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Developing Culturally
 Intelligent Leaders
                          Silvia Lorente
       Human Capital Management Director
                                   IATA
IATA

1500 employees in 65 countries
120 nationalities represented
In Geneva, 350 employees of 30 nationalities
(none > 12 % )



                   2
Middle classes drive travel
Global middle class in 2009 and prediction for 2030


                              Europe
North America


                                                Asia Pacific
                              Middle East &
                              North Africa
        Central &
      South America
                                  Sub Saharan
                                     Africa
                      100mn
                      500mn            2030
                       1bn
                                       2009
70% of cross-national business
ventures fail due to cultural clashes

         Source: International Labor Organization




                   4
Research shows that:

 45 % of US expatriates fail in their first
        international assignment




                   5
A common misunderstanding…

 The difference between an expatriate and a global
 manager (camaléon):

   Expatriates are defined by location
   Global Managers are defined by their state of mind




                       6
Power Distance vs. Individualism
                                   5                                                           • Ecuador            • Guatemala
Individualism (IDV) Collectivist




                                                       • Costa Rica          • Pakistan             • Venezuela
                                   15                                                            • Indonesia
                                                                                      •Thailand •Singapore • China
                                   25                                                      • Hong Kong
                                                                                                     • Mexico • Romania
                                                                                                                  • Philippines
                                   35                                          • Turkey                • Arabs
                                                                              • Iran       • Brazil
                                                                                                                 • Russia
                                   45                                        • Japan                • India
                                          • Israel                • Spain
                                   55
                                                        • Finland                                • Switzerland FR
                                   65                          • Germany
                                                       • Norway                            • France
                                                       • Sweden                           • Belgium FR
                                   75         • Denmark                        • Canada Quebec
                                                 • New Zealand
        Individualist




                                   85                   • UK
                                               Australia
                                                  United States
                                   95
                                     10               30                50                70                90             110
                                          Small               Power Distance (PDI)                           Large
CQ
Cultural Intelligence is the capability to function
effectively across national, ethnic and
organizational cultures

   Four Dimensional Model
   A Set of Skills


                  Earley, P. C., & Ang, S. (2003). Cultural intelligence: Individual
                  interactions across cultures. CA: Stanford U Press.
                          8
Cultural Intelligence
Strategy                 Knowledge
Awareness                Business
Planning                 Interpersonal
Checking                 Socio-linguistics




     Drive               Action
     Intrinsic           Speech Acts
     Extrinsic           Verbal Behaviors
     Self-Efficacy       Non-Verbal Behaviors
                     9
A partnership for research and
 Leadership Development




           10
11
INTERCULTURAL
                                LEADERSHIP
  I-LEAD                        ENGAGEMENT
                                AND
                                DEVELOPMENT

Developing a new generation of IATA leaders able to:
   Drive organizational and cultural change
   Communicate actively across geographical and
   organizational boundaries
   Bring added value to the business by working together
                           12
RETURN OF INVESTMENT
       Innovation         Leader Effectiveness      CQ Training
                             & Emergence




Team Effectiveness
                                                          Cultural
                                                         Adaptability

                                   CQ




                                                     Job Performance
       Intercultural
        Negotiation                     Career Success
                       Social Capital
Impact of I-LEAD on CQ
     78




          14   Source: Research conducted by Guido Gianasso
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Silvia Lorente - Developing Culturally Intelligent Leaders

  • 1. Developing Culturally Intelligent Leaders Silvia Lorente Human Capital Management Director IATA
  • 2. IATA 1500 employees in 65 countries 120 nationalities represented In Geneva, 350 employees of 30 nationalities (none > 12 % ) 2
  • 3. Middle classes drive travel Global middle class in 2009 and prediction for 2030 Europe North America Asia Pacific Middle East & North Africa Central & South America Sub Saharan Africa 100mn 500mn 2030 1bn 2009
  • 4. 70% of cross-national business ventures fail due to cultural clashes Source: International Labor Organization 4
  • 5. Research shows that: 45 % of US expatriates fail in their first international assignment 5
  • 6. A common misunderstanding… The difference between an expatriate and a global manager (camaléon): Expatriates are defined by location Global Managers are defined by their state of mind 6
  • 7. Power Distance vs. Individualism 5 • Ecuador • Guatemala Individualism (IDV) Collectivist • Costa Rica • Pakistan • Venezuela 15 • Indonesia •Thailand •Singapore • China 25 • Hong Kong • Mexico • Romania • Philippines 35 • Turkey • Arabs • Iran • Brazil • Russia 45 • Japan • India • Israel • Spain 55 • Finland • Switzerland FR 65 • Germany • Norway • France • Sweden • Belgium FR 75 • Denmark • Canada Quebec • New Zealand Individualist 85 • UK Australia United States 95 10 30 50 70 90 110 Small Power Distance (PDI) Large
  • 8. CQ Cultural Intelligence is the capability to function effectively across national, ethnic and organizational cultures Four Dimensional Model A Set of Skills Earley, P. C., & Ang, S. (2003). Cultural intelligence: Individual interactions across cultures. CA: Stanford U Press. 8
  • 9. Cultural Intelligence Strategy Knowledge Awareness Business Planning Interpersonal Checking Socio-linguistics Drive Action Intrinsic Speech Acts Extrinsic Verbal Behaviors Self-Efficacy Non-Verbal Behaviors 9
  • 10. A partnership for research and Leadership Development 10
  • 11. 11
  • 12. INTERCULTURAL LEADERSHIP I-LEAD ENGAGEMENT AND DEVELOPMENT Developing a new generation of IATA leaders able to: Drive organizational and cultural change Communicate actively across geographical and organizational boundaries Bring added value to the business by working together 12
  • 13. RETURN OF INVESTMENT Innovation Leader Effectiveness CQ Training & Emergence Team Effectiveness Cultural Adaptability CQ Job Performance Intercultural Negotiation Career Success Social Capital
  • 14. Impact of I-LEAD on CQ 78 14 Source: Research conducted by Guido Gianasso