Over the last few decades, advances in technology have caused global business opportunities to grow. As businesses make deals with clients and partnerships overseas, the importance of global leadership has increased tremendously. Businesses are always looking for leadership potential in their employees; however, due to globalization, they must now look for cultural competency as well. In order for companies to have successful relationships with businesses abroad, an aptitude in cultural diversity is an absolute must.

What is Cultural Competency?

Since a tremendous amount of business is now conducted with companies overseas, the ability to relate and understand other cultures is an absolute necessity. This does not mean that an individual is culturally competent, if, for example, he or she can speak the language of the foreign client. Language skills help, and they are important in establishing a relationship between one’s company and a foreign partner or client. However, cultural competency is something different. Cultural competency is the ability to understand that one’s own culture is not the same as another’s culture. In addition, there is an ability to adapt to foreign customs and understand them. This adaptability and ability to work outside of one’s cultural comfort zone is what defines cultural competency.

What is the Importance of Cultural Competency?

A stubborn company will stick to what’s successful: doing business the way they have always done it. A company such as this will have the thought process that anyone wanting to do business with them will have to assimilate to their ways of doing business, since those ways have been proven to be successful. These are the kinds of companies that are going to be left behind as the influence of foreign companies continues to increase. Leaders who showcase cultural competency are able to show potential foreign partners and customers that their company is willing to adapt to their needs. This is an important step to creating a long-lasting business relationship. It’s a necessary leadership trait at home as well. More and more foreign workers are moving stateside. Their employers need cultural competency in order to help them adapt to a different way of business and to a new culture. Forcing them to adapt immediately to new cultures and business practices without bringing any of their ideas or practices to the table will be detrimental to both the individual and the company.

Global leadership depends on cultural competency in order to establish long lasting relationships, not only with foreign businesses in the hopes of obtaining clients or partners, but also with helping foreign employees adapt and become better workers.

For more information about global leadership or cultural competency, contact Joan Price.