Inclusive Leadership: Critical for a Competitive Advantage

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1 Iclusive Leadership: Critical for a Competitive Advatage Berlitz Cultural Isights Series Author: Malii Jaakirama A Berlitz Compay

2 Berlitz Cultural Isights Series Iclusive Leadership: Critical for Competitive Advatage Diversity without iclusio does ot work Diversity exists today i just about every part of the world ad every idustry sector. As the world becomes flat ad orgaizatios cotiue to globalize, a diverse workforce is commoplace. Global orgaizatios uderstad that a diverse workforce ca be the primary source of competitive advatage. But simply havig a diverse orgaizatio is ot eough. Successful orgaizatios share oe commo characteristic. They have leared how to leverage diversity to create a uified ad iclusive global culture. This icludes developig a deeper uderstadig of culture ad cultural differeces as it applies to idividuals, teams, fuctios ad orgaizatios. Practicig diversity ad iclusio o a global scale allows for more effective talet maagemet (attractio ad retetio), more effective aligmet ad team performace, ad improved efficiecy, all factors which cotribute to buildig a high-performace orgaizatio. To be successful, orgaizatios ad corporate leaders must embrace the differeces people represet ad demostrate they are iclusive as well as diverse. Global treds The importace of diversity ad iclusiveess are further uderscored by key global treds that are affectig the workforce. The workforce is advaced; idustrialized ecoomies are maturig. The percetage of immigrats ad miorities i the workforce ad customer base of idustrialized coutries will icrease. The proportio of wome i the workforce ad i decisio-makig positios will icrease. There is icreasig recogitio ad acceptace of gay/lesbia lifestyles. People with disabilities are icreasigly represeted i the workforce. There are icreasig cross-border/cross-boudary iflueces ad depedecies (M&A, suppliers, JVs, stock- ad stakeholders, etc.). Several geeratios with differet eeds ad learig styles are represeted i the workforce. Iclusive Leadership: Critical for a Competitive Advatage 2

3 Berlitz Cultural Isights Series Uderstadig Diversity ad Iclusio We ca go back to drawig board ad esure we cotiue to hire to the optimum mix, but our turover patter does ot chage! Not sure what to do. We have created affiity groups ad they seem to be workig but (Heard from may hirig maagers ad HR professioals) Today, diversity has a much broader meaig tha traditioal defiitios focusig oly o geder ad ethicity. Diversity i the global cotext ca be defied as visible ad ivisible differeces, thikig styles, leadership styles, religious backgroud, sexual orietatio, age, experiece, culture etc. Iclusiveess is the quality of the orgaizatioal eviromet that maximizes ad leverages the diverse talets, backgrouds ad perspectives of all employees. Diversity is the mix; iclusiveess is the lever. May orgaizatios focus o attractig a diverse group of employees, but the struggle with retaiig the right talet. Orgaizatios with a highly diverse workforce that do ot pay attetio to a iclusive eviromet are likely to be more dysfuctioal tha orgaizatios without a diverse staff. Research suggests that the aswer lies ot so much i policies ad procedures as i the midset of leaders i creatig a culture that is iclusive. The followig chart shows the relatioship betwee diversity ad iclusio. Global Orgaizatios are characterized by a high level of diversity particularly o a liguistic, cultural (atioal, orgaizatioal ad fuctioal) ad experietial basis. What is ot give however is the degree to which the orgaizatio s culture possesses the quality of iclusiveess. The upper left quadrat (A) shows high diversity but low iclusio. The lower left quadrat (B) represets low diversity ad low iclusio. The bottom right quadrat (C) shows high iclusio but low diversity. Quadrat D shows high iclusio ad high diversity. Orgaizatios that practice iclusio as well as diversity are able to experiece high levels of collaboratio, egagemet ad retetio which provide a competitive advatage. Achievig Quadrat D Joerg Schmitz ad Nacy Curl: The Guide for Iclusive Leaders. A TMC Publicatio. Iclusive Leadership: Critical for a Competitive Advatage 3

4 Berlitz Cultural Isights Series The role of the leader is crucial i drivig performace i a globally diverse ad iclusive eviromet Traditioal teams created with o particular emphasis o diversity typically perform at average levels. Global ad culturally diverse teams experiece heighteed risks ad opportuities, but high team performace occurs if the team leader drives performace through iclusiveess. The jourey to cultural agility Focusig o iclusio starts with developig Cultural Agility, the ability to effectively avigate, commuicate, iterrelate ad fuctio well i diverse cultural settigs. Culturally agile leaders are adaptable ad flexible. These are skills ecessary to reduce risk ad maximize opportuities to achieve performace ad results. A ope attitude is the prerequisite for egagig i the cotiuous learig process of developig cross-cultural effectiveess. Self-awareess facilitates other-awareess. Cultural kowledge, i tur must be traslated ito cross-cultural skills to achieve cross-cultural effectiveess. To become useful, self- ad otherawareess must be grouded i cross-cultural kowledge. Developig cultural agility starts with a ope attitude, which leads to self-awareess, other awareess, kowledge ad skills to apply this kowledge. Leaders agile eough to diagose team dyamics exhibit chage aget behavior. Leaders who are uable or uwillig to use this chage aget behavior ca egatively impact the orgaizatio i a umber of ways: ucoscious biases i groomig of idividuals, uequal ad iequitable stadards, lag i usig diversity ad iclusiveess to further cliet relatios ad grow accouts ad the iability to retai talet. Also importat o the jourey to cultural agility is a focus o micro-behaviors: small, subtle, ofte uspoke ad ucoscious behaviors that commuicate dispositios, attitudes, biases, ad setimets. Body laguage, voice toe, ad facial expressios ca impact positively or egatively, puttig some team members at a disadvatage ad others at a advatage. Four key skills are fudametal to attaiig cultural agility: Cultural Due Diligece: the process of adequately assessig the possible effects of culture i relatioships. Style-Switchig: the ability to use a broad ad flexible behavioral repertoire to accomplish oe s goals. Iclusive Leadership: Critical for a Competitive Advatage 4

