Intercultural Intelligence

Enhancing Relationships, Collaboration, and Teaming in Global Business

Intercultural Intelligence (ICI) is essential for effective collaboration and leadership in today's global business environment. Cultural differences impact communication, decision-making, and teamwork; failing to manage them can lead to costly misalignments. However, navigating cultural diversity drives innovation, efficiency, and growth when leveraged effectively.

ICI is built on five key skills: contextual awareness, perspective-taking, style switching, cultural conversations, and cultural mentoring. These enable individuals and organizations to navigate diverse environments, foster inclusion, and enhance global operations.

To embed ICI, businesses must integrate cultural intelligence into leadership development, training, and strategic decision-making. By doing so, they can improve cross-cultural collaboration, mitigate risks, and unlock new opportunities in an increasingly interconnected world.

Introduction

In today's globalized world, businesses operate in culturally heterogeneous environments. Teams are culturally diverse, spanning multiple geographies and reflecting a broad spectrum of worldviews, work styles, expectations, languages, and accents. That means that managers and leaders can no longer assume that their way of leading, communicating, and managing will produce the same results as in their "home" environment.

On the one hand, cultural differences increase the risk that miscommunication, conflicting expectations, and differing work styles negatively affect outcomes and performance. Unfortunately, this risk only gets noticed when it is too late to intervene and correct course.

On the other hand, when cultural differences are understood and managed well, they can significantly enhance business performance through growth, efficiency, and innovation. Embedding Intercultural Intelligence in an organization's ways of working makes the difference.

What is Intercultural Intelligence (ICI)?

We define Intercultural Intelligence as the ability to (a) recognize how culture shapes assumptions, expectations, choices, behaviors, and experiences and (b) use this awareness to build effective relationships. The two aspects of this definition are critical. It is not enough to become aware of cultural differences. We also need to translate awareness into skills and behavior. Frequently, though, efforts start and stop with awareness. That is simply not good enough! 

When we build awareness, we are focused on knowledge and insight. Essentially, it is an intellectual activity through which we learn to understand ourselves and others better. This can be a very rich and satisfying outcome. Unfortunately, it does not automatically translate into the ability to develop better relationships. That requires experimentation, practice with skilled guidance, and tutelage—a different kind of work that can be personally challenging and uncomfortable. Just like knowing how a car works, it does not make us good drivers.  

We have identified five specific skills through which intercultural intelligence is realized: contextual awareness, perspective-taking, style switching, cultural dialoguing, and cultural mentoring. 

Let's explore them more closely:

1. Contextual Awareness

Contextual Awareness is the starting point in developing the skill of Intercultural Intelligence. It is the ability to perceive, understand, and appropriately respond to the surrounding environment, including social, physical, and situational factors that are shaped by culture.

This skill is based on the insight that what people consider appropriate, relevant, or meaningful in a given situation results from their cultural conditioning. Without this skill as a foundation, people misunderstand social norms, misinterpret signals, or act in ways that seem inappropriate and counterproductive to their intent in a different cultural setting.

When exploring the connection of culture and context, it is essential to keep in mind that:

• The ideas of "culture" and "nationality" are not synonymous, and the concept of "national culture" based on a given country is somewhat imprecise. It can lead to unhelpful stereotyping and stigmatization. Nationality and the boundaries between nations are political in nature, not cultural. The idea of a uniform culture corresponding to political boundaries can be highly misleading.
• At best, statements about national culture are descriptions of general tendencies that are safer to assume than expecting behavior to conform to one's cultural environment. It is a more prudent initial hypothesis about how one should be prepared. In that sense, indexing differences by national culture helps prevent ethnocentrism and is a sensible risk management strategy.
• We suggest defining culture as the "situational pattern of thinking, feeling, and acting that tends to be expected, reinforced, and rewarded by and within a particular group of people." This recognizes culture as a group- and ground-level phenomenon, not one tied to abstract notions of nationality. Therefore, this definition can be applied to a broad spectrum of human social organizations, including communities, families, organizations, teams, business functions, and the cultural conditioning between two individuals in their interactions and relationships.
• Cultural patterns are dynamic and respond to external influences and changes. In essence, they are dynamically stable systems that, when disturbed from their relative equilibrium, return to a somewhat balanced state rather than diverging or collapsing. This stability results from feedback loops and other adaptive adjustments that counteract disruptions. Culture adapts to change while maintaining a core structure, ensuring resilience, functionality, and enabling adaptability.

