The Perspective of Being a Leader in a Culturally Diverse Team

In this age where boundaries do not exist in context of trade and employment, the responsibility of the executives and managers have amplified as they have to deal with multi-cultural teams while giving effective direction to the firm. We can say that this was certain to happen since globalization got intense now, it’s evident that organizations have the liability of going through a lot of challenges, as well as gains which are massive. 

The flavour of the new leadership focuses on global integration and immersion, however that perspective misses out on an important detail,cultural intelligence. Pursuing global vision and goals while doing so with only one perspective fails as a vast majority of creative potential is simply ignored. 

The dramatic focus on utilizing a locally orientated framework on a non-local basis misses out on a continuously growing market: Cultures that have been largely ignored in one geographical area due to taste, now have the ability and resources to cultivate interest elsewhere. Organizations can benefit by increasing their management team’s diversity with the objective of increasing their overall organizational vision and revenue. Let me elaborate further on the importance of cultural intelligence. 

A considerable amount of research has been done to support the theory that for organizations to have maximum output, employing diversity into their workforce is key. For instance, a 2019 study stemmed by Boston Consulting Group evidenced that management teams with increased representation not only performed above average, but also reported increased revenue stemming from their innovation efforts.

In the same line of thought, in the year 2017, a report by McKinsey & Company was based on the analysis of information from more than 1,000 companies in 12 different countries. The report found that the correlation between profitability and ethnicity in companies is as high as 33% among the most diverse companies’ nations. 

Individuals with different ethnic and cultural backgrounds have different skills, experiences and methods of approaching and solving problems, making them stronger in varying market conditions and diverse client interactions across many business communities as well as enabling them to be more competent in complicated and unclear circumstances. 

Most, if not all, cross-cultural cooperation encourages better creativity and innovative ideas as a whole. The more people of different cultures, mind sets and professional fields work together, the better the chances the group will come up with creative ideas, recognize different and uncommon opportunities, and engage in many other useful brainstorming activities.

“As a result of their professional duality, employees can bring unique and innovative concepts,” says Pamela Fuller who works in inclusion and leadership consulting. “Therefore leaders need to understand and exploit those differences to the fullest so that their workforce can innovate to the maximum.”

The Issues Faced While Handling Cultural Pluralism 

The enhancement of managerial authority over polarized work force of different ethnicities also leads to new formidable challenges that should be noted. Differences in languages, customs, and workplace etiquette may easily lead to misunderstandings and offences unless they are better managed. 

As Rita McGrath, a Columbia Business School lecturer explains, “A difference in culture is not only a source of logistical problems but also a psychological barrier that affects trust, teamwork and finally performance.” 

Employees at the Center for Talent Innovation stated that approximately 39% of them consisting of multicultural employees believed that success at work for them was hampered due to their cultural background. A 2018 survey by Gartner also revealed that nearly 1/3 of HR leaders believe that the biggest challenge is managing a culturally diversified and geographically dispersed center.

The achievement of these individuals is of the highest level and a lot of the time, adaptive leadership is the reason behind it. Rather than imposing a single, monolithic “company culture,” savvy executives must learn to cultivate an environment of psychological safety, open communication, and mutual respect – one where diverse perspectives are actively welcomed and leveraged as strengths. 

Executive management must look at cultural diversity as not just an issue but a way in which an assumption can be a big opportunity. Given the case studies and research, it highlights three approaches that the company should employ. 

The next method is to improve the interpersonal understanding of team members from distinct cultures. Cross-cultural understanding is crucial to this process and for this purpose understanding the co-workers and their styles is necessary. Thus, training sessions, doing cultural exercises, and encouraging the employees to appreciate each other’s culture can help. 

Using such training as a point of reference can enable employees resume global engagement while enjoying their interaction with one another within them organization. And for that reason IBM is one such great opportunity. IBM is quite collaborative enabling employees to assimilate with one another easily. As such, newcomers are expected to enroll in a program of international orientation where they meet with colleagues from various countries. 

In effect, the latter allow greater interaction with colleagues from different countries given that participants within IBM come from different countries and therefore are from various organizational backgrounds. The approach enhances interaction, decision making, and conflict resolution. 

On a similar note, the multi-system consultancy, McKinsey, aims to abolish the ‘it works there’ perception that such an informal approach could invite culture within the organization by allowing employees to follow and reinforce culture ambassadors within the given organization. These sorts of actions encourage new upgrading strategies and global aim in businesses.

The goal is to foster spaces for intercultural communication, development of mutual understanding, and transfer of thoughts. In this sense, as team members understand more about each other’s histories and experiences, they are in a better position to work together.

Use Votes for Creation

Instead of trying to abolish or freeze cultural patterns of behaviour, it is important to retain them as useful sources of competitiveness. This, in turn, permits the unrestrained creativity of the organization’s employees whenever they are assigned diverse teams with complex tasks that are unclear in scope.

For example, 3M is an international conglomerate that is known for its innovative culture – and not the least for its diversity and inclusion. The way the company’s research and development (R&D) departments work is such that members of the teams are recruited from various countries, areas of study and functions. This difference in ideas allows the company to invent and create new processes and products.

As the head of Diversity and Inclusion at 3M, Kristen Smith Ulmer reveals: “A cultural differential in a team is the key factor which enables a team to perform better. This is because when members of a team have differing expertise, life experiences, and approaches to solving problems, the chances of having great breakthroughs are high.” This essentially means that multicultural teams are spearheading the future.

Empower Multicultural Leadership

In the communication domain, leaders’ willingness to modify management styles in accordance with their teams’ cultures is a must. This may mean changing the way information is shared, how decisions are made, or even how day to day activities are conducted in the workplace. 

Take the case of the consumer goods company Unilever, which in the recent years has gained ground in attaining a worldwide focus, and a culturally intelligent leadership pool. In 2016, the company launched an individualized executive development program which sought to prepare senior managers for leading multi-ethnic teams that were geographically dispersed. 

With the use of cross-cultural case studies and coaching, Unilever’s leaders were able to identify their cultural prejudices, adjust their leadership styles and motivate their teams who are from different cultures. The outcome of this approach has been great – across the globe, Unilever’s employees’ overall engagement levels, capacity to innovate, and business operations have improved significantly.

“Leena Nair, former Chief HR Officer of Unilever, says, “It is important for modern global leadership to possess a high level of cultural intelligence and the ability to cope with challenges. In today’s world, leaders need to have a flexible approach’.’’ 

Conclusion: The Key to Great Potential Lies in Accepting Variations 

As globalization progresses, workplace diversity will remain a significant aspect shaped by culture. Shift your mindset from seeing this diversity as a barrier to viewing it as an opportunity. 

When businesses encourage cultural familiarity, utilize ethnic diversity for their innovative ideas, and motivate transnational leaders, they can turn what would normally be considered barriers into elixirs that would drive ease of doing business. Thus, they fully exploit their most important asset – themselves. 

21st century will belong to the companies that recognize the advantages which can be derived from diversity of culture rather than doing all they can to get rid of it.