Have you ever wondered why some companies seem to thrive with diverse teams while others struggle? You’ve probably seen the headlines: “Diverse Companies Make More Money!” But the truth is, it’s not as simple as it sounds. It’s like saying people who wear yellow socks are more likely to go to prison—there’s a correlation, but not causation.
The real game-changer is well-managed diversity, which directly boosts problem-solving, creativity, and collaboration. As Matthew Syed notes in Rebel Ideas, cognitive diversity can lead to amazing outcomes, but it’s not a guaranteed formula.
The secret ingredient? Cultural intelligence (CQ). Our instincts often view difference as a threat. We crave comfort, stability, and simplicity, and diversity can feel like a disruption. Without proper management, this leads to frustration, resistance, and conflict.
But here’s the good news: there are tried and tested methods to harness the power of cultural intelligence. One of our clients, a luxury retail brand, has done just that, and the results are impressive. Here’s their story and how they’ve turned cultural intelligence into a strategic advantage:
1. Onboarding with Cultural Intelligence
Every new employee at this company goes through cultural intelligence training as part of their onboarding. To date, 80% of their headquarters staff have completed a cultural profile and participated in CQ workshops. Around 500 people annually attend live masterclasses or workshops on specific CQ topics. This focus on cultural intelligence from the start has led to increased employee retention and engagement. Financially, the company is growing at about 11% year-over-year. As they say, the proof is in the pudding.
2. Creating Team Cultural Profiles
Ninety-seven teams have used Worldprism Teams to map their cultural styles, fostering open discussions about differences. This initiative has helped identify creativity and performance blockers, leading to more effective team dynamics. The most accessed resources include peer mentoring, adopting a learning mindset, and building global teams. This high engagement indicates a strong organizational commitment to developing cultural potential.
3. Embedding CQ in Talent Management
Cultural intelligence is a core competency within this organization. All senior leaders undergo CQ training to maximize cross-border relationships. CQ is a criterion in recruitment, performance discussions, and leadership development. This approach has normalized CQ as an essential everyday skill, driving inclusion organically.
The Impact
The results are hard to argue with. A KPMG study suggests that 80% of international ventures fail due to cultural differences, and the UK economy loses $48 billion annually due to a lack of cultural skills. By investing in CQ, our client has mitigated these risks and achieved above-market growth, improved employee satisfaction, and increased market share. Cultural intelligence might be considered a soft skill, but its impact is tangible and significant.
Are you ready to unlock your organization’s potential with cultural intelligence? Let’s talk and turn diversity into your strategic advantage.
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