In a world where professional services firms are increasingly opting for regional and global reach, the need to be responsive to cultural differences has skyrocketed. Whilst being culturally savvy has always been critical to local and cross-border business success, there is enormous room for improvement in this area. In an era where global mobility of talent is at an all time high, there is significant pressure on firms to respond to cultural nuance.

1. 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)

2. 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.

3. 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.