Improving cultural IQ among employees will be complicated, time-consuming, and expensive. However, some argue that it is worth investing in this way because it promotes corporate reputation, achieves better results in cross-cultural organizations, and allows the organization to adapt quickly to other environments. The Chartered Association of Organization and Growth (CIPD) and the World of Human Resource Organization (SHRM) conducted a study in 2012 to find out the best way to improve cultural intelligence within organizations and businesses. The conclusion stated that customized programs were the highest rated method, believing that the best way was to develop the system specific to the individual organization's needs and knowledge gaps. Likewise, companies are now looking for individuals and employees with higher social IQ skills. It's critical that companies realize how well you act and interact with people who are different from you. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay We've been hearing the words "Cultural Intelligence" everywhere we go lately. So, what is cultural intelligence and why is it so important for global businesses? Cultural intelligence is the ability of people, organizations and businesses to relate to culturally diverse situations and work in them effectively. It is a vital aspect for international businesses because each country they are based in requires a different cultural approach and the ability to get along with the consumers you work with. Global collaboration has become a significant aspect of business success and this cannot happen if companies do not have the cultural IQ resources, knowledge and talents. Developing cultural IQ among employees can be complicated, time-consuming, and expensive. However, many argue that it is worth the investment because it increases company reputation, achieves better results in cross-cultural organizations, and allows the company to adapt quickly to different environments. The Chartered Institute of Personnel and Development (CIPD) and the Society of Human Resource Management (SHRM) conducted a survey in 2012 to find out what was the best way to improve cultural intelligence within organizations and businesses. The result determined that customized programs were the highest rated method, meaning that the best approach was to develop a program specific to an individual company's needs and knowledge gaps. Additionally, companies are now looking for leaders and employees with high cultural IQ skills. For example, Coca-Cola's High Potential Leaders Program requires each participant to be tested for cultural intelligence through the Cultural Intelligence Center. It's important for companies to know how well you interact and communicate with people who are different from you. As markets increasingly merge, companies are forced to make their international products adaptable to the different local cultures in which they are sold. This process is called "glocalization" and to implement it, companies need to be equipped with cultural intelligence. McDonald's Corp. is the largest restaurant chain in the world and operates in 119 different countries. That said, McDonald's implements different menus depending on the country in which it operates. For example, restaurants operating in India have an extensive vegetarian menu. Furthermore, America is one of the countries facing a rapid increase in Asian populations,Hispanic and African American communities which is making companies more aware of the importance of acting and innovating differently for these multicultural groups. Companies are becoming increasingly aware of the importance of cultural intelligence and are still searching for the right ways to implement it. Supporting diversity organizations, donating to nonprofit service groups, and increasing advertising to reach customers are not authentic ways of implementing cultural intelligence. The importance of cultural intelligence within a global organization. Cultural intelligence is becoming an increasingly significant aspect of global business, offering a variety of benefits to companies that work to improve it. As all businesses and individuals become more connected and global collaboration becomes more critical to business success, cultural intelligence – or cultural quotient – ​​(CQ) has taken on new meaning. This is a positive change for all businesses, as it means greater access to more resources, knowledge and talent, offering a dynamic working approach that is not relegated to one location. However, this also means that knowledge gaps related to different cultures and customs are now highlighted more regularly. This can lead to divisions that affect staff morale, the work environment, working relationships and other aspects of the company, all of which affect the quality of the work produced. This is why it is important to promote CQ within a global organization. What is cultural intelligence? Cultural intelligence is more than just cultural awareness and sensitivity, which are also vital within a company; it is the ability to relate to culturally different situations, as well as work effectively in them. Individuals with high levels of CQ are better able to achieve goals respectfully and effectively, regardless of cultural context. No matter how culturally diverse a work environment is, people can still forget that not all experiences, perceptions and perspectives are the same, which can lead to problems with work performance and relationships, as well as causing friction in the workplace. CQ enables people to gain a better understanding of cultures by enabling them to work positively and compassionately with people from different cultures. In essence, then, CQ is developing a more advanced understanding of the traditions, nationalities, corporate cultures and disciplines that might impact a business. The process of acquiring CQ means increasing your understanding of the ways in which different cultures work within business so that you develop language and behaviors in a professional context that enable better problem solving. Benefits of Cultural Intelligence: Being able to manage the differences in working methods and behavior that comes from a mix of cultures operating together within an organization can bring numerous benefits to your company. One of the most important aspects is the fact that it adds a competitive advantage to a company, as CQ improves communication, cooperation, teamwork and performance. In fact, according to David Livermore, president of the Cultural Intelligence Center in Michigan, USA, 90% of top executives from 68 countries said that intercultural skills are one of the most vital skills to stay competitive. This highlights the importance of CQ not just for businesses, but for the individuals within them. Livermore goes on to explain that teams with low CQ underperform those with high CQ.