Cultural Intelligence, what is it and how do you develop it?

Cultural Intelligence, what is it and how do you develop it?

What is Cultural Intelligence?

Wikipedia defines Cultural Intelligence or CQ as “Cultural intelligence or cultural quotient (CQ) is a term used in business, education, government and academic research. Cultural intelligence can be understood as the capability to relate and work effectively across cultures. Originally, the term cultural intelligence and the abbreviation “CQ” was developed by the research done by Soon Ang and Linn Van Dyne as a researched-based way of measuring and predicting intercultural performance.”

That was in 2003. Since then a lot of other definitions have emerged as it always happens in academia. I prefer the original definition of cultural intelligence although it should be expanded into non-work related situations as well.

Why is Cultural intelligence important?

If we go back 40 years or more we lived in a completely different world. The economic wealth was centralised in Europe and the USA with a few isolated wealthy spots in Asia and South America. Trade was limited to good and we didn’t know about outsourcing or international joint ventures in larger scales. Travelling long distances was out of reach for most people and communicating over long distances took forever and was really expensive too.

The rise of emerging- and frontier markets, technological developments, de-regulation and many areas across the globe and increased political stability fueled the development of a new era; globalisation. With globalisation came migration of people who wanted to work or study elsewhere – far away. International joint-ventures and partnerships, as well as outsourcing of production and later services, became the norm. The rise of the new economies and development of new middle classes lead to a much more balanced global ecosystem with the global wealth more distributed than ever before in history. A sign of that is that the US part of the global economy has declined by more than 50% from 1960 to 2014 according to Forbes. That is good news for the world.

The distributed wealth, distribution of work, migration and global consolidation id the reason why possessing cultural intelligence is one of the most important leadership skills you can possess.

Leaders with low cultural intelligence fail badly

The rapid change in the demand for new leadership skills has left a lot of leaders behind who fail badly despite that they previously were very successful and experienced. It is a situation you can compare to the early days of the IT revolution. At that time in the early 70’ies, you could find leaders who saw the potential in IT and you could find leaders who resisted its introduction. Today we have leaders who believe they will remain successful and they know everything worth knowing about leading people.

And when they feel the pressure to understand cultural diversity they fall into using foolish simplistic, cultural stereotypes developed by Geert Hofstede 50 years ago. Read here why you should never use Hofstede simplistic view on cultural differences

How does Gugin train leaders to become cultural intelligent?

We have always argued that cultural stereotyping is a stupid thing to do (excuse my french). We all belong to a large number of different cultures. You belong to cultures associated with your job, gender, age group, lifestyle, sexuality, education, religion, interests, nationality and many more. Think for your yourself. Which of the cultures you belong to is the most important?  We have asked more than 6000 people (clients of ours) across the globe. Les than 5% felt that their national culture was the most dominant one. More than 85% had a mix of cultures where more than 2 cultures were equally important.

Therefore it makes NO SENSE dividing people into national stereotypes and assume they share common behaviour and values.

Instead of stereotyping we train our customers to identify and reconcile cultural dilemmas. This way you respect different points of view, different values and different behaviour equally, and none of the parties involved feels they are in a competition.

Traditional cross-cultural training based on Hofstede often assumes that cultural differences are a problem that calls for a solution – a compromise. With that approach, you will always lose because you don’t leverage the full potential of having the cultural diversity.

Apart from focusing on reconciling cultural dilemmas another aspect of possessing cultural intelligence is the ability to focus on the commonalities instead of the differences when you engage with a group of people who is different from your own. It takes some training to learn it. Here is a test to check your own or your colleagues level of cultural intelligence when it comes to focusing on the commonalities instead of the differences.

We also train you to understand other people’s value systems. That is a very important skill to have. If you judge other people’s behaviour with your own norms and values you will inevitably create a lot of unnecessary trouble both for yourself and others. You will let people down you need to be close to you, you will lose opportunities you would have won if you had been more cultural intelligent and people will leave you because they consider you arrogant. We have seen it all over the 17 years we have worked with clients all over the world.

Here are some cultural intelligence training for your organisation

Gugin Course module: Cultural Intelligence 1
Topics covered
There is more than one right way to do things.
The layers of Culture.
Identifying other people’s norms and values.
Cultural Identities.
How to change your own behaviour.

