Picture this: You meet a new business contact at a trade fair. You start talking, and you realize this person is interesting and you would benefit from having in your network. So, you hand them your business card with one hand and make the great conversation feel a little awkward. 

Because a person from Asia expects to get the card with both hands from you, you are paying them less respect.

As the example above illustrates, ignoring intercultural communication can be bad for business!

There are many other ways to be culturally competent--some as dramatic as the example above, others more subtle. And in this post, you’ll learn 5 essential lessons about how to improve your intercultural competence in business and management. But first, you may be wondering:

What’s the difference between intercultural communication and intercultural competence?

Intercultural communication is how we share ideas and build connections with people from different cultures — through words, tone, and even body language.

Intercultural competence is the deeper skill of knowing how to adapt, stay open-minded, and work smoothly with people whose ways of thinking and behaving might be very different from our own. 

For a deeper dive, you can take a look at the Sage Handbook on Intercultural Competence. 

But maybe you’re ready to start improving your business interactions today?

Start building your intercultural competence by learning these 5 surprising lessons.

#1 Language Reveals Cultural Values

In a recent coaching session, helping a client deal with tricky business situations,e were brainstorming expressions you could use to introduce a problem.

My client said something like: "There is a problem with your delivery." Directly translating from German into English, as many clients do. 

Many smart, intelligent, competent, and high-level businesspeople always make mistakes like this, which can have consequences for their business rapport with English speakers. 

Why direct translations can hurt business relationships

When I gave him the English phrase "There seems to be a problem with your delivery," he worried that it was too vague and that he could come off as unsure if there really was a problem.

As a native German speaker, I understand the way of thinking. In business in Germany, if you say this, you might sound insecure. 

But with an Anglophone speaker, you sound negative and too blunt, like you're not trying to solve the problem. I had to learn this firsthand when I was troubleshooting business problems in Ireland. Because you look bad with your coworkers and manager.

In the English-speaking world, you use vague (indirect) language to talk about problems in business. It has nothing to do with you as a person being insecure, far from it.  

It is simply the way language is influenced by culture. Besides, the indirect language is more polite, and it sounds like there is more problem-solving about to happen - less finite.

If you’re in sales, intercultural competence is particularly important. For immediate steps you can take, check out this post 3 Top Traits You Need for International Sales.

#2 Understand the Hidden Dangers of Stereotypes 

Generalisations can become an obstacle when you deal with business partners from abroad. 

Okay, firstly, they might help you create awareness of this particular culture in your brain. Noticing differences in cultural communication can help you be aware. Then, you can adapt your way of speaking and keep observing and learning.

But problems happen when you use a way of thinking for all the people of the culture and maybe even believe it is true.

When generalizations block real connection

Take, for example, one of my former clients who believed that the French don't want to speak English. I could give him counterexamples of French clients and friends who spoke English on a very high level. It didn't help. He had the generalisation in mind that the French don't speak and want to speak English and got rather emotional about it. 

And this is the danger. When you are dealing with a French person and have this generalization in the back of your mind, a sentence that hints at it might slip off your tongue when emotions kick in. And this can lead to disappointment and distrust. 

For further reading on the dangers of assumptions and generalizations, check out this post on intercultural pitfalls to avoid.

#3 Do's and Dont's = danger!

efore businesspeople go on a business trip, they often prepare with “Do’s and Don’ts”. These lists of what to do--and what not to do with people of different cultures make you feel as if everything is under control and more predictable suddenly. That's why sometimes businesspeople are rather keen on them. 

They are handy and give you the most important information in a flash. You don't need to bother with things like reflecting on situations or what different expressions might mean in your situation.

But what if someone surprises you?  What if someone's behaviour or reaction is not on your list? Do you know how to adjust? How do you know when your communication style is not working, and it's time to get curious and try something new? 

Why checklists can't replace true intercultural competence

Let’s use a real-life example. You're getting ready to close a deal in the Middle East and your business partners want to settle with just an oral agreement. In Europe, this can seem surprising, but failing to understand the weight of oral agreements in the Middle East--or being judgmental or shocked at this way of doing things can erode rapport and make it impossible to come to an agreement in business.

