4. Diversity is what
comes through
the door.
Inclusion is what
we do to keep it.*
Culture has many
doors…
Do I see
myself
reflected
here?
*REI store manager’s definition of Diversity & Inclusion
offered during 2011 Manager D&I training.
To date one of the cleanest definitions I have
encountered.
5. Cultural Intelligence
The ability to discern and
take into account one’s own
and others’ world views to
be able to seize
opportunities, make
decisions, and resolve
conflicts in ways that
optimize cultural differences
for better, longer-
lasting, and more creative
solutions. Andrés Tapia
Diversity Best Practices
6. Three Stages of Cultural Intelligence
Basic
Grow awareness of differences such as customs, traditions
and taboos
Core
Understand and navigate diverse perspectives other than
one’s own
Advanced
Adapt to, blend and create cultures across a variety of
dimensions
7. The 4 C’s of Cultural Intelligence
Courage: The willingness to step into the unknown. To risk making
mistakes, appearing foolish or feeling stupid. To step outside of one’s
comfort
Consideration: The critical human element. To approach this work
with thoughtfulness and empathy. To be gentle with and forgiving of
both oneself and others
Context: The various lenses through which culture is expressed. To
understand and recalibrate one’s point of view
Competence: The ability to identify, appreciate and navigate culture
however or wherever defined
8. Diversity is what
comes through the
door.
Inclusion is what
we do to keep it.
Culture has many
doors…
Do I see
myself
reflected
here?
12. For the next
3 MONTHS
An L.A. every
20 YEARS
Asia will build…
13. Shift from Super to Shared Power
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2015 2020 2025 2030 2035 2040 2045 2050
India
China
Japan
Russia
EU
U.S.
Share of Global Power Index by Seven Leading Powers
WEST
EAST
Source: The National Intelligence Council, “Global Trends 2030: Alternative Worlds”
15. What’s happening in your world?
What are the implications of these changes on this
group, your team and/or you personally?
What skills will be necessary to succeed in this future?
16. Key Points
New empowered consumer segments
Business on their terms, not ours
Alliances and coalitions building
Challenges for all
17. Global Leader Quiz:
What most impacts the probability of
becoming a Great Global Leader?
Parents are from a different
country
Significant other is from another
country
Number of languages spoken
All of these
None of these
19. Global Leader Quiz:
What is the most important competency
for leaders with multi-country
responsibilities?
Intercultural skills
Vision
Influence
Delegation
Diversity Management
None of the above
20. Influence is fundamental
27%
22%
21% 21%
20% 20%
19% 19%
18%
17%
15% 15%
14%
13% 13% 13%
12%
11%
9%
8%
7%
What most impacts the chances of being a Great Global Leader
Source: 2011 CLC Global Leadership Survey
Highest impact
Lowest impact
21. Source: 2011 CLC Global Leadership Survey
Influence:
The capacity or power of a leader to be a compelling force or to produce effects on the
actions, behavior, and opinions of others across a global organization.
What is influence?
48% 48%
27%
24%
21%
93%
83%
73% 71% 69%
Decision Making Resource Allocation Creativity Delegation Vision
Global Leaders Weak At
Influence
Global Leaders Strong at
Influence
22. Influence is in short supply
78%
59% 59%
54%
50% 49% 47% 46% 45% 44% 43% 43% 43%
39% 38% 38%
35% 34%
29% 29%
25%
Percentage of Global Leaders Highly Effective at Competencies
Source: 2011 CLC Global Leadership Survey
23. What’s happening in your world?
What are some results of successful influence?
What are some measurable behaviors associated with
developing or exercising influence?
Is influence….
Crystal clear?
Quick and easy?
Universal?
24. Key Points
Everyone has a shot at being a great Global Leader
Influence is ambiguous and vague…kind of like the future
Growth and globalization drive influence’s importance
Influence takes time, seldom tangible and requires
patience
29. “…Perceptual organization is the
process by which relationships
among separate elements are
perceived and guide the
interpretation of those elements…
In sum, how we process sensory
information is in context.”