Contextual Awareness that underpins intercultural intelligence is vast and easily overwhelming. This is why it is helpful to leverage empirically validated frameworks that can cut through complexity and alert us to key differences, i.e., the initial hypotheses mentioned above. Fortunately, several frameworks provide nonjudgmental language to describe differences and similarities. Most are built upon standard and well-established dimensions of cultural differences.¹

For example, we can distinguish between higher-context cultures (like Japan or Saudi Arabia), where much of the meaning in communication is embedded in nonverbal cues and relationships and implicit in references, symbols, and norms. Contextual awareness means picking up on subtle hints, hierarchy, and implicit messages. In contrast, in more low-context cultures (like Germany or the U.S.), meaning is conveyed more explicitly through words, so contextual awareness involves paying close attention to direct speech and clearly stated rules.

In addition to the cultural orientations of high and low context, we recommend leveraging task-relationship orientations, fixed-fluid time, direct-indirect conflict handling, hierarchy-equality orientation, group-individual orientation, and structure-flexibility orientation as a starting point.

2. Perspective-Taking

Perspective-taking is recognizing, understanding, and considering another person's thoughts, feelings, and viewpoints, particularly when they differ from one's own. Davis (1983) describes it as the ability "to spontaneously adopt the psychological point of view of others in everyday life." This definition is based on the observation that most of us already practice perspective-taking, particularly those with whom we are familiar and have a close relationship. 

In the context of intercultural intelligence, perspective-taking means the ability to understand the subjective perspective and experience that others may have of a situation whose cultural conditioning is different from ours. That requires empathy and the ability to contain multiple perspectives. 

Concretely, this means translating pure intellectual knowledge about high- and low-context cultures into the ability to imagine the subjective experience of others. A guiding question for this skill is, “What is it like to be the other and experience situations?” Only when we expand and sharpen our empathy will we be able to cultivate productive and effective relationships across cultural differences. After all, cultural differences are processed and manifested in and through subjective experience and emotional-cognitive frames. 

With respect to the cultural orientations mentioned above, we can ask:

• What is it like to experience communication in a high-context way? What is it like to receive communication in a low-context way?
• What is it like to give feedback directly? What is it like to give it indirectly? Under which circumstances would each be an effective way?
• What is the underlying motivation and driver of behavior in a task-oriented culture? What is it like in a relationship-oriented culture? What is the respective experience when they are mismatched?
• How does a group-oriented person experience individualistic ways of working? How might an individualistic person experience a strong group orientation?
• How do hierarchy-oriented individuals experience equality-oriented ways of working and leading? How would equality-oriented leaders experience a hierarchy-oriented culture?
• How do structure-oriented individuals experience flexibility and change? How do flexibility-oriented people experience structure?

Of course, developing the ability to see the world from multiple perspectives cannot be generated by introspection alone. Left to our own devices, we will likely project our biases and stereotypes in our responses. An effective way to develop perspective-taking is gathering input from interculturally experienced people, preferably people who are not directly involved and/or interested in the work, project, and/or assignment you are building intercultural intelligence.

All of the cultural misalignments described at the beginning of this article manifested at the level of evoking a subjective experience and/or response that was not apprehended or considered in advance. Only when we can empathically understand the experiences and motivations of others can we make decisions on how to best navigate the differences. The following two skills are style switching and cultural conversation.

3. Style Switching

Style switching refers to adapting one's communication style, behavior, or appearance based on different social or cultural contexts. Schmitz (2006) describes it as "the ability to employ a broad and flexible range of behaviors to achieve one's objectives, particularly in culturally diverse settings." Accordingly, style switching is a situation-specific strategy for applying contextual awareness and perspective-taking. It is different from "fitting in" or "assimilating" to a different cultural norm, as it is a temporary use of a different style because that style is conducive to achieving a specific outcome in a different cultural context.

