Jason Patent

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The Business Value of Mindset Skills

I've never seen a statement about the business value of intercultural skills as clear and concise as this:

More and more business leaders are identifying real business value in employing staff with intercultural skills. These skills are vital, not just in smoothing international business transactions, but also in developing long term relationships with customers and suppliers. Increasingly they also play a key role within the workplace, enhancing team working, fostering creativity, improving communication and reducing conflict. All this translates into greater efficiency, stronger brand identity, enhanced reputation and ultimately impact on the bottom line.

This is in the foreword of a new report from the British Council, in association with Ipsos and Booz Allen Hamilton. The report is called "Culture at Work," and it reads like a manifesto.It's music to the ears of interculturalists, who struggle with old stereotypes that "communication" is somehow "soft" and lacks "hard" business value. (See also an earlier post about a similar report from the Economist Intelligence Unit.)

The study surveyed HR managers at 367 large employers located in nine countries: Brazil, China, India, Indonesia, Jordan, South Africa, the UAE, the UK and the US.

The report is packed with good data. A few highlights:

  • An overwhelming majority of employers view intercultural skills as important or very important. China brings up the rear at 70%; the US is in the middle at 88%; and Indonesia and Jordan lead with 100%.

  • The three skills most valued by employers are, in order: "demonstrates respect for others," "builds trust," "works effectively in diverse teams." "Qualifications related to job" is tied for fourth place with "open to new ideas / ways of thinking."

  • Skills which have hard business value include "good for reputation," "bringing in new clients," "building trust with clients."

  • Skills which help mitigate risk include preventing damage to reputation and loss of clients.

  • In several of the countries there is a belief that the education system isn't providing the needed set of intercultural skills. In the US, for instance, 70% say the education system meets these needs "somewhat" or "not at all."

  • Interestingly, though maybe not surprisingly, the US is by far the most insular of the nine countries represented: only 28% of employees have frequent contact with customers or partners in other countries, and 26% with colleagues in other countries. The next lowest is Brazil, with 56% and 54%. The highest is Indonesia, with 83% and 100%.

We've got some distance to go yet, but we're on a long, one-way road toward greater valuing of intercultural skills in the global workplace.