- Pomerantz & Kubovy, 1986
30. We are hit with
11millionbits of information a day
What we can only handle
40 bits
33. “Unconscious bias creates
hundreds of seemingly irrational
circumstances in which people
seem to make choices driven by
overt prejudice, even when they
are not.”
- Howard Ross
37. “…being excluded
from a group
triggers activity in
the same regions
of the brain
associated with
physical pain.”
Kipling D. Williams,
Purdue University, 2007
39. What’s happening in your world?
Describe the first time you ever felt you really didn’t
belong?
What happened to make you feel that way?
How did that impact your perception of the word or
relationships?
40. Key Points
We see the world through context and relationships
We are hard wired to filter to survive
We become invested in our unconscious biases as “real”
We are driven to belong
42. “Culture is the collective programing
of the mind, which distinguishes the
members of one group from another.
If the mind is the hardware, culture is
the software”
- Geert Hofstede
44. Memes
“Self replicating units of
transmission or elements of cultural
ideas, symbols or
practices, transmitted from one
mind to another through
speech, gestures, rituals or other
phenomena.”
Richard
Dawkins
“The Selfish Gene”
46. Cultural Default
A shared set of memes so
embedded in a culture’s
unconsciousness as to be
assumed, invisible and
undifferentiated from their
values and identity.
49. Right: English for “correct” or “proper”
Direito: Portuguese for “right” or “to do
something correctly”
Sağ: Turkish for “right” or “alive”
Dexter: Latin for “right” or “skilled”
Recht: German for “right” or “correct”
오른: Korean for “right” or “morally proper”
50. Left :derived from the Anglo-Saxon word
lyft, “weak”
Sinistera: Latin for “left”, “evil” or
“unlucky”
Gauche: French for “left”, “awkward” or
“clumsy”
:Hebrew for four
left hands” or “extreme clumsiness”
左道: Chinese for “left path” or “unorthodox
or immoral means”
ходить налево: Russian for “to go
leftwards” or “to commit adultery”
60. What’s happening in your world?
What might your cultural defaults be?
Could you list three?
Hint: What identities do you share that are a given?
61. Key Points
Culture is the expression of values through “memes”
Values and memes become synonymous over time
Memes determine our degree of belonging
Invisible memes are our “norms” or “cultural defaults”
76. The “Typical” U.S. cultural defaults
Speaks English
Males are the majority and in dominant, core roles
Females are the minority and in support roles
Are white
Are able bodied
Are assumed to be heterosexual
(Are right handed)
78. “He who fights
with monsters
should look to it
that he himself
does not
become a
monster.”
Friedrich Nietzche
79.
80. Balance of Power 1AD – 2009
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1AD 1000 1500 1600 1700 1820 1870 1913 1950 1973 1990 2009
India
China
Japan
Russia
EU
U.S.
Share of Global GDP of the 8 Great Powers
WEST
EAST
Source: The Atlantic; “The Economic History of the Last 2000 Years”
81. U.S. Corporate Leadership
White Men
White
Women
Minority Men
Minority
Women
Fortune 500
Board of
Directors
71% 14% 11% 4%
Fortune 500
Exec Teams 72% 18% 8% 2%
U.S.
Population
39% 41% 10% 10%
Concur Exec
Team (2012) 73% 13% 13% 0%
82. Shift from Super to Shared Power
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2015 2020 2025 2030 2035 2040 2045 2050
India
China
Japan
Russia
EU
U.S.
Share of Global Power Index by Seven Leading Powers
WEST
EAST
Source: The National Intelligence Council, “Global Trends 2030: Alternative Worlds”
85. What made the card game so
frustrating?
Perception
Biases
Belonging
Cultural defaults
What was
missing?
86. GREAT PerformancePoor Performance
So what happens when the world or our
teams become more diverse?
Diversity’s Impact on Teams
Reference: Adler, N. J. International Dimensions of Organizational Behavior.
4th ed. Cincinnati, OH: South-Western, 2002.
