Globalization is a process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications. According to historians, globalization began in the 1490s with Colombus and da Gama. However, globalization as we know it began in the 1980s. There…
Do you remember the outrage the UN had when it discovered how migrant workers in Qatar were treated during the FIFA 2022 preparation last spring? Well, let me tell you a little secret: all migrant employees working on construction sites are treated this way in…
Culture plays a major role when it comes to foreign business settings since it can enable or restrain communication and therefore cooperation. In fact, one of the first things that you will hear when taking an international negotiation course, is that knowing the culture of your counterparty is the starting point for setting your communication style and overall negotiation strategy. That is why most corporate trainings focus on learning about the beliefs, customs and taboos of foreign cultures. This approach will never prepare a person for every situation that arises, nor will it prevent terrible cross-cultural misunderstanding. The only key to cross-cultural success is to develop respect for cultural differences.
However, some people have a seemingly natural ability to interpret someone’s unfamiliar and ambiguous gestures in just the way that person’s compatriots and colleagues would. We call this cultural intelligence or CQ.
There are three elements of cultural intelligence: cognitive, physical and emotional or motivational intelligence. The first element of CQ is related to a person’s ability to learn about a foreign culture – not only through reading books and internet research – but through the everyday interaction with that culture. Trying to understand a foreign culture is still not enough; your actions must prove that you have entered their world and that is what physical CQ is about. If you have a high physical CQ, you have no problems with adopting other people’s habits and gestures which prove that you esteem them well enough to want to be like them. These can be simple gestures like the way you order your coffee but even through mirroring most elementary actions you can truly be ‘accepted’ into a foreign culture. However, obstacles and incomprehension are always present even after entering and, thus, only a confident and motivated person, or in other words, an emotionally intelligent person can be able to cope with such difficulties.
Empirical studies show that companies get a lot of benefits from increased employee CQ levels.
A recent study showed that out of 100 companies that adopted CQ assessment and training 92 per cent of them had increased revenues within 18 months. Executives at every one of these companies credited cultural intelligence as a significant contributor to the increased revenues. In addition, companies that worked to enhance their leader’s cultural intelligence expanded faster to foreign markets and became more successful at attracting and retaining top talent. Talent also became culturally more diversified, which, as research has shown, fosters more ideas and innovation.
Do you want to know what your CQ is and where your weaknesses and strengths lie regarding cultural intelligence? Then, this test, developed by Harvard Business School, can help you assess the three elements of your cultural intelligence. Remember, attaining a high absolute score is not the objective – learning about your CQ in order to improve it is!
Further reading
http://www.forbes.com/2010/01/06/cq-cultural-intelligence-leadership-managing-globalization.html
Sources
https://hbr.org/2004/10/cultural-intelligence
With my Erasmus exchange semester coming to an end I realized just how amazing of an adventure Erasmus exchange actually is. You have all probably heard that before and there has been already a lot written on different experiences students had during their exchange. But…
Today, China is one the most important economic powers of the world. It has been described as the factory of the world. However, the economic rise of China has been recent. Just 30 years ago, China was one of the weakest Asian economies. So what…
It is hard to imagine that a little over 100 years ago the car was still a new mode of transport that only the very rich could afford. But everything changed when Henry Ford’s vision to offer a car affordable to the middle classes came to life with the production of Ford Model T in 1908 (photograph on the right). Fierce global competition has since then pushed the auto manufacturers to produce better cars more effectively.
Innovations in horsepower, safety and rider amenities together with lean production enabled the auto industry to grow steady at an average 3 percent growth rate for the past fifty years.
But at the same time automobile is just one mode of transportation that is governed by extensive regulations, constrained by the need for fuel and dependent on networks of roadways and parking spaces. Over the past half century the ‘rise’ of the car has generated pollution and congestion while straining the supply of global resources. These externalities have become even more obvious with the increasing demand for automobiles in the emerging markets, especially China. Therefore change is on its way and it is a big one.
The first driving factor of change is government regulation. Stricter regulation has been driving automotive development for decades and as the level of urbanization and with it pollution increases so does regulation of automobile use. Singapore has led the way with using variable tolls to smooth traffic flows during rush-hours; low-emission zones to restrict vehicles with internal-combustion engines have grown in the past years in dozens of cities across Europe. Together with emission-dependent taxation there is one goal behind these different policies: zero tailpipe emissions.
