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Page 1: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Cultural Intelligence

Page 2: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Change Your Circle | Change Your Life

Page 3: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

THE WORLD IS ROUND

Columbus to Queen Isabella and King Ferdinand of Spain 1492

Page 4: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

THE WORLD IS FLAT

Thomas Freidman to his wife in The World Is Flat: A Brief History of the Twenty-First Century 2014

Page 5: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Minimization is what happens when we take the "world is flat" idea too far...and act as if people everywhere are the same (and thereby minimizing the differences). Life is about things that transcend us.”

David Livermore, Leading with Cultural Intelligence: The New Secret to Success

Page 6: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

“We are in the 4th Industrial Revolution! The revolution is changing the nature of leadership. It requires business leaders to deliver not just profits but purpose, to engage employees and customers across cultures”

Davos 2016

Paraphrased from a private dinner hosted by Fortune for 30 execs (together employing 3 million people)

Page 7: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Change | The Emotional Resistance

New confidence

Acceptance

Crisis

Depression

Confusion

Anger

Denial

Letting go

Choosing new identity

Thriving

TIME

SELF

ASTEEM

Page 8: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

• What is cq?• Why should we develop cq?• CQ Exercises

Page 9: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Jay Shetty | Video

Page 10: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

1-10 | How are you feeling?

How would you rate your organisation’s effectiveness working across cultures?

1 = Non-existent | 10 = Extremely effective

Page 11: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Name& Role & Cultural

Background

Introductions

The rating you gave the organization(1-10) and why?

What would you change?

Page 12: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

IQ + EQ + CQ

Page 13: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Definition of Cultural intelligence | CQ

“The capability to function effectively across various cultural contexts (national, ethnic, organizational, generational, etc.)”

Soon Ang and Linn Van Dyne, “Conceptualization of Cultural Intelligence” in Handbook of Cultural Intelligence: Theory, Measurement, and Applications (Armonk, NY: M.E. Sharpe, 2008), 3.

Page 14: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Questions

How many of you…

• Live in a country different from the one you were born in?

• Speak another language

• Have 2 or more passports

• Studied or lived in different country?

• Consider yourself to be in a minority group at home/work?

Page 15: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

The case for CQ

Myths:

Just as much Technical

Competence ≠ Success, the

following CQ myths are true:

International Experience ≠

Cultural Intelligence

High EQ ≠ High CQ

One of most interesting research findings is that people who are well travelled or who are intercultural experts don’t

do so well when actually crossing cultures.

Page 16: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

70% | The number of international ventures that fail due to cultural differences

82% | The percentage of multinational firms losing money in China

$700,000 | The first year expense of moving an expat overseas, many of whom fail

(Source: The International Labour Union & the Economist Intelligence Unit).

Why CQ? The Competitive Advantage of the 21st Century

Page 17: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

90% | The number of leading executive from 68 countries who named multicultural leadership as their

top management challenge

60% | The amount of growth GE calculated will come from their developing world revenues

49% | The percentage of U.S children five and under who are children of colour

(Source: The International Labour Union & the Economist Intelligence Unit).

The Competitive Advantage of the 21st Century

Page 18: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Globalisation requires CQ

C Q

4 FA C TO R

M O D E L

Page 19: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ Enhances

Judgement and decision making

Problem solving and ability to adjust

Awareness

Team performance

Well being

Innovation Negotiation

Page 20: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ Enhances

Resilience

Expertise building for diverse markets

Motivation to a shared objective

Multicultural mindset

TRUST

Negotiation

Page 21: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ intelligent companies maximise ROI

Reduces cross-cultural conflict

Increases employee engagement and

productivity

Attracts talent

Drives innovation through enhanced multicultural collaboration

Achieves growth goals Better Service to Clients

Employer

of Choice

Page 22: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

How to Develop CQ | The 4 Factor Model

Drive(motivation)

CQ

Knowledge(cognition)

Action(behavior)

Strategy(meta-cognition)

Page 23: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | The 4 Factor Model

Drive(motivation)

Having the interest, confidence,

and drive to adapt to cross-

cultural contexts

CQ

Knowledge(cognition)

Action(behavior)

Strategy(meta-cognition)

Page 24: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | The 4 Factor Model

Drive(motivation)

Having the interest, confidence,

and drive to adapt to cross-

cultural contexts

CQ

Knowledge(cognition)

Understanding intercultural norms

and differences

Action(behavior)

Strategy(meta-cognition)

Page 25: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | The 4 Factor Model

Drive(motivation)

Having the interest, confidence,

and drive to adapt to cross-

cultural contexts

CQ

Knowledge(cognition)

Understanding intercultural norms

and differences

Action(behavior)

Strategy(meta-cognition)

Making sense of culturally diverse

experiences and planning

accordingly

Page 26: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | The 4 Factor Model

Drive(motivation)

Having the interest, confidence,

and drive to adapt to cross-

cultural contexts

CQ

Knowledge(cognition)

Understanding intercultural norms

and differences

Action(behavior)

Changing verbal nonverbal

actions appropriately when

interacting cross-culturally

Strategy(meta-cognition)

Making sense of culturally diverse

experiences and planning

accordingly

Page 27: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | Knowledge

Page 28: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Identifying global cultural differences | Mapping

Page 29: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Cultural valuesCulture | Values

© 2016 Arcadia Consulting | JP Morgan

Page 30: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Cultural values

Page 31: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Cultural values

Page 32: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Cultural values

Page 33: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

10 Country Clusters

Page 34: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

BIG 5 exercises | Developing CQ

Page 35: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Knowing your emotions, Managing your emotions,

Motivating yourself Recognizing and understanding other

people’s emotions, Managing relationships

Intelligence & personality | What’s important for CQ

Social Intelligence

Emotional stability, Extroversion, Openness, Agreeableness

Conscientiousness

5 Domains of EQ

Big 5 Personality

Model

Multiple Intelligence

Theory

Intrapersonal, spatial, naturalist, musical, logical-

mathematical, existential, interpersonal, bodily- kinesthetic,

linguistic

The capacity to effectively navigate and negotiate complex

social relationships and environments

Page 36: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Openness and Extroversion Exercises - Presence

3rd

2nd

1st

From the work of Patsy Rodenburg

Page 37: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Next steps | Needing CQ

Page 38: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

CQ | Resources

Page 39: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Comparisons with other Countries

https://geert-hofstede.com

Page 40: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

1. Develop a repertoire of social skills

2. Be an actor

3. Use basic vocabulary

4. Slow down

7. Take a CQ Assessment

8. Join a multicultural team

Page 41: APSMA Singapore: How cultural intelligence can increase competitive advantage in professional services

© 2016 Arcadia Consulting |

Want to Know More? | Contact Arcadia

Mark Albas

M +65 8468 7384

[email protected]

Susan Bassett

M +65 9625 3555

[email protected]

Singapore | Hong Kong | Sydney | London