What is Cultural Intelligence and Why is it Key to Business?

Cultural intelligence (CQ) is the ability to function well and thrive in multicultural settings based on an understanding of the beliefs, behaviors, and cultural expectations of diverse groups of people. Accepting this diversity is an initial requirement of increasing one's cultural intelligence – we must go further than this, actively adapting to and working with people from different backgrounds to develop this ability further.

By adopting a flexible mindset and increasing our exposure to the diverse viewpoints and experiences, we can foster cultural competence. This is an ability to work effectively with people on different journeys and with differing identities. While these terms are sometimes used interchangeably, the question of cultural competence vs cultural intelligence is a little more complex. To put it simply, cultural intelligence (CQ)  is the awareness and ability that grows from this cultural competence.

CQ in action

The ideas of IQ (intelligence quotient) and EQ (emotional quotient or emotional intelligence) are long-established, but cultural intelligence (CQ) is the extension of EQ, as it has become significantly more important in our multicultural and globally connected society. Let's take a look at a few cultural intelligence examples:

• Focusing on clear communication and respecting various forms of etiquette to make sure all individuals, across all backgrounds, feel valued and supported 

• Making space for different religious practices and belief systems as part of a diverse team whether allowing for religious holidays or celebrating diverse days as a team

• Educating all personnel about the harm caused by discrimination and bias, whether this is conscious or unconscious.

Why is Cultural Intelligence So Important in Business?

CQ is relevant in both a social and business context. But why is cultural intelligence so important in our workplaces and for our leadership?

Racism comes in Many Forms

Most people are not overtly, consciously racist or prejudiced. However, instances of prejudice and bias still occur. This is because much of this behaviour is unconscious, and may be deeply ingrained into the way people work and interact. Building CQ can help to eliminate racism and prejudice in all its forms.

Company Cultures Are Critical

For businesses, company cultures are everything. As many as 46% of job seekers say culture is an important factor, while 15% say they have rejected a job offer because the culture was not up to standard. Improving CQ can lead to a more inclusive company culture, which helps attract and retain the best clients, personnel, and partners. And 94% of executives agree that culture greatly impacts their employees' stress levels and productivity.

When we encounter obstacles or when we interact with another individual that sees things differently, we need to be able to step out of our own perspective and examine the situation from another angle. Whether people are from the same background or have a shared cultural identity, everyone is an individual. Building cultural intelligence helps support and celebrate this individuality while bridging the knowledge and collaboration gaps that may emerge within the team structure. 

A high CQ approach focuses on building stronger relationships, and having tough conversations that make teams more efficient and more effective. This is inherently valuable in eliminating racism and prejudice in the workplace, but it also supports improved problem-solving and blue-sky thinking.

How Can We Foster Cultural Intelligence?

Developing cultural awareness is vital if we are to create thriving, welcoming, successful business structures. So, how do we go about this?

• Conducting multicultural team building to recognize differences, bridge knowledge gaps and increase cultural intelligence

• Carrying out customized training to examine, understand and recognizer the effects of our own unconscious biases

• Increased exposure to different environments and different cultural identities that enhance one's cultural competence 

• Seeking out environments different from the one you know, perhaps through global assignments or similar programs

How Do We Measure Cultural Intelligence?

It's important to measure cultural intelligence. CQ can be measured both qualitatively and quantitatively. Firstly, you can encourage personnel to be more mindful of the processes discussed above so they can notice the steps they are taking towards improved CQ. This in turn will bring about behavioural changes that can be witnessed in the workplace. Interviewing personnel about their experience can also provide valuable qualitative insight.

Surveys, in which individuals provide a numerical score for the company's culture, offer further understanding. This can provide benchmark values that can be tracked to measure progress over time.

Now you know a bit more about CQ and how to increase it after having looked at some cultural awareness examples. We've outlined the importance of this form of intelligence and how it relates to business so that you can take practical steps in that direction.

At Tough Convos, we are constantly working to help clients like you tackle unconscious bias within the workplace and build stronger more connected and effective teams. Reach out today for an initial consultation on what your team needs most in 2024.