This goal together with technology advances marks the beginning of the end of the internal-combustion engine’s dominance on the car market. The interplay of different forces from production costs to customer preferences will ultimately determine whether range-extended electric vehicles, battery electric vehicles or fuel-cell electric vehicles will prevail.
The next cause for transformation are innovations in the digital and information technology. Car of the future will be connected—able not only to monitor its own working parts and the safety of conditions around it, but also to communicate with other vehicles and with an increasingly intelligent roadway infrastructure. As every vehicle becomes a source for receiving and transmitting information over millions of iterations, safety, efficiency and customer satisfaction should improve since automakers and regulators can capture valuable data regarding consumer behavior and vehicle performance. Even with profound changes needed in road infrastructure there is no doubt that digitalizing and electrifying cars in its final stage means the introduction of the self-driving car.
Implications of the introduction of driverless cars are enormous. The elderly wouldn’t have to give up their driver’s licenses as early as they do today. Drunk driving could be a thing of the past. There would be no more confusion about traffic rules (although new rules will have to develop). Keeping in mind that human error contributes to about 90 percent of all accidents, the introduction of crash-free vehicles with optimal security systems finally means no accidents. No accidents means no need for traffic police or even car insurance for that matter.
Current driverless car technology is more developed than you would probably think. Tesla, Mercedes-Benz, Audi, Volvo and Tesla are just some of the brands that are expecting to launch a fully autonomous driving car before 2020. Technology is not the problem, setting appropriate infrastructure and changing minds of regulators and the public in general is the issue, says Dr. Ulrich Hackenberg, Board Member for Technical Development at Audi AG. Audi has been one of the pioneer companies developing driverless technology and Audi’s self-driving RS7 model holds the title ‘fastest autonomous car on the planet’ since its now famous Hockenheim Ring lap without a driver on 19th of October this year (link to video: https://www.youtube.com/watch?v=eOYsI1cqUrw).
Indeed, laws will have to be changed, new driving customs will have to be introduced. Even testing autonomous cars is currently not legal in most countries in the world. We are again facing the same problem as we are with implementation with any new technology – legal systems are not catching up with the technological advancements.
Changes are going on also with the car ownership model, especially among young drivers. Technology and connectivity pose the question of whether it’s necessary to own an automobile. Car sharing services, which allow people to make a reservation at the tap of a personal mobile device, are expected to grow significantly in the next two years.
Moreover, even though introducing self-driving cars together with a complementary road infrastructure means no more accidents and traffic jams on the roads it also defies, at least partly, with the purpose of buying a car. Car is not only a means of transportation but it is provides us with autonomy and it gives us a feeling of self-directed freedom. Google’s prototype autonomous vehicle has no steering wheel, brake pedal, or accelerator.
When a rider needs only to determine a destination, what becomes of the driving experience? Do we even want the driverless car? You decide.
http://www.ft.com/cms/s/2/08929ada-4eca-11e4-a1ef-00144feab7de.html#slide0
https://www-304.ibm.com/easyaccess/industrialsector/gclcontent/!!/gcl_xmlid=164521/
http://www.economist.com/news/leaders/21615599-connected-cars-will-make-driving-safer-cleaner-and-more-efficient-their-introduction-should-be
http://www.globalchange.com/future-of-the-automotive-industry-auto-trends.htm
http://www.mckinsey.com/insights/manufacturing/electrifying_cars_how_three_industries_will_evolve
Imagine… …Your career has brought you so far that you are in an important position, your job pays great and you have enough responsibilities to stay challenged in your work. Your generous salary made it possible to buy yourself a spacious house with a large…
The perfect exchange Name: Mariska Maessen. Age: 21. Study: Master in Marketing Research. Exchange destination: Canada The most important reason for Mariska to go to Canada was the fact that the main language spoken over there was English. “I was also attracted to Canada, because…
In the past, it was not so common for women to enter management positions in firms. Over the years, this has changed. Women apply for management jobs and are even encouraged to do so by society and firms themselves. These days, it is very common to have a proper mixture of both men and women in the managerial board of the firm. However, one might wonder what the implications are now that women can have leadership in a firm as well. In daily life, there are already quite some differences between men and women. Differences we cannot stop talking/nagging about. Personal characteristics are always one of the causes of effective leadership, such as a strong drive for responsibility, self-confidence and an ability to influence the behavior of others. Curious about the difference in gender effects on leadership? Explore it in this blog.
