Intercultural Competence needed at the top
Cross-cultural training often focuses on those undertaking international assignments, rather than on senior decision-makers.

Areas of business impact
My first research question focused on whether the intercultural competence of the CEO has an impact on their success in achieving business objectives. The interview data was analysed to examine where, if at all, culture comes into play at CEO level. The findings clearly indicated that cultural challenges impact the CEOs in the study and that the CEOs' intercultural competencies do have an impact on their ability to achieve their objectives in a number of areas, the top five being managing their top teams, conflict/negotiation, decision-making, hiring, and ethical issues.Five key intercultural competencies
Based on those identified areas of business impact, I analysed which intercultural competencies are most likely to contribute to success or failure. In total, the data revealed 351 instances of competencies evident or lacking across all 28 interviews.
The findings identified five key intercultural competencies needed at the CEO level.
These were:1 Cultural self-awareness, defined as an awareness of one's own cultural influences, tendencies and biases, and awareness of how one's own culture may be perceived by members of a different culture.2 Cultural sensory perception, defined as the ability to recognise when cultural differences are in play, utilising a range of senses to spot verbal and non-verbal cues. (Although this competency is frequently referred to as 'intercultural sensitivity' in the literature, that term is also frequently misinterpreted as something akin to political correctness, so I coined this new term to better describe the sensing nature of this competency).3 Open-mindedness, defined as the ability to suspend judgement based on one's own cultural biases and accept that other ways of thinking and behaving may be just as valid.4 Global perspective, defined as viewing the business from a transnational perspective, rather than as domestic first, rest of world second.5 Adaptability, defined as the ability to change one's behaviour, communication style or business strategy as needed to fit the circumstances.Analysis also found associations between specific competencies and the identified areas of business impact, providing possible insights into which competencies may be most critical, depending on the current strategies, challenges, and stage of business of the company.By far the most-referenced source of culture-related challenge for the CEOs in the study was that of managing and motivating their culturally diverse top management teams. They experience problems building trust and loyalty cross-culturally, and motivating team members from other cultures with different value systems from their own. They encounter difficulties gaining the feedback needed to make sound decisions due to cultural differences in communication style, and at times they are tripped up by cultural differences in specific practices or attitudes.The competencies most associated with the impact area of managing in the data were cultural sensory perception and adaptability. Those who are successful seem to rely more on their ability to sense that something is not working as intended, paying close attention to both verbal and non-verbal signals. Once they sense a problem, they can gather more culture-specific information and adapt their behaviour or strategy.The findings revealed that culture impacts CEO success in dealing with conflicts, and in negotiating. Although not an everyday challenge, the narratives regarding this area of business impact often revealed incidents where the consequence of not understanding the cultural issues at play was complete failure (that is, the negotiation ended, the deal was lost). Therefore, where the CEO is involved in intercultural negotiation, either on a frequent basis or in areas of high strategic importance, this impact area becomes more important. Cultural sensory perception appears to be the most critical competency in this area, to avoid abrupt failures that are the result of being blindsided by cultural differences.The competencies associated in the data with decision-making include cultural sensory perception (the most frequently associated), adaptability, global perspective and open-mindedness. Issues raised were not solely around whether or not decisions made were the 'right' ones, but also around the CEO's ability to adapt to culturally-different decision-making styles, particularly when the CEO is the cultural outsider compared with the majority of the top management team and employees.Hiring the right people for key roles in foreign markets, while not an everyday occurrence, is critical to a company's success. As one CEO in the pilot study explained, the inability to hire the right people in foreign countries is one of her company's greatest barriers to growth. While several competencies were associated with this impact area in the data, the highest association was with cultural self-awareness, particularly the ability to recognise one's own cultural biases.The competencies most associated with dealing with ethical issues were cultural sensory perception, open-mindedness and adaptability, and it seems that all three are required in this area, in this order. Without the ability to recognise that cultural differences are in play and the ability to suspend judgement, one is not able to adapt. While this interplay is probably present in other areas to some extent, it seems particularly strong in this impact area, due to deeply held beliefs and values.
Conclusions
The study has provided a clear indication that CEOs working in a global business environment do perceive that cultural challenges impact their success in a number of strategic areas, and that specific intercultural competencies are needed. This has implications not only for current CEOs, but also for boards of directors and others involved in CEO selection and succession planning, and for HR and communication professionals responsible for executive development.For those working in the relocation field, perhaps the most notable findings from the study are those related to how intercultural competencies are developed. The most frequently cited source of learning by the CEOs was living and working abroad, with several noting that it was essential to avoid living in an 'expat bubble'.Development appears to come frequently from informal relationships, and from the opportunity for mentoring moments as failures occur. This would indicate the need to move away from one-shot training and pre-move orientation toward programmes that provide ongoing support throughout an overseas assignment, and possibly to move away from expat enclaves toward full cultural immersion.For an extended version of this article, see the Summer 2015 issue of our Europe digital magazine, out JulyFor further information visit: bgibson@culturalresolution.com©2021 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.