5 Berlitz Cultural Isights Series Cultural Dialogue: the ability to illumiate cultural uderpiigs of behavior ad performace, close cultural gaps ad create cultural syergy through coversatio. Cultural Metorig: the ability to advise, teach ad coach idividuals i oe s sphere of ifluece to (a) recogize the cultural uderpiigs ad cosequeces of their behavior, (b) uderstad the cultural ad behavioral requiremets for true iclusio, ad (c) support chage through iclusive behaviors, practices, ad approaches (icludig policies ad systems). Practical suggestios to get you started o your jourey to cultural agility To become a iclusive leader: Iovatio provides the seeds for ecoomic growth, ad for that iovatio to happe depeds as much o collective differece as o aggregate ability. If people thik alike the o matter how smart they are, they most likely will get stuck at the same locally optimal solutios. Fidig ew ad better solutios, iovatig, requires thikig differetly. That s why diversity powers iovatio. (Dr. Scott Page, Professor of Complex Systems, Uiversity of Michiga at A Arbor) Check your assumptios ad biases. Cultivate a o-judgmetal attitude towards differeces. Ask yourself: are your assumptios based o fact? Assume positive itet. Participate i meetigs ad discussios with a positive attitude to build a iclusive eviromet. Slow dow your resposes. Thik ad liste before you talk. Develop listeig skills that help build iclusive behavior. Sca social dyamics ad iteractio patters for exclusio behaviors. Look at your team. Are some members more domiat while others are more passive ad quiet? Work to egage passive participats. Treat everyoe as your Number 1. Give everyoe a voice. For example, someoe o a performace improvemet pla should be treated with the same respect ad icluded i the same way as ay other colleague. Deepe self ad other-awareess. Recogize your ow behaviors, how it impacts team members behaviors, ad work toward becomig more iclusive. Egage ad motivate others i learig about differeces ad experieces o-judgmetally. Speak with peers ad direct reports about the importace of the jourey to cultural agility. Talk about your ow jourey; share it with others ad egage colleagues i coversatio about the importace of iclusio. Egage i costructive coversatios to prevet, reveal ad trasform exclusioary patters ad behaviors. Go ito meetigs ad discussios with a wi-wi attitude. Provide idividual feedback ad coachig to trasform exclusio behaviors. Be forthcomig ad let someoe kow whe their o-verbal or verbal behaviors are exclusioary. Model iclusive behaviors i your sphere of ifluece. Leaders lead by example. Iclusive Leadership: Critical for a Competitive Advatage 5

6 Berlitz Laguages, Ic. 400 Alexader Park Priceto, NJ Uited States Phoe: Outside U.S.: About Berlitz Corporatio Berlitz Corporatio is a global leadership traiig ad educatio compay headquartered i Priceto, U.S.A. ad Tokyo, Japa. With a strog global presece, Berlitz has more tha 550 locatios i over 70 coutries. Fouded i 1878, Berlitz has log bee established as the world s premier provider of laguage ad cross-cultural traiig services. Today Berlitz ad TMC, a Berlitz Compay, offer a comprehesive portfolio that icludes commuicatios skills developmet, global leadership traiig ad scalable customized busiess solutios eablig idividuals ad orgaizatios to leverage diversity through iclusive leadership, ad work ad lead successfully i today s complex global marketplace. Berlitz programs ca be delivered through facilitated sessios face-to-face, live olie via the Berlitz Virtual Classroom, or through web-based self-directed or bleded optios. Together with TMC, we offer web-based learig programs ad assessmet tools. The Cultural Navigator delivers the most comprehesive ad timely cultural busiess itelligece available through a olie iterface. The Cultural Orietatios Idicator (COI), a statistically valid assessmet tool, measures persoal cultural prefereces. The COI eables idividuals to acquire the awareess ad kowledge ecessary for buildig effective skills ad behavioral adaptatios for multicultural maagemet ad busiess. Berlitz also serves the cosumer market ad provides educatioal services through study abroad programs ad Berlitz Kids programs for childre ad tees. For more iformatio o Berlitz programs ad services visit For iformatio o TMC products ad services, visit About the Author Malii Jaakirama, a certified TMC cosultat, has had 25 years of corporate experiece i Accoutig ad Huma Resources ad is fluet i three laguages. She was bor ad raised i Bagalore Idia ad works o a global basis; curretly cosultig i the field of Diversity & Iclusio, Executive Coachig ad Leadership Developmet. Malii has a Iteratioal MBA from Thuderbird Uiversity Berlitz Laguages, Ic. A Beesse Compay