A simple illustration is the presentation of business cards in Japan. Not only is the presentation of business cards an essential part of the greeting, but it also requires that the card is presented with both hands and a bow in the direction that allows the recipient to read the card and pronounce the presenter's name. When seated, the recipient is likely to order the cards in front of her/him in a way that mirrors everyone's seating arrangement. In this manner, the recipient can easily refer to and reference the names of all attendees. When we mirror this approach, we make our Japanese counterparts comfortable, creating a conducive context for a meeting.

When we then review the agenda that had previously been shared and adhere to it meticulously; when we speak in a manner that is easily understood by non-native English speakers (or through an interpreter); when we use slides that are graphically intuitive to the audience and have been previously sent so that they can be studied (and translated) in advance; when we introduce no surprises into the meeting and communicate with a sense of formality; when we are not expecting everyone to speak; and when we are prepared to socialize extensively, including Karaoke, after the meeting to build trust and receive questions and feedback then (and not in the formal meetings in the office), we are style switching. We do so because we understand that we are working in an environment where trust-building requires adherence to structure and a group orientation.

The above is a good example of the nature of style switching when we initiate relationships with Japanese counterparts and when our objective is to develop rapport and trust as the foundation for a productive business relationship. It illustrates some key aspects of style switching:

• It requires us to temporarily abandon our style (or way of doing things) when we recognize that it is not helping us achieve our desired outcome.
• It is a pragmatic and temporary strategy to communicate your original intention when that intention is best communicated through a different behavioral expression.
• It is not assimilation (i.e., the permanent abandonment of one's habits to fit in with another group or context).
• It aims to reduce the discomfort of your counterpart, not to reduce your own discomfort.

Innumerable situations benefit from style switching. How it applies to your challenges and opportunities is best discovered through a personal consultation. However, another example may illustrate both its value and its complications. 

Imagine, for instance, a situation where we understand that communicating a difficult message directly and straightforwardly that is "normal” in our own culture may significantly damage a valuable relationship and may reflect on ourselves as crude, insensitive, and unprofessional. In such a situation, style switching protects not only the relationship but also our own reputation and credibility.

Suppose you are raised in a more direct culture and are used to navigating situations in a straightforward and, from your perspective, “honest” way. In that case, you may look at this list and find it hard to comprehend the value of these strategies and take ethical concerns about applying them. It is imperative to explore, consider, and, most importantly, practice the behavioral modifications you may want to consider. This requires a reliable and experienced guide on your side.

However, style switching is not the only strategy, nor is it always the wisest one. It is, however, the most productive when your counterpart's change of customary approach is situationally unreasonable or unreadable.

4. Cultural Dialoguing

Cultural dialoguing is an open exploration and respectful exchange of the differences and similarities - beliefs, perceptions, values, perspectives, and behaviors - between individuals or groups from different cultural backgrounds. The purpose of cultural conversations is to deepen mutual understanding and co-develop an inclusive way of working and engaging together. It is a form of meta-conversation/dialogue through which productive, shared ways of working can be established and visualized.

Cultural dialoguing is particularly advisable when it is unclear which cultural norms apply, such as in multicultural teams, globally operating organizations, or in partnerships, collaborations, and joint ventures between multiple parties from different cultural backgrounds and traditions.

Engaging in cultural conversations helps reduce misunderstandings, builds bridges between cultures, and expedites intercultural conflict or storming. This phase is inevitable in teaming and collaboration in a culturally diverse context. Cultural dialogue requires intentionality, sensitivity, and an understanding of the complexities of intercultural interactions. Here are some key considerations:

• Mindset: Openness and genuine curiosity are essential to mutual learning rather than convincing or " correcting” others. This requires acknowledging that no single culture holds all the answers and that every culture has unique wisdom to offer.
• Communication: Practice empathic listening and avoid listening only to respond. Try to grasp the deeper meanings behind words, including nuances. Pay attention to body language, tone, and pauses, as they may carry different meanings across cultures. Paraphrase, ask open-ended questions, and encourage others to clarify their points.
• Moving insights to action: Culture conversations should move groups beyond words to envision and agree on inclusive ways of working. These agreements ideally also include how the group will handle slip-ups and re-calibrate its way of working.

Cultural conversations are highly effective in preventing and/or minimizing the risk of cultural misalignment, which is why we started this article. They are also excellent ways to respond to intercultural mishaps and conflicts. Initiating and facilitating them are essential skills.