Cultural Intelligence 1 is also available as an online course here

Gugin Course module: Cultural Intelligence 2
Topics covered
Avoid cultural stereotyping.
Identifying cultural dilemmas.
Reconciliation of cultural dilemmas.
Motivating cultural diverse Teams.

See all Gugins courses here

Please contact us for a discussion on how we can upgrade the leadership skills in your organisation. We deliver the courses across the globe for companies, organisations, corporate universities, business schools, governments, non-profit organisations etc.

 

Dr Finn Majlergaard

Dr Finn Majlergaard

CEO Gugin, Professor, Keynote Speaker, Author

Dr Finn Majlergaard is committed to helping organisations around the world leveraging the cultural diversity. As CEO of Gugin, he and his team work all over the world in almost all industries. He does a lot of conference- and corporate speeches, contributes to leadership magazines and teach at a number of business schools and universities across the Globe

Connect on LinkedIn and Twitter here:

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5 reasons you will never become a Leader

5 reasons you will never become a Leader

Do you want to become a leader ? Are you already a leader? Read on an discover what we believe it takes to become a leader irrespectively of field, geography, culture or age.

A lot of people want to become a leader. This article is about why you most likely will fail to become a leader. The article is also about what you can do yourself to change that situation. But you will probably find it is much harder than you anticipated.

The difference between a Leader and a Manager

There are many different definitions of leaders and managers. The one we use in Gugin is very simple. A manager is appointed by his or her boss while e leader is appointed by his or her followers. So the manager title is one that is ascribed to you while the leadership is one you have earned because a group of people trust you to lead them in a particular direction.

That means that becoming a manager is easy while becoming a leader is extremely difficult. If you want to become a leader you should also know that it is associated with a lot of risks while the acknowledgement you will get might be very limited if not totally absent – at least as long as you are alive.

So why is it that so many people want to become a leader? Inc Magazine has written a number of articles on this subject and you can read one of them here.

In this article, I will focus on why you don’t succeed in becoming a leader. The article is based on the hundreds of leadership workshops I have facilitated over the years almost all over the world. The aspiration is not enough – it might actually be your biggest obstacle.

Below are our findings for why you will not become a leader. All of them might not apply to you but one or more will like do. So afterwards you should think about first if you really want to become a leader and second how you are going to change so that your aspiration of becoming a leader can become reality. Our coaches can help you through the change process. Get in touch here so you can learn more about how we will make that happen.

1. You will not become a leader because you don’t trust your instincts

People will look at you as a leader if you can see things they can’t see; if you can come up with solutions they didn’t even think of. Think about the people who have changed the world. Think about people like Mahatma Gandhi, Nelson MandelaNapoleon BonaparteJulius Caesar and many many more. Did they go to business school taking leadership classes? Did they apply for manager jobs? No, they didn’t. They had a passion for change – good or bad, and they believed they could achieve their goals through persistence, courage, creativity and instincts.

Have you ever been wanting to do something no one else in your social group has done before? If yes, then you are probably familiar with the common reaction that some people will give you 100 reasons why you won’t succeed.

If you don’t have a very strong instinct for that you are going to do the right thing you will never get it done. If you want to become a leader you have to put common sense aside with all the warnings your surroundings will give you and move in the direction your instincts tell you to move. Can you do that?

2. You will not become a leader because becoming a leader is your objective

People will choose you as a leader because you can take them somewhere they can’t go on their own. They might not have the skills, the courage, the creativity or the time. So they choose you as a leader. They choose a leader out of pure egoistic reasons. They don’t care about you, they only care about themselves. They only reason they care about you is that you can get them where they want.

If they can see or feel that your main objective is to become a leader they will choose someone else – wouldn’t you do the same thing?

If you have to pass through a minefield and you have no clue where the mines are who will you choose to lead you? 1. The minesweeper who put his own life at risk by leading you through the minefield or 2. The person who will draw you a map showing where you can walk?

If you are not entirely focused on the objective and goal of your cause you will never be considered a leader.

3. You will not become a leader because you have a low level of integrity

Remember; You cannot decide to become a leader. You are chosen by the people who need you as a leader. When they do that they look not only for your particular skills needed to lead them. They also judge whether or not you are a trustworthy person with a high level of integrity. By that I mean do you put your actions where your mouth is. Do you mean what you say, do you do what you say and do you do what you do because it is the right thing to do.

Unfortunately, a number (a lot actually) of business “leaders” think they can separate their personality from their job. They cannot despite they claim they can. We also have different perceptions of what a good leader is depending on the culture we are in but everywhere a good leader goes all in with skills, personality, courage, experience, creativity, fears and love.

