Cultural tendencies have a profound

impact on the interaction of individuals and

groups from different societies. Cultural

Intelligence (CQ) refers to the ability to

recognize these unique characteristics as a

means of evaluating and improving

effectiveness in inter-cultural situations.

The world has moved from IQ to EQ to CQ,

but how does CQ differ from IQ and EQ?

Intelligence Quotient (IQ) and Emotional

Intelligence (EQ) are both commonly used

assessments of intelligence in the business

world. CQ is a progression of these earlier

ideas and concepts with practical daily

implications for any individual or

organization.

Is CQ important in a business context?

In our increasingly globalized world, CQ has

become more relevant than ever and is an

imperative focal point for any business

operation. Employees and managers alike

must be able to function effectively in multi-

cultural situations. Since its formulation, CQ

has grown to become a globally recognized

assessment standard that has been adopted

in a wide variety of sectors. CQ has been

proven to improve innovation, increase

team productivity and reduce attrition

within organizations. For any business

looking for a competitive edge, CQ is a

crucial component to personnel

development and team cohesion.

Cultural Intelligence (CQ)

What are the key steps towards CQ

Capability?

CQ capabilities can best be understood as an

aggregate of CQ drive (motivation), CQ

knowledge (cognition), CQ action (behavior)

and CQ strategy (meta-cognition). These

four distinct competences are specifically

related to cultural challenges and determine

the ability to adapt to cultural situations.

1. CQ Drive measures an individual’s

interest in functioning in diverse settings

and their confidence in coping with the

associated potential difficulties. Those

who enjoy culturally diverse situations

prove to more often overcome these

challenges and succeed in this type of

interaction.

2. CQ Knowledge relates to a person’s

ability to acknowledge the subtle, and

not-so-subtle, differences and

similarities between cultural groups. This

extends beyond interpersonal

interactions, like values and social

norms, and into the understanding of

economic and legal differences as well as

non-verbal behaviors.

3. CQ Action is the capability to adapt one’s

behavior to suit the situation at hand.

Individuals must be flexible in their

behavioral responses while

simultaneously maintaining their own

values and cultural characteristics.

4. CQ Strategy refers to a person’s

competence in interpreting culturally

diverse experiences and in planning their

own behavior in response. Assumptions

must be overcome as individuals adapt

to within the context of the situation.

Would it be fair to group cultures together?

Understanding the full range of cultural

similarities and differences is integral in

developing one’s Cultural Intelligence.

Rooted in years of academic research, ten

global clusters can be used to better

appreciate the behaviors and traits of

cultural groups. These groups can be broken

down as follows:

Anglo: Independent in spirit. Low

uncertainty avoidance. Competitive.

Arab: Strong family ties and value in honor.

Collective.

Confucian Asia: Courteous, civil and family-

oriented. Hierarchical. Long term in timing.

Eastern Europe: Diverse and accustomed to

change. Low uncertainty avoidance.

Germanic: High priority on individual rights.

Creative yet pragmatic. Competitive in

achievement.

Latin America: Solid family ties. Celebratory

and in the moment. Optimistic and forward-

facing.

Latin Europe: Charitable and devout. High

uncertainty avoidance.

Nordic Europe: Focus on work/life balance.

Modest, skeptical and prioritize equality.

Individualistic with cooperative

achievement.

Sub-Saharan Africa: Unity through diversity.

Committed to interdependence and

connectivity.

Southern Asia: Hierarchical with focus on

service, honor and respect. Peaceful and

respectful of diversity.

Cultural values can be used to appreciate

different behaviors and understand how

these archetypes play out in everyday life.

Below are the 10 Cultural Values identified

which help build a person’s profile:

Identity: Defines the degree to which a

person identifies as an individual or part of a

collective group.

Authority: Measured through “power

distance,” this relates to how comfortable

individuals are with separation of power.

Risk: The amount in which people within a

particular culture tolerate uncertain or

ambiguous conditions.

Achievement: Whether priority is placed on

collective success or individual

accomplishment.

Time: Refers to the inclination towards

immediate, task oriented goals versus long

term, big picture achievement.

Communication: Either low context or high

context, communication styles vary in the

assumption of implied vs. explicit meaning.

Lifestyle: Primarily relates to views on the

role of work and personal time.

Rules: A judgement of potential behavior

under set guidelines and the ability to

interpret one’s obligation to adhere to said

rules.

Expressiveness: Inward or outward

experience of emotion. Some cultures

support open expression while others see

emotional control as a sign of respect and

dignity.

Social Norms: The degree to which social

constructs are controlled or openly

disregarded.

So what value can CQ bring for both

individuals and business organizations?

Growth in Cultural Intelligence is a

worthwhile investment for managers and

team members alike. Businesses and

individuals do not reach their height of

achievement simply through coping with

cultural diversity, but instead through

understanding and methodically leveraging

the heterogeneous nature of organizations.

CQ relates to all levels of interaction, from

socializing to dealing with the more sensitive

or difficult relationships. Addressing the

complex dynamics behind inter-personal

interactions will lead to increased levels of

respect and effectiveness. Greater CQ will

lead to more productive communication

across all cultures, enhancing job

performance, increasing profitability and

increasing prospects in new markets with

the ability to service a broader customer

base. There’s a good reason why an

increasing number of businesses are

realizing the benefits of developing their CQ.

Diversity can, and will, with the proper

understanding and attention, enrich any the

operations of any organization.

This Article is brought to you by Arcadia

Consultants. Arcadia is a catalyst of

organizational change, driven by a desire to

improve business performance through the

delivery of sustainable, attainable solutions. We

work with our client’s hand-in-hand to develop

the proper mindset and behaviors needed to

succeed in today’s global economy. To find out

more about Arcadia’s or if you would like to

secure in a free business consultation, please

contact susan.bassett@arcadiaconsulting.com.