5. Cultural Mentoring

Cultural mentoring is when an experienced individual (the mentor) guides another person (the mentee) in understanding and navigating different cultural contexts. This guidance can be crucial for individuals moving to a new country, working in multicultural teams, or engaging in cross-cultural partnerships. Cultural mentors help mentees develop awareness of cultural norms, values, communication styles, and social expectations, fostering deeper intercultural competence and adaptability.

Unlike formal training programs, cultural mentoring is often personalized and experiential, allowing mentees to gain practical insights through real-world interactions and ongoing dialogue. This is why developing intercultural intelligence culminates in cultural mentoring, as it requires significant experience with contextual awareness, perspective-taking, style switching, and culture conversations to be an effective cultural mentor.

Cultural mentoring is helpful because it can bridge cultural gaps and reduce misunderstandings in diverse environments. For businesses and organizations, cultural mentoring can enhance teamwork, improve collaboration across borders, and support the success of international assignments. It also helps individuals avoid common cultural pitfalls, such as miscommunication or unintended offenses, by equipping them with nuanced knowledge and strategies for effective intercultural engagement. Furthermore, cultural mentoring fosters empathy and open-mindedness, helping mentees appreciate diverse perspectives rather than simply adapting for practical reasons.

Mentors help individuals feel more confident and connected in unfamiliar cultural landscapes by providing guidance and a support system. Ultimately, cultural mentoring benefits the mentee and enriches the mentor's understanding of their own cultural assumptions, leading to a more inclusive and interculturally intelligent organization.

Developing and Embedding Intercultural Intelligence

When pharmaceutical companies expand internationally, they must navigate complex cultural landscapes involving governmental health departments, regulatory bodies, hospitals, physicians, and partner organizations conducting clinical trials. Developing and embedding Intercultural Intelligence into the company's ways of working is essential to building trust, ensuring compliance, and fostering successful collaborations.  

To equip employees with the skills to operate effectively across cultures, training is key and should focus on:

• Country-specific intercultural intelligence training
• Country-specific healthcare regulations, ethics, and cultural expectations for employees interacting with government agencies.
• Culturally sensitive negotiation strategies when engaging with health ministries.
• Varying physician-patient dynamics, decision-making hierarchies, and ethical considerations across cultures.
• Appropriate ways to present medical data to different audiences, from government regulators to hospital decision-makers

Additionally, embedding Cultural Intelligence into leadership development is critical. This approach is focused on managing diverse, globally dispersed teams, equipping managers with cultural adaptability, conflict resolution, and inclusive decision-making skills, and supporting teams in developing interculturally inclusive ways of working.

Footnotes

1. There are numerous cultural frameworks that have been developed on the basis of cultural value orientations that have been identified by social scientists, including Hofstede, Trompenaars, and Hall. These frameworks include the Cultural Orientations Indicator (COI) embedded in the Cultural Navigator, the Globesmart Assessment Profile provided by Globesmart, the GLOBE study, and also Erin Meyer’s Culture Map. 

References

• Davis, M. H. (1983). Measuring individual differences in empathy: Evidence for a multidimensional approach. Journal of Personality and Social Psychology, 44(1), 113–126.
• Hall, E. T. (1989). Beyond Culture. New York: Anchor Books.
• House, R. Hanges, P. Javidan, M, Dorfman, P., Gupta, V.  (2015) Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies. Thousand Oaks, CA: Sage)
• Laurent, A. The Cross-Cultural Puzzle of International Human Resource Management, Human Resources Management 25, no 1 (Spring 1986):91-102.
• Meyer, E. (2014). The Culture Map. Public Affairs.
• Putz, L., Schmitz, J.,  and Walch, K. (2010) Maximizing Business Results with the Strategic Performance Framework: The Cultural Orientations Guide. Princeton, NJ: Princeton Training Press.
• Schmitz, J. (2006). The Cultural Orientations Guide. Princeton, NJ: Princeton Training Press.
• Trompenaars, F., and Hampden-Turner, C. (1998) Riding the Waves of Culture: Understanding Diversity in Global Business (2nd edition). New York: McGraw-Hill.