If you still want to become a leader you need a way to find out if you have a high level of integrity. A simple way to find out is asking yourself: Would I do this for free or if there were no recognition associated with it? If the answer is yes, then you might have it, but if the answer is no or maybe you certainly don’t have it.

Do you want to develop your leadership skills further? Get in touch today and let us have a talk.

How can we help you?

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4. You will not become a leader because you have insufficient life experience

When a group of people choose you to become their leader you take on a huge responsibility. They have chosen you because they believe they are better off following you than anyone else around. It doesn’t mean you are 100% certain about everything. They have chosen you because they have a fear of doing it on their own. But you probably have a fear too. But you cannot tell anyone.

If you haven’t been in a situation before where you had to hide your own fears in order to make your followers more comfortable you will probably not be very good at it. you can’t share your fear with your followers. That will make them paralysed. You can talk about the risk associated with what you are going to go through together. But you will have to keep your fear to yourself.

Many years ago after a trip to the rainforest in Brasil, I got a lot of worms in my body – and they grew larger. I didn’t feel anything until a couple of weeks later where I was rushed to the hospital. When I was on the table and the doctors were going to put me to sleep the last thing I head from one of the doctors before falling asleep was, “I can’t do this”. When I woke up I was terrified. I had to go through a number of surgeries to get them all out, but that was done at a different hospital.

You need life experience in order to deal with other people’s fear if you want to become a leader. You followers will read your body language as an open book so you need life experience to feel comfortable dealing with other people’s fear, uncertainty and anxiety.

5. You will not become a leader because you have too much education

You might consider that a pretty controversial statement, but you can’t educate yourself to become a leader. You can educate yourself to become a manager but not a leader. Business schools throughout the world do however think that leadership sound more prestigious and attractive than management so they have leadership education instead of management education.

There is an ongoing discussion about whether leaders are born or they have learned to become leaders. Here is what I think – and I might, of course, be wrong.

I think we are all leaders but it all depends on the context. If you in a building where a fire breaks out don’t expect all the MBA’s and other people with leadership certificates to take responsibility for evacuating the building. The people who have less fear than the rest, people with life experience from a similar situation, people who care about others before themselves will step forward and take responsibility for evacuating the building. They are the true leaders. Is it something they are born with or something they have learned? If it is something they have learned they didn’t learn it in a business school.

In Gugin we organise survival trips to the Borneo rainforest for management teams. These teams usually have a well-established hierarchy. But when they are far out of their comfort zone in a dark rainforest with sounds they have never heard before, they are all terrified. But some more than others. Like in the example above you can’t expect the CEO to lead the rest far away from his or her comfort zone. Other members of the team will step forward and take the lead.

That experience revitalises a leadership team completely. You can read more about the trips here

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Your Comfort Zone is the most dangerous Place to be

Your Comfort Zone is the most dangerous Place to be

I recently facilitated a global leadership workshop for a group of very introvert MBA students – actually the most introvert group I have ever had. It was not a group of executive MBA students so they have both their life and challenges ahead of them. One of the major challenges they have is the competition from all the other great MBA graduates out there. I told them, “No matter how good grades you get, there are thousands of people out there who are better qualified than you are. You have to get out of your comfort zone”. I offered them a presentation skills crash course and asked how many were interested. Only a few partially active in the class raised their hands. I dropped the idea again.

These young people who have paid a lot of money to get an MBA will end up unemployed or in jobs way below what they academically deserve because they are afraid of getting out of their comfort zone. What is the point of being the brightest brain on the planet if nobody knows about it? Most actors are actually introvert according to Myers-Briggs surveys, but they have learned to take on an extrovert role when they are at work. Personally, I think introvert people are far more attractive to an employer. It is much easier to train an introvert to take on an extrovert role than training an extrovert to shut up.

But if none of these MBA students has the courage to leave their comfort zone they will end up being run over by less intelligent people with bigger mouths. Business as usual.

Many leaders are afraid of leaving their comfort zone too

Maybe we can explain why some students are reluctant to leave their comfort zones with laziness, lack of social skills, afraid of sticking out etc. but we do expect leaders to lead, to show the way and stand up for their followers.

