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What are the top 5 corporate culture challenges?

In this article, we will outline the top 5 corporate culture challenges that most managers of culturally diverse teams can relate to.

A lot of companies are sitting on their own hands because their current corporate culture isn't aligned with their strategy and strategic objectives. It eventually means that the corporate culture is counterproductive to what the company is trying to achieve. One of the most common examples we see is companies who have it as an objective to be innovative, but their culture does not foster innovation at all.

Gugin Leadership research institute has recently conducted a survey on what managers of culturally diverse teams find the most challenging. We used a broad definition of “culturally diverse” so it wasn’t limited to diversity in national cultures. The cultural challenges we identified seemed to be fairly genetic, which falls in line with what we have experienced from working with more than 600 organisations around the world.

 

Below are the top 5 corporate culture challenges for managers of culturally diverse teams we identified:

 

1. Understanding why people behave differently than expected

 

Most of the managers who participated in the survey have been managers for several years before they had to manage a culturally diverse team. They have been used to manage a group of people who shared the same norms, values and basic assumptions in life. Our behaviour is always an expression of our values, so when you are managing people from a different culture you have to their norms and values in order to understand their behaviour. Developing that understanding is the most challenging task managers of culturally diverse teams are facing according to Gugin's survey. See how you can become a culturally intelligent leader with intensive to the point training - anywhere in the world

 

2. Avoid getting frustrated and angry by the top 5 corporate culture challenges

We always compare other people's behaviour with our own norms and values. If the behaviour makes sense we accept it but if it doesn't, we reject it. Sometimes that rejection leads to frustration and hostility. As a manager, you should, of course, avoid showing frustration or hostility towards your employees' behaviour. It is, however, a challenging task according to our survey. It is often a reaction we meet when we counsel leaders on how to deal with cultural diversity, so we were not surprised to see it on this top 5 list. The reason why we end up frustrated and hostile is that we often interpret other people's behaviour incorrectly. An example: If you value always being on time you will get frustrated if some of your team members are notoriously late. Because they are usually late for appointments you might start adding attributes to their personality which are not rooted in reality but solely matches your perception of people who are always late. Instead of building a tower of prejudges try to mobilize curiosity with the purpose to uncover the underlying norms and values. When that has been achieved you might be able to reconcile the opposing views on time orientation.

 

Gugin's intensive, to-the-point cross-cultural training modules. We deliver them all over the world!

 

3. Motivating a culturally diverse team - Challenges and opportunities 

 

What we regard as motivation is closely related to culture and it is often the case that what serves as a motivating factor in one culture is de-motivating people from another culture. That is properly the reason why motivation has found its way to our top 5 challenges for cross-cultural managers. Very often companies have a single-threaded motivation and reward systems based on the norms and values of where the company was originated. when you expand to other cultures and you bring along your motivation system you might experience a decline in efficiency and employee satisfaction because other people might feel de-motivated by the factor that you find extremely motivating. An example: Some people find it highly motivating having a huge influence on how to organize their own job. They like to know what to deliver and enjoy the freedom to figure out themselves how, when and where to get the job done. Other people, however, will feel extremely uncomfortable with that "freedom", because they will expect their manager to tell them how to do their job. In extreme situations, nothing will be done until a detailed roadmap and job description has been provided.

4. Achieve the desired level of efficiency by addressing the top 5 corporate culture challenges

A great deal of the respondents felt that it was difficult to reach the desired level of efficiency in their multicultural team because too much time is spent on sorting out misunderstandings, setting expectations and make everyone on the team pursue the same goals. The reason why this issue ends up on this list is that we initially only see one definition of efficiency. An example: In Gugin we often help our clients improve the decision processes in multicultural teams because there different views on what efficiency is. Some people value to make the decision fast and move on, while others value to take the time to analyze the situation thoroughly, consult their team and then make their decision. People who like to make decisions fast regard the consensus-oriented people as slow and inefficient. But research has shown that people who take individual decisions more often have to have to re-do their decisions than people who opt for collective decision making. So the collective decision making might take longer time, but it has better quality. In reality, we need to do both types of decisions, so reconciling the two views will lead to increased organisational effectiveness.

 

5. Lack of proper training on managing a culturally diverse team

 

And finally, the cross-cultural managers feel that they need the right tools to manage and lead a culturally diverse team. Managing diversity is an important add-on to the management skills they already have. Culturally diverse teams impose some challenges but also a lot of opportunities. If you are not trained to deal with this aspect of leadership you miss a lot of opportunities and you might ignore some cultural challenges that can disturb your goals and objectives.

 

What can you do about these top 5 corporate culture challenges?

 

We are up against our own biology and our own psychology when we are trying to overcome these challenges. From a biological point of view, it is a good thing we are sceptical towards people who are different from ourselves. Staying away from people we don't know has after all secured our survival since we climbed down from the trees on the African savannah. From a psychological point of view, most of us have been raised to be sceptical. Didn't your parents tell you "Don't talk to strangers"? They probably did. So with biology and psychology against us, how can we learn to be open to the world without acting too suicidal? It is a major question I usually always addresses when I do speeches for leaders and politicians around the world. No matter where I am, this essential question always comes up. The short answer is that the challenges we face by living in en complex, fast-moving, globalised world are many. But with the stone-age attitude that has secured our survival for thousands of years, we will perish. The reason for that is that we as a human being have become far more advanced, more intelligent. We also live much closer together than ever before and we have a lot more freedom. These three factors have made us more predictable, responsible and socially conscious. That means that the risks associated with approaching a stranger are much lower than it was 3000 years ago. So we intellectually have to educate ourselves and learn new behaviours and patterns. It is called cultural intelligence and it should be taught in all schools around the world. Unfortunately it isn't but fortunately, a lot of companies have realised the need for developing these competencies so our cross-cultural courses have become very popular over the past decade.

 

About Dr Finn Majlergaard

Dr Finn Majlergaard and his team are helping companies and organisations around the world leveraging cultural diversity. He is a visiting professor at several top-ranked business schools and universities across the globe where he provides insight into how cultural intelligence makes the difference between success and failure in international business. You can see his portfolio here. He can also be booked for corporate workshops and conference speeches .

Connect with Finn Majlergaard on LinkedIn

 

Dr Majlergaard is also a serial entrepreneur and has founded global companies like Educated Singles and Dissertation Nurse

 

 

Dr Finn Majlergaard
Dr Finn Majlergaard

CEO Gugin, Professor, Author, Keynote Speaker, Author

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What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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