Remember that you are dealing with people, and they don't work like a machine whose manual you just follow.

The lists of do's and don'ts narrow your perspective and awareness when you should have an open mind and be flexible in your behaviour.

Many people in business and management already know that avoiding stereotypes is important to prevent bias or discrimination. But there’s more at stake--for you. Stereotypes can silently undermine trust, derail deals, and damage long-term relationships.

When assumptions shape your mindset, you're less able to respond flexibly, ask questions with curiosity, or build real rapport. And that can cost you a lot more than just a missed handshake.

A 2021 study on cultural competence in international business highlights that cultural misunderstandings and stereotypes can directly affect team cohesion, collaboration, and outcomes. Read more here.

#4 Working on intercultural competence? Watch for the things you take for granted.

When you make a decision, do you stop to think about how you make decisions?

Let me guess, most likely you don’t. That’s because decisions work on autopilot in your brain. Which is good because otherwise, you would maybe manage half the number of tasks you are supposed to work on.

What else are you taking for granted? That your international business partners or colleagues make decisions the same way you do?

May I challenge you a little?

Decision-making is different among cultures. In some cultures decisions are made top-down, which means the individual at the top decides.  In other cultures decisions are made through consensus, which means a group (e.g., a team) decides through agreement.

How the things we think about the least hurt the most

When I used to work at an American bank in Dublin, the department leader made all the important business decisions without checking with his team. Occasionally, he checked with some of the supervisors.

Whereas when I worked at a company in Munich, we had a Jour Fix once a week where we discussed important business issues in our team.

In Dublin it was a little strange to me just being informed about the way things had to work without contributing my ideas. 

So, what can you do when you are in a similar situation?

As soon as you notice that things like decision-making are different from the way you are used to, you could check with your colleagues or boss. Find out carefully how decisions are being taken in your office.  

Otherwise, you might also want to read a book on intercultural competence or ask a coach.

#5 Know How Different Cultures Make Decisions and Manage Time

Do you know this feeling when something seems to be very confusing? It is as if your world is upside down. This can happen in intercultural encounters and is more or less normal. Because you are dealing with someone who was brought up in a completely different way than you were. With different values, traditions, environment, etc.

How time perceptions can cause confusion

Let me explain it with an example. I drove for a coaching session to a city 100 kilometers away. I had booked a room for the session and was waiting for the coachee. But she didn’t show up. And I couldn’t reach her on her mobile phone either. 30 minutes later, I was happy to get hold of her husband who explained that she is on her way and should arrive soon. 

Luckily, I could use the room a bit longer so that the coaching session could take place when the coachee finally arrived 45 minutes later.

It was very confusing for me because I didn’t know what was going on and whether I had wasted half a day of my time. 

When I asked my coachee later she explained that punctuality wasn’t something that was important in her culture. Which means she had a different attitude to time. 

As you can imagine, understanding these differences is a crucial part of intercultural competence in management and team leadership.

What can you do in a similar situation? You can check beforehand what attitude to time your business partner, colleague, or job candidate might have. Usually, they might also enquire about your culture and understand that, for example, punctuality is an important value. 

But it is better to be prepared and bring a little more time and flexibility.

Conclusion: Stay Curious and Building Real Intercultural Competence

In this post, we have discussed how culture is shown through language, the impact of generalizations, and the dangers of “Do's and Don'ts”.

Although it might cost your brain much more energy, it is essential to remain curious and open-minded. That way, you can learn a lot about other cultures and have deep conversations with your business partners. 

Generalisations and lists of “Do's and Don'ts”. can have the opposite effect. When you disapprove of what you have learned because you're used to doing things differently, sometimes a situation requires flexibility and a deeper and nonjudgmental understanding of cultural norms. 

When you're closing a deal, a moment of discomfort or an embarrassing cultural misunderstanding can undo months of negotiations. And you need more than a "do and don't" list to change that.

Next steps to strengthen your intercultural skills

Mastering intercultural communication and improving your intercultural competence takes time.

This kind of work often requires some work with an experienced coach. If you have any questions, please get in touch with me. 

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