I and my colleagues in Gugin have been in close contact with many leaders over the years. Most of them have been people leading the companies we have helped with post-merger integration or organisational change But also leaders who have participated in our survival trips or workshops. A number of them have ended up in trouble because they were afraid of change and afraid of making decisions where most of the parameters were unknown or uncertain. In these cases, they ended up doing nothing, which in some cases has taken down their company. A tragic event that could have been avoided if they have had the courage to leave their comfort zone in time. Unfortunately, a  few of these people were then pushed far out of their comfort zone into unemployment and social deroute.

Why are leaders afraid of leaving their comfort zone?

The answer we usually get when asking them directly is that they are afraid of making mistakes and that the image other people (the followers) have of them is way beyond what they feel they are capable of delivering.

As long as the business operation goes smoothly it is easy to live with these high expectations to you as a leader because you don’t disappoint anyone. But as soon as you enter some kind of turbulence e.g. external pressure, takeover or financial crisis you can’t hide as a leader. You have to stand up and show the way through the minefield. And most leaders don’t want to do that because their followers might find out that they are just ordinary human beings with fears like everybody else.

As unlogic as it may sound – a fair number of leaders who end up in that situation decides to do nothing hoping that the uncomfortable situation goes away – and it does, but always with a catastrophic outcome.

We rarely know the leaders we admire. We create an image in our head that fits the need we have right now.

When everything is normal

When everything is normal the followers will never discover their leader’s fears because it is hidden to them and the leader is comfortable leading and managing inside his or her comfort zone.

When everything change

When suddenly the world change it becomes dangerous for the leader. If you go through a merger or acquisition you are as a leader pushed far out of your comfort zone because a lot of new things are happening and people around you start to behave in ways you have never seen before. That change in behaviour influences you as a leader a lot. and suddenly you are in this situation:

The worst case scenario is becoming reality. You, the leader share your fears with the people who look up to you because you too is far out of your comfort zone. In the beginning, you try to pretend you are in control and know which way to go, but your followers rapidly sense that you don’t.

You become afraid and more introvert than ever before. Your followers become more desperate and the best people will leave the company, while the rest either spend their time looking for alternatives or stress themselves out in order to make sense of what is going on.

But it doesn’t have to be this way

We only end up in these chaotic and tragic situations because we let them. We do actually have a choice and you as a leader can make this choice. But you have to make that choice as soon as you can see something unusual is showing up on your radar screen. It is too late to avoid the iceberg when you can see it in front of your windows on the bridge.

When you can see something on your radar screen you don’t know exactly how to deal with getting someone on board who is comfortable with this new situation (A pilot). You are still the captain but the pilot will help you make the right decisions when going through the transition. This way your followers will remain calm even if you are introducing a lot of changes to them.

Unfortunately, we (in Gugin) are often consulted when it is too late. We then have to conduct a damage control instead of planning a safe way through the transition. It is unfortunate for a lot of reasons. The company loses a lot of money, good people, customers and strategic momentum. A lot of people often pay a very high personal cost and we like a lot more acting as a pilot taking the company through a change than acting as a rescue team.

Please get in touch in time.

Finn Majlergaard
CEO – Gugin
www.gugin.com

Get in touch today

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How much cultural Intelligence do you have?

How much cultural Intelligence do you have?

how much cultural intelligence do you have

how much cultural intelligence do you have

Look carefully at the image above. What do you pay attention to first?

Do you first pay attention to that there are three squares or do you first pay attention to the three different colors?

How much cultural intelligence do you have?

In Gugin we teach leaders around the world to become more cultural intelligent so that they can avoid cultural conflicts. And if a cultural conflict arises they will know how to reconcile it because they possess a high level of cultural intelligence. Developing cultural intelligence is like climbing a ladder. It is something you develop one step at a time. In Gugin we have 2 course modules to help you climb the cultural intelligence ladder. They are calles Cultural Intelligence 1 and Cultural Intelligence 2.

One of the first thing we have to learn is to start focusing on the commonalities when we bring different cultures together. What did you answer to the question above? If you answered three squares you most likely have a high level of cultural intelligence. If you answered 3 colors you might consider why you start by focusing on the differences rather than the commonalities.

Start with commonalities

If we start by focusing on the differences when we are in a multicultural setting it might be difficult to see the commononalities later on because we are trapped in the stereotypes. The Dutch research Geert Hofstede created stereotypes about nationalities and by that he fueled more cultural conflicts despite his objective hopefully was the opposite.

If, however we start focusing on the commonalities the differences become less important and more manageable. It may sound simple but please take a moment to reflect and think about what your approach usually is.

