In today’s global economy, where companies operate with teams dispersed across continents, the ability to navigate cultural differences is no longer a soft skill—it’s a crucial business competency. For high-velocity venture studios with “irrationally global” core values and missions to build dozens of companies quickly, mastering Cultural Intelligence (CQ) is essential for achieving high performance.
The challenge isn’t just avoiding culture clashes; it’s proactively equipping every team member with the agility to adjust their behaviors and expectations in real-time when interacting with colleagues and customers from diverse backgrounds.
The Cultural ROI Method: Recognize, Open, and Identify
Michael Landers, a Global Director of Growth and Development, developed the Cultural ROI method based on years of experience, including growing up overseas and observing the difficulties people faced trying to adapt. The core purpose of the method is to help people “react less and recognize more” in cross-cultural situations.
The three components of the method are:
1. Recognize (Self-Awareness)
This module focuses on self-awareness, helping people recognize their own mental models and biases—the way they see the world.
- The Greatest Gift: The foundation is the quote that “the greatest gift you can give to humankind is your own self awareness”.
- Contemplation Over Compliance: It encourages deep contemplation and reflection rather than just giving a single “way” to follow, recognizing that there are many different ways of approaching the world.
2. Open (Tolerance for Ambiguity)
The second step is to open your mind by challenging ingrained assumptions about how things “should” be done.
- Small Situations, Big Insights: This involves analyzing small, everyday cross-cultural scenarios (e.g., reacting to a guest helping clear a table or burping after a meal) to show that one behavior considered polite in one culture can be seen as extremely rude in another.
- The Pause: The ultimate goal of this stage is to practice the “pause”—to overcome the initial judgment or assumption based on limited life experience.
- The Core Skill: This module cultivates tolerance for ambiguity—the ability to see more than one valid way of handling a similar situation.
3. Identify (Adaptation)
The final step is to identify how to adapt your response.
- From Reaction to Adaptation: After recognizing a feeling (e.g., “I feel this person is aggressive”) and opening the mind (“Is that their intention?”), the individual can choose an adaptive response.
- The Goal: The aim is to provide a spectrum of adaptive responses for specific situations to alleviate potential friction and create stronger connections. The longer a person spends in different cultures, the greater their exposure to opportunities to adapt their response, provided they are open to them.
The Critical Role of Leadership Buy-In
Implementing cultural initiatives only works when there is full leadership support, which often proves challenging. Common obstacles include:
- “Words Only” Buy-In: Leaders verbally support the idea but do not participate themselves, suggesting only the staff needs the training.
- Inadequate Resources: Leaders fail to provide the necessary time, energy, and money, treating the effort as something that should “happen by itself”.
- Forcing the “One Way”: Leaders sometimes force the entire team to adopt a specific book or practice that inspired the leader, without considering if it’s the right fit for the culture they want to create.
Advice for Founders and Leaders
- Start with Specific Definition: The most crucial first step is to clearly define the desired culture. Instead of saying “We want a great culture,” leaders must define buzzwords like “inclusion” or “high performance.” A single word can mean a hundred different things, and a shared, specific meaning is necessary to align the team.
- Be a Role Model: Leaders must be culturally intelligent themselves, demonstrating curiosity, openness, and adaptability. Their behavior directly influences the entire organization.
- Use a Multi-Modal Approach: Since everyone learns differently, training should not be a one-time event. Programs are best used as primers for conversation, followed by collaborative team discussions, practical exercises, and individual reflection.
- Embrace Qualitative Feedback: Relying solely on metrics is insufficient for measuring cultural impact. Qualitative aspects, such as creating a safe environment for open, one-on-one conversations, are the best way to get a true pulse on cultural success.
Final Thoughts: The Journey of Continuous Evolution
Ultimately, cultural intelligence isn’t a destination achieved through a single training session; it’s a continuous conversation and a commitment to evolution. Leaders must recognize that programs are merely primers for thought—the true impact and lasting change happen in the everyday actions and discussions that follow. By embedding the Cultural ROI method into the organizational DNA, high-velocity companies can transform cultural ambiguity from a source of friction into a powerful driver of connection and high performance, ensuring the mindset of the team never constrains the growth of the business.
