability to function effectively in culturally diverse settings (Van Dyne et al., 295). It includes your willingness to enter into different cultures, your understanding of cultural factors and their effects, and your ability to adjust your behaviour accordingly. As global thinker and author David Livermore wrote:

‘Cultural intelligence picks up where EQ leaves off by dealing with people and circumstances in unfamiliar contexts. Cultural intelligence measures the ability to move seamlessly in and out of a variety of cultural contexts (Livermore, 47).’

We'll go into more detail about the specifics of cultural intelligence in our next article, but for now, let's consider why it should matter to you and your organisation.

Why does cultural intelligence matter?

'As globalisation has rendered the business environment more complex, dynamic, and competitive, the ability to function effectively in different cultural contexts, called Cultural Intelligence (CQ), has never been more important for organisations.' (IESE Business School)

CQ is more relevant than ever for organisations in an increasingly globalised world. But it isn't only for international companies or ones with worldwide client bases. Cultures and sub-cultures exist within countries, cities, and even organisations. Interacting with other organisations, working with other departments, and selling to different businesses can all be cross-cultural experiences of a kind (Earley & Mosakowski). So while these articles will mainly address traditional cross-cultural contexts, being culturally intelligent will enable you to work more effectively no matter your organisation or your position.

As a leader, you're likely to work in a variety of teams, under a variety of employers, and in a variety of locations throughout your career—even within the same organisation. As you attempt to adjust to new cultures and environments, lacking CQ can be a real disadvantage. Research shows that higher CQ is correlated with positive outcomes including better performance and adaption for workers in cross-cultural settings, strong global leadership, improved cross-cultural negotiation, and more diverse teams (Van Dyne et al., 296). Case studies at the Cultural Intelligence Centre add to this evidence of better teams and increased customer satisfaction, cost-saving, productivity, and global performance.

Having diverse teams in your organisation can have huge benefits—better decision making, greater creativity and innovation, and more successful marketing to diverse customers, among others. But at the same time, diversity can be challenging. It can lead to higher employee turnover, interpersonal conflict, and breakdowns in communication (Cox, 34). The key difference between diverse teams that thrive and diverse teams that suffer is CQ. As Livermore states:

“Diversity itself does not lead to better solutions. In fact, when cultural intelligence levels are low, diverse teams underperform homogenous teams. But when cultural intelligence levels are high, diverse teams outperform homogenous teams on pretty much every measurement—profitability, productivity, cost saving, innovation, cost saving—on a whole, they come up with better solutions.” (David Livermore for the Cultural Intelligence Centre)

Individuals with high CQ bridge divides and transfer knowledge between disparate groups, they help to build relationships and efficiency in multicultural workplaces, and they bolster innovation and progress by encouraging diverse input (IESI Business School).

Whether you work internationally, serve a multicultural client base, or simply experience diversity in your workplace, improving your CQ will help you to do what you do effectively and efficiently and create an environment where others can do the same.

References

T Cox, ‘The Multicultural Organisation,’ Academy of Management Executive, vol. 5, no. 2, 1991, pp. 34-47.

Cultural Intelligence Centre, https://culturalq.com/

P C Earley & E Mosakowski, ‘Cultural Intelligence,’ Harvard Business Review, https://hbr.org/2004/10/cultural-intelligence

IESE Business School, ‘Cultural Intelligence (And How to Develop It),’ Forbes, 2015, https://www.forbes.com/sites/iese/2015/03/24/why-you-need-cultural-intelligence-and-how-to-develop-it/#43e1bbfc17d6

D Livermore, Cultural Intelligence: Improving your CQ to Engage Our Multicultural World, Baker Academic, Michigan, 2009.

L Van Dyne, S Ang, K Y Ng, T Rockstuhl, M L Tang, & C Koh, ‘Sub-Dimensions of the Four Factor Model of Cultural Intelligence: Expanding the Conceptualization and Measurement of Cultural Intelligence,’ Social and Personality Psychology Compass, vol. 6, no. 4, 2012, pp. 295-313.