C, Milton J. Bennett 2008
OK Performance
Homogeneous Teams
• Cohesion largely based on cultural
defaults
• Management skill has limited
impact on great performance
87. Multicultural Teams
• Leader acknowledges & supports
cultural difference
• Cultural difference an asset to
performance
+
+
+ +
+
+ +
+
GREAT Performance
Multicultural Teams
• Leader ignores or suppresses
cultural difference
• Cultural difference an obstacle to
performance
Poor Performance
What this means for you:
Diversity’s Impact on Teams
Reference: Adler, N. J. International Dimensions of Organizational Behavior.
4th ed. Cincinnati, OH: South-Western, 2002.
C, Milton J. Bennett 2008
OK Performance
Homogeneous Teams
• Cohesion largely based on cultural
defaults
• Management skill has limited
impact on great performance
• Diversity eliminates
average performance
• Diverse teams lack
commonality through
cultural defaults
• Ability to lead across
differences becomes
critical in performance
88. P.A.U.S.E.
Pay attention to behaviors
Acknowledge your own interpretations and judgments
Understand the other possible reactions
Search for the most effective way to act
Execute your action plan
Diversity is the sum of all unique, various and brilliant qualities, aspects, identities of our customers, employees and partners that step through our door each day. Inclusion is the behaviors, policies, programs, practices, symbols, norms, standards, etc that cultivate an environment in which that diversity feels a sense of ownership, belonging and ultimately loyalty.There is no single door at Concur. Our products, services, and culture have a myriad of access points. Therefore our focus as leaders is:Optimizing the overall mix and retaining itMaximizing the relevancy and appeal across our cultural “doorways” for customers, employees and partnersWe must continue to ask ourselves: “Do I see myself reflected here both in representation and expression?”
The most significant trend is the growth of the global middles class.Estimated to double (1 billion) or even triple to over 3 billion people.
Estimates by the UN show that 70% of world GDP growth will come from emerging marketsChina and India constitute 40% of that growth.
Population growth and increase in the middle class will result in massive shifts to urbanizationMost of these new people will live in South and East Asia; one way of imagining the scale of the urban boom is that a city the size of Los Angeles will be built every three months for the coming two decades.The volume of urban construction for housing, office space, and transport services over the next 40 years—concentrated in Asia and Africa—could roughly equal the entire volume of such construction to date in world history, creating enormous opportunities for both skilled and unskilled workers.Understanding multi-cultural markets By David BersoffGlobal Trends 2030
For the past 50 years or so the US and Europe have held the dominant share of power (DGP, military spending, health, education, governance). Much of what we consider “business culture” is really an export from the U.S. I would include Concur’s culture within this mix.This is all about to change.Rise of the emerging market middle class – consumer empowermentIn a new report entitled “Global Trends 2030: Alternative Worlds”, the National Intelligence Council predicts by 2030, countries in Asia will have surpassed the United States in many of these power metrics, meaning that “the ‘unipolar moment’ is over and Pax Americana – the era of American ascendancy in international politics that began in 1945 – is fast winding down,” the report said. “There will not be any hegemonic power” in 18 years but instead a collection of “networks and coalitions” in which Asian nations and rising economic powers such as India, Brazil, Colombia, Indonesia, Nigeria, South Africa and Turkey will take part.What are some implications of this trend on consumers in general?Increased individual consumer empowermentRequirement of highly customized, tailored products, services and brandingPressure on resourcesAsymmetry in workforce (aging in some places, young in others)Power of women and economic independenceGlobal Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trendsPower is shifting back to its historic owners in China and India. It is become more difused.Global Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends
“There will not be any hegemonic power. Power will shift to networks and coalitions in a multipolar world.”End of an era of the past 50 or so years – in which a single or two superpowers dominated the political, economic and cultural landscapeWhat are some emotions around this?What are some implications of this trend on consumers in general and business travel specifically?Increased consumer empowermentPressure on resourcesAsymmetry in workforce (aging in some places, young in others)Power of women and economic independenceWhat might the impact be on how business is done globally? How will that adjustment be for leaders– particularly in the U.S.?How about for the emerging powers?Emerging countries will undergo similar diversity challenges as the US in the 70s and 80s – but in unique ways – class, caste, age, gender. glass ceiling for exampleConsumers and workforce will become more complex and diverse and will require leadership that reflects this diversity. An emerging divide has appeared between leadership and its workforce. http://www.menendez.senate.gov/imo/media/doc/CorporateDiversityReport2.pdfGlobal Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends
