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Glenn Llopis

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A Lack of Cultural Intelligence Will Put You Out of Business

Posted: 10/21/11 08:12 AM ET

More and more leaders are scared for their businesses. Not because their products and services are not innovative or relevant, but because they just don't connect naturally with the changing face of America's consumers.

The rapid rise of Asian, Hispanic and African-American populations in America is forcing companies to change their business models and their entire business approach. This shift became quite apparent during a recent meeting with the C-level team from a major investment bank who said, "Today, I am scared for the future of our business because our employees don't relate to or with the emerging client base. We are losing business to competitors that are owned and operated by Indian, Hispanic, African-American and Asian leaders. In fact, we are losing key diverse members of our workforce to these same competitors because we lack the cultural intelligence to keep them."

If you were asked about your Cultural IQ, what do you think it would be? Did you know that Hispanics, Asians, African-American and other multicultural groups think, act and innovative differently than mainstream groups? As a business leader, are you actively encouraging your people to bring their authentic identity to work every day? Do you even know what this requires - or how it can be beneficial for enabling new types of business growth for your organization?

In today's global marketplace, you must be culturally intelligent. It's a business imperative. America's corporations are becoming more aware of this need. However, they still don't know what to do and how to do it. Instead they support diversity associations, donate to non-profit service groups, and increase their advertising dollars to target the changing faces of their customers. But when it comes to being authentic in how they integrate cultural intelligence into their business model, this is where the executives begin to get uncomfortable.

Our leaders can't buy cultural intelligence. It's not for sale. You must live it in order to authentically be it. Businesses have to get it or they will be left behind in the global race over the next decade.

 

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12:52 AM on 10/30/2011
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11:51 PM on 10/25/2011
If I were to move to Mexico, I'd expect to need to speak Spanish. If I moved to Italy, I'd learn to speak Italian. I would not feel entitled to demand that a country change it's laws, or language, to suit my particular needs/expectations. Welcome to the United States, where the language is English.
05:07 PM on 10/22/2011
When the US businesses learn to recognize that speaking Spanish is not a disability, handicap or a warning signal for recruiters and human resources for further scrutiny? The first step for any business at any level is to recognize that speaking a second language is a plus (Europeans value this greatly), privilege of the few, the preferred, the better trained, and they should be paid accordingly at a higher rate. The second step would be to try to adapt to demographic variations, and increase their cultural IQ.
04:30 PM on 10/22/2011
Soon, business enterprises in America won't need to worry about multi-culturalism and diversity or adapting their business model for that purpose. At the Obama's deportation rates, one demographic group' entire generation will be wiped out.
mira chancleta
No ball-balancing, clapping, belching seals!
11:20 AM on 10/21/2011
Glenn,

The topic you broach is HUGE and I wouldn't wait for the majority (non-Latin) culture to come up with the answers.

Over the course of time the USA will HAVE to adjust to the new faces, but it will not be easy, voluntary or painless. It took over 200 years of English-language dominance in the USA with a Euro-centric orientation and a begrudging nod to African-Americans, Native Americans and more recently Asian-Americans.

The "hispanic/latino" demographic at this pint is here to stay and that reality is VERY terrifying to the "American" psyche that has for over 2 centuries focused on becoming "American" via language, broad cultural values and social matrices of what "American" means.

The HUGE, GROWING, VERY RACIALLY and ETHNICALLY divergent hispanic-cultured demographic (all "latinos are NOT the same) will definitely have to be dealt with by businesses if they have any intention of surviving the out-of-control cultural tsunami wave that is rising every day in the US.

And learning how to pronounce "chimichanga", "chalupa"a& "chihuahua" is NEVER going to do it. But sadly, that is pretty much the scope of cultural "awareness" of mainstream, English-speaking "Americans".

I speak and write about the topic in the USA and the level of stupidity out there is appalling and that is among the "educated". I won't even get into what the "uneducated" think about "Latin-cultured" people.