This teaser is ofcourse not enough to assess how much cultural intelligence you have, but hopefully you got an idea of how easy it is to get things wrong, and hopefully you will get in touch with us to learn more about how much cultural intelligence impacts performance of both leaders and the organisations they work for.

If you will like to learn more please get in touch either from the contact form on our website or send an email to gugin@gugin.com

Let us make this world a better place to be. It is so easy.

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Challenges of Cross-Cultural Management

Challenges of Cross-Cultural Management

Cross-Cultural Management is challenging. Everyone who has tried to manage a group of people from diverse cultures can confirm that.  That can be people from different departments, different profession groups, different age groups, different nationalities etc. Since we started Gugin in 2001 we have been working with all sorts of cross-cultural management challenges, so in this short article I will try to summarise some of the major, generic challenges we have faced

 Unpredictable behaviour in Cross-Cultural Management

We all have different values, different priorities in life and different understanding of what each word means. Quality, for example, is by some people associated with delivering on time, while others associate it with being perfect, beautiful or robust. We always say we want the highest quality delivered on time, but we all know that the reality often is very different. We have to compromise. We have to either deliver an 80% solution on time or give up delivering on time. The cross-cultural management challenge is that we have different preferences for what is important.

organisational effectiveness

Example: IT outsourcing

We have worked with quite a few clients who were frustrated about that the companies they had outsourced their IT development project too. The frustration related to cross-cultural management develops if the company prioritises delivering on time while the company they have outsourced to prioritises perfection over delivering on time. Both values are important but when you can’t achieve both you have to prioritise. From a cross-cultural management perspective, this is very challenging. We assume we prioritise the same way, understand words like “quality” the same way and communicate the same way. But we don’t.

So suddenly we experience other people behave and prioritise in ways we don’t understand. If we are less experienced with these cross-cultural challenges we get frustrated maybe even angry. If we have a higher level of cultural intelligence we assess the differences in the underlying values and will try to reconcile these differences and find a solution that enriches having different value sets in play.

 Compromising values

Our behaviour is closely linked to our underlying values and norms. As we have different norms and values because of differences in cultures leads to different behaviours. According to ourselves we always behave properly because our behaviour always reflects our own values – even when we do something cruel. Cultural clashes happen when other people’s behaviour compromises our own values. It happens all the time. You may have a value about giving up your seat on the bus to an elderly man, while others do not share that value. When an elderly person comes on the bus and no one gives him a seat you will feel offended – because your values are compromised.

Some years ago I moved from Denmark to southern France. I use to have a coffee at the same cafe every morning when walking the dog. In the beginning, I noticed that the regulars got a small Pain Au Chocolat together with their coffee, while I just got the coffee. I could feel offended. Why do they get a better treatment than me – we are all equal. At least that is how the cultural norms are in Denmark. Everyone is treated equally bad and no one should think he is somebody special. In France it is different and that is one of the reasons why I love living here. By coming to the same cafe often you build a relationship and you show loyalty. That loyalty is rewarded with a small Pain Au Chocolat together with your coffee. If I was not aware of the differences in the underlying values, I could have made a scene ( what some tourists do sometimes). There are different values in different cultures and we are not to judge which ones are right. They are all right in the cultural frame, where they exist.

In business dealing with compromising values is an important issue to reconcile. As I wrote before – norms and values are closely tied to a culture. The norms and values you have in your organisation support your corporate culture, so when you employ new people, outsource to external companies or hire in-house subcontractors you have to make sure that they share your norms and values.

How do you check norms and values?

First, you have to be very aware of your own culture. In Gugin we call that the cultural DNA and we describe that Cultural DNA through our Cultural Due Diligence Process which goes through all the elements of your culture and make the diffuse term “culture” more tangible by looking at all the measurable elements in the cultural DNA.

 Difficult to perform as a manager

Many of the managers we talk to find cross-cultural management annoying and difficult.  Managing cultural diverse groups, because decision processes take much longer time, you have to explain everything and you never know what is going to happen. The managers don’t respond this way because they are narrow-minded or don’t acknowledge that we are living in a globalised world.

They respond this way because they find it difficult to perform well as a manager in that situation because they lack skills and experience in cross-cultural management. The managers have to meet deadlines, deliver high quality within the budgets. They can only do that in a multicultural environment if they know how to manage, motivate, encourage and communicate with a team of people with many different values. That is why developing cultural intelligence is crucial for most organisations.