On Feb. 7th, The Corporate Executive Board CLC HR presented its recent Global Leader survey results. I’d like to present a summary of those results as they contain insight very relevant to CQ at Concur.Part of the Corporate Executive Board Global Leader Survey11,500 leaders at 35 organizations and more than 200 HR executivesTwo-thirds of CLC HR’s survey respondents were from outside of North AmericaGlobal Leader DefinitionHas strategic, P&L and operational responsibilities across more than one countryA Great Global Leader achieves Current resultsAnd builds the foundation for long-term successIndicators of a great global leader (18% of leaders):7 in 10 business units that they lead hit their 3-year revenue goalsRisk of attrition on their teams is 13% lower than averageDiscretionary effort levels on their teams are 12% higher than averageIn some slides I will compare Great Global Leaders to “Laggards” who score low in both achieving current results and building foundations for long-term success.Indicators of a “Laggard” (33% of Leaders)(Laggard: A person who makes slow progress and falls behind others)2 in 10 business units that they leadhit their 3-year revenue goalsRisk of attrition on their teams:3% higher than averageDiscretionary effort levels on theirteams: 24% lower than averageAs soon as a leader transitionsfrom single country to multi-countryresponsibility, the abilityto influence becomes the criticaldifferentiator. Influence is thefundamental competency thatleaders must have to effectivelyassume global roles.
Common beliefs aroundglobal leaders’ parents,significant others, andnumber of languagesspoken have little tono impact on theirprobability of beinga Great Global Leader.Key Point: Everyone has the same opportunity to become a Great Global Leader. Caveat: depending on how we define Global Leader…
Global leaders who have strong influence skills are significantly more effective at the other key skills that are essential for Great Global Leadership.I’ve highlighted power as this concept is central to understanding D&I across culturesInfluence is the lynch pin that other core competencies depend. If we get influence right, the others will follow.
On average global leaders are least effective on the most important skill: influence. Global Leaders are best at the most authoritative use of power: holding people accountable. Authoritative use of power is the exact opposite of influence, the most subtle use of power. In a multipolar world of alliances, what type of power will be most effective?Notice how three of the five top competencies are also in the bottom of effectiveness. This reinforces the spill over effect of influence and its importance in being a great global leader.Would you agree Concur is very action oriented with a focus on accountability? How might this promote or inhibit the development of influence?What competencies will be essential in a matrixed organization?
What do you see? Take a moment.
Here is some help
Karl Dallenbach performed groundbreaking work in early perception psychology.Once you “see” the cow, you can no longer not see it. Our minds see what we expect to see. Our previous experiences
“We see the world as we are, not as it is.”It’s impossible to unsee the cow. Once relationships are formed, takes focused energy to unwrite it. Fundamental to understanding culture is context and relationships
“Danger Detector”Automatically and unconsciously determine safetyDanger Detector can be consciously correctedShort cut to aid in decision making Conscious mental models eventually become instinctual
Our fundamental way of looking at and encountering the world is driven by a “hard-wired” pattern of making unconscious decisions about others based on what feels safe, likeable, valuable, and competent“See the world as we are, not as it is”
Selective AttentionSee the car we just bought everyoneOrganizes the world around our attention or focus
Tara Lipinski
How did the relationships change?Was the sense of exclusion based on your personally or by qualities/aspects of a group you belonged to?
How did the relationships change?Was the sense of exclusion based on your personally or by qualities/aspects of a group you belonged to?Additional:Koan from Pat Parker’s poem, “For the White Person Who Wants to Know How to Be My Friend”?The first thing you do is to forget that I’m Black.Second, you must never forget that I’m Black.
Has anyone noticed several themes within the presentation?