Managing a culturally diverse team is like eating with a knife and a fork. They are two very distinct tools, but because you have the cultural intelligence that enables you to use the knife in one way and the fork in another – at the same time you can eat a huge variety of food.

Cross Cultural Management

Cross-Cultural Management explained

As annoying it might be working with a diverse group of people it is equally rewarding when you succeed and you experience how much better multicultural teams are when all the members understand the basic elements of cultural intelligence.

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Which Rules are you ready to break to be considered a Leader?

Which Rules are you ready to break to be considered a Leader?

Developing global, cross-cultural leadership skills with corporate clients is very different from doing it with universityBreaking-rules students. I do both and I love it because by understanding the student’s norms, values and aspirations in life I get an idea of how tomorrows leaders are going to be.

In order to understand what makes a leader we have to look at their behavior. And one thing they all have in common is that they brake rules, written or unwritten and they have the courage to take the first step and pursue an idea, vision or dream.

My American students are very polite young people who all want to become leaders, some even global leaders, so in order to have a fair chance to achieve this they first have to learn to brake the rules and norms. It is not an easy task when you have been brought up to follow the rules and when you in most cases get punished for breaking the rules. I did however succeed in making them understand that they cannot stand out from the crowd unless they are courageous, follow their passions, values and ideas. To do that they inevitably have to break and bend rules and norms.

I have been teaching students around the world on this subject for years and lived it out myself, but this semester with my american students was remarkable. Usually only a minority accept that they have to break the rules to become a leader. Previously most of them argued that you can be a good leader within the existing paradigm. To me that is management – not leadership. Please read this article for more discussion on that subject.

But the thing is – true leaders don’t care, so at their exam in “Leadership Across Cultures” I asked them the following questions:

1. How will you develop as a leaders so that you can stand out from the crowd

  • Which rules and norms will you break.

This is what some of the answered to the first question:

“Freeing myself from the pursuit money can provide me with the ability to pursue my true passions”

“I will take time after college to find my own direction that doesn’t necessarily involve a career in a corporation”

“Only by challenging the existing norms you can test the validity. I intend to do that. I am not afraid”

“I will break all the rules/norms that start with – you shouldn’t because you cannot”

“I will break rules by rejecting hierarchy and bureaucracy”

“My home university tries to define success in terms of top-ladder corporate position. I don’t think I will find my joy there”

“I will blow through the norms and rules that stand between me and pursuing passions”

“I do not accept success defined in terms of financial wealth. I want to have a family, work from home while the kids are small and claim the same respect and status as corporate high-flyers”

“I hope to brake the rule of allowing the society to define my career path and my personal choices.”

“I will break the rules and norms of following what those who are older or more experienced say. I will constantly question things and speak out.”

“I will challenge the rules and norms that supports the existing power structure in the US. Our generation need to change the society for the better”

“I don’t want to work for a fortune 500 company like my family and friends expect me to. I’d rather be poor and happy and wealthy and unhappy”

Conclusion

Almost all the students bought into the fact that you have to break the rules and norms in oder to be considered a leader. This is new and it is remarkable, because they are graduating when we have economic turmoil and instability, a high level of uncertainty and a fierce competition to get the attractive jobs in corporate america. With that in mind I would have suspected them to be much more focused on “playing it safe”. But I am pleased to see that they are not. They are reacting against the authorities and the established systems and show a desire to create a different world.

If the findings form my students becomes a trend employers will have increased difficulty in find the right people in the future because:

  • The young well educated americans don’t share the values of the established corporate america.
  • From the answers I got it was obvious that money no longer serves as the motivation factor as it did for previous generations. Success is NOT tied to money.

So the fortune 500 companies in the US are facing a significant challenge in attracting the well educated young people in the future. Possible companies in the entire industrialized world are facing the same challenges, but Gugin Research Unit will have to research that further.

Recommendations – what shall the US corporations do?

First of all they will have to diversify their motivation and reward systems, so that they fit different cultural preferences. In Gugin we have developed a model for that, and by being able to take advantage of the cultural diversity, companies can improve the competitive advantage significantly. Read Gugin’s comprehensive study on this here.

Then the companies have to develop a brand based on trustworthy ethical and cultural values and finally they have to develop a corporate culture that is so inclusive that all the individualistic, bright young people don’t get scared away. How that is done can you read more about here

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