Did you catch any? If so – which one’s? Why do you think?If you missed any, would that label describe you? If not - say you were female, or black or gay or even left handed – why not? Often a minority becomes so complicit in the power and symbols of the majority, it no longer questions the supposed universality of the majority’s symbols. Key Point: Overtime, those underrepresented groups accept the illegitimacy or “otherness” of their own experience. They forget, conceal or suppress their symbols and sometimes their own members. “Internal homophobia” Very rarely if never do we designate an executive as “heterosexual” or “abled” when introducing them. However when describing one that doesn’t fit in the assumed norm we attached the corresponding “different” label. Key Point: Labels always connote difference, deviation and abnormality – rarely if ever the standard. For those out of the norm – they must live conjoined to their respective labels. “Jill, the female executive” or “Mark, the black, handicapped accountant”. Energy must be spent either countering the negative connotations or reinforcing the positive attributes of that label. Example:If Mark, an executive, performs poorly, his failings are attributed to his own personal abilities or failings. This wouldn’t reflect poorly on Jack, another executive, who is male assumed. If Jill, the “female” executive, also performs poorly, it reflects poorly on her gender and the stereotype that women can’t compete. Jill not only feels that she let herself down, but all women aspiring to be executives. She is both an individual and a group representative. Lot’s of pressure! Key Point: This is the advantage and privilege of the invisible norm – you are free to be simply yourself.
All are white and using their right hands to write or gesture. The man’s directive stance and behavior indicates leadership. The women are either writing or carrying files.
Again white though the dark haired woman may not be. Right hand prominent. Woman is writing. Man from height and position appears to be leading the conversation
Single white man.
White. Gestures and writing are right handed. Men are leading. Women are either writing, listening or what appears to be in a quasi trance.
These are the traditional, assumed norms that comprise U.S. cultural “default”. Have you noticed that all imagery in this entire presentation has followed these defaults? Which if any did you catch? Why is that?My point here is not attack or accuse this or any other group in power. This isn’t about passing judgment or pitting one group against the other. No person or group is immune. Being part of one underrepresented group does not give a free pass in others. It might make you more sensitive to the experience of other groups. This is not a bad rap on white men. This is where in traditional D&I training things can become uncomfortable and participants begin to shut off. To be clear, this isn’t about shaming or blaming. This about being effective leaders. This means being aware of our blind spots and cultural “defaults” – anytime there is a heavy concentration of one group, quality or aspect at the expense of others. The appeal of being with people “just like me” is a human trait. It’s far easier and efficient to get things done when everyone is uniform and speaks the same cultural language. This is a natural tendency is often a key “default” to surround oneself with like minded, culturally similar people. The reason white males become targets is the degree and expanse of power at their disposal. This is not endemic to one gender, race, ethnicity, etc. Nor does it make non-white, non -males immune to their own cultural defaults and biases or give them a free pass. We all are accountable. Rather my purpose is to illuminate the effects of power and the responsibility we all have as leaders on our own perspectives and resulting communication in action and word, conscious or not.Key points:Does not imply leadership is incapable or unskilledDoes not invalidate experiences, history and skills bring to the tableReflective of the region and industry when we beganKey Point: When supermajorities exist, leadership will need to work harder against the ingrained cultural defaults to reflect the larger pool of perspectives and needs outside of their direct experience. Key Point: As one who has power (wealth, title or representation) being a leader means being responsible and taking ownership of what we take for granted. Of being mindful of those that may not fit that unspoken and invisible norm. What might be some other norms unique for Concur? Respect to alcohol?Family situation?For those out of the norm – they must live conjoined to their respective labels. “Jill, the female executive” or “Mark, the black, handicapped accountant”. Energy must be spent either countering the negative connotations or reinforcing the positive attributes of that label. Example:If Mark, an executive, performs poorly, his failings are attributed to his own personal abilities or failings. This wouldn’t reflect poorly on Jack, another executive, who is male assumed. If Jill, the “female” executive, also performs poorly, it reflects poorly on her gender and the stereotype that women can’t compete. Jill not only feels that she let herself down, but all women aspiring to be executives. She is both an individual and a group representative. Lot’s of pressure! As global leaders it will be imperative that we recognize other areas where we take things for granted.
Holding those accountable and influencing through others both use power but in very different ways. To understand culture and our roles as leader, we much understand and mindfully use power. Power can be determined by many things such as wealth, title and representationGolden Rule: He who has the gold, makes the rules. Historically land, military might, currency. Today it may very well be the aggregation and interpretation of Big Data tailored to the individual that represents power.Most in this room qualify across all three areas in some form or another. Are there other symbols for power more specific to Concur?CQ definition for power: Power is the ability or official authority to decide the values and symbols of a culture So what does it mean to have power?
Most of our cultural defaults are already set. So where do they come from? I’m going to go “big picture” here to offer context. If power is the ability to set the values, symbols and norms then let’s look at who as power.Post WWII and certainly since the 1990’s The US has been the single dominant economic, political and military power.Key Point: The #1 export by the United States over the past 60 years was its culture. The Atlantichttp://www.theatlantic.com/business/archive/2012/06/the-economic-history-of-the-last-2-000-years-in-1-little-graph/258676/
So who has power in the United States? We can use U.S. Fortune 500 corporate leadership as a proxy as it holds both resource and structural (title) power.As power is conferred often to the majority, who is the majority? White males hold a disproportionate majority on Fortune 500 boards, executive teams and governmental leadership in general compared to their share of population. Key Point: A single segment of the U.S. is able to set the values, symbols and therefore norms for others not just in the U.S. but the world. Concur’s composition reflects this trend.So what might this norm look like?
For the past 50 years or so the US and Europe have held the dominant share of power (DGP, military spending, health, education, governance). Much of what we consider “business culture” is really an export from the U.S. I would include Concur’s culture within this mix.This is all about to change.Rise of the emerging market middle class – consumer empowermentIn a new report entitled “Global Trends 2030: Alternative Worlds”, the National Intelligence Council predicts by 2030, countries in Asia will have surpassed the United States in many of these power metrics, meaning that “the ‘unipolar moment’ is over and Pax Americana – the era of American ascendancy in international politics that began in 1945 – is fast winding down,” the report said. “There will not be any hegemonic power” in 18 years but instead a collection of “networks and coalitions” in which Asian nations and rising economic powers such as India, Brazil, Colombia, Indonesia, Nigeria, South Africa and Turkey will take part.What are some implications of this trend on consumers in general?Increased individual consumer empowermentRequirement of highly customized, tailored products, services and brandingPressure on resourcesAsymmetry in workforce (aging in some places, young in others)Power of women and economic independenceGlobal Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trendsPower is shifting back to its historic owners in China and India. It is become more difused.Global Trends 2030http://www.dni.gov/index.php/about/organization/national-intelligence-council-global-trends
So let’s look further down at the Concur level.“What might several implications of this slide be?”“In respect to influence and our cultural “defaults”?”Why is this important: High concentration of any one particular perspective blots out constructive dissent or alternatives critical to innovation. The results is agreeable mediocrity. Leadership runs the risk of becoming trapped in their own story. It’s “default”. This is a big potential gap – and it’s not just with our employees. This is also with our customers and partners.So what. Why might this be important, if at all? Why matters:Concentration of perspectives. Run the risk of only seeing problems and possibilities for a particular point of view. Leadership, especially a highly tenured one, has a different experience and story of the Concur that many new employees experienceRisk new employees not seeing themselves and their values reflected – unclear of a future or place for themNot able to anticipate the shifts of an evolving empowered customer base. Key Point: There is a growing divide between Leadership and the workforce it represents. Therefore reflecting the diversity of experiences, backgrounds and perspectives will become even more important for leadership.
Building trust is essential to influence and being an effective global leader. It’s also foundational to Cultural Intelligence.Two indicators of strong CQ:A culture of shared values but intelligent and deliberate creation and articulation of symbols and norms across regions, departments, teams, etc.A place where everyone has the freedom to be an individual while still respecting and reflecting their group/cultural identitiesIt is a sign of a healthy culture that can weave together a myriad of symbols for its underlying value. It’s a strong culture that can both accommodate the individual as well as their multitude of identities. It demonstrates its agility and capacity for change.Conclusion: Ultimately the more perspectives and points of view we have of our values, the stronger those values become and the stronger sense of inclusion we all have.