Males are more status-focused with their leadership. They exploit chances for individual advantages, to go “one up”, rather than for the overall improvement of a group. To accomplish this, they appear confident and knowledgeable. Male leaders are not very likely to express their moments of doubt. A man just takes charge, dominates and makes things happen.
Females are quite the opposite with their leadership, since they have more accommodative strategies to influence the overall group performance. They are more willing to express their doubt if this will improve the overall performance of all parties involved. Hence, women might appear as less confident and knowledgeable for leadership positions. Nonetheless, there are three aspects that female leaders can accomplish instead of male leaders: (1) women are more likely to take into account a wider range of stakeholders, (2) they are more persistent in getting answers to uncomfortable questions (as they express their doubt), and (3) they improve communications due to more collaboration between employees.
Despite these differences, one should note that both men and women can provide excellent leadership. Goleman (2000) created six leadership styles, each to be used in different situations. One can create the following distinction between male and female leaders based on those six leadership styles. Depending on the situation, either a male leader or female leader should be chosen for.
|
Style |
Definition |
When to use |
Type of leadership |
| Coercive style | To demand compliance | In a crisis, or if there are problems with employees | Male Leadership |
| Authoritative style | Move people to follow you | Envision a new direction | Male Leadership |
| Affiliative style | Put people first (harmony and empathy) | Motivate people, even under stress | Female Leadership |
| Democratic style | Ask the opinion of others | To create collaboration and teambuilding | Female Leadership |
| Pacesetting style | Set the standards for others | Motivate people to get fast and high results | Male Leadership |
| Coaching style | Develop others | Improve the results and develop strengths of others | Female Leadership |
In conclusion, it is best to have a diverse management board. Males have qualities that females do not possess, and the other way around. Often enough, there is the problem of the so-called “glass ceiling”: an invisible barrier to entry for the leadership positions for women, though the Western society increasingly recognizes the importance of a diverse management board. Moreover, one should note that the distinctions made between gender effects on leadership style are just based on generalizations. There are always some other internal/external) influences on leadership style. First of all, in a male-dominated culture, women can experience a lot of stress and negative mental health by all the pressure they have to deal with (i.e. to prove their qualities). Second, the culture of a country also influences the leadership style. Social expectations are not to be underestimated. For example, some countries have more masculine leadership values whereas others have more social-development values. These social expectations will exist, no matter whether there is a male or female leader in the firm. By having the diverse management board, one can overcome the challenges of male and female leaders, as they will strengthen each other for the best leadership result.
A company should be driven by profitability, or shouldn’t it? There is so much more besides the finance part of a company. Although finance is important in order not to run out of business, it is also important to acquire customers to reach profitability. More…
Let us discuss a controversial issue that, in some extent, I believe should not be classified as such (controversial that is) – organ donations in Europe with more focus on the Netherlands. One could expect that the Netherlands would be in favor of organ donation,…
Quants, engineers and puzzle masters, they all play their part in Michael Lewis’ new book ‘Flash Boys’. ‘Flash Boys’ is a book about High Frequency Trading (HFT) and I enjoyed the light way it handles this topic, so I decided to write a short review.
You might have never heard of HFT, so let me explain it in one sentence. As the book describes, HFT firms make money by scouring the market for buyers and sellers of stock and race ahead of them to transact on the various exchanges in order to burden the original buyer/seller with a disadvantageous price, scalping cold cash in the process. Well, this may still not clear it up for you but it sure shouldn’t sound like ordinary business.
The picture that Lewis paints is one of a corrupted capital market where secrecy has long cloaked the grey area practices of financial intermediaries with HFT. It’s about a market where the common investor gets hit in the blink of a second and an ongoing arms race for speed is approaching the limit, the speed of light. It’s about a market where retirement savings are sucked into the ‘dark pools’ of your trusted Wall Street banks and channelled to the HFT guys. A ‘dark hole’ might better fit the description.
Luckily, the antidote is already on its way in the form of a “fair stock exchange” created by Brad Katsuyama and his band of tech-savvy ronin. Their crusade for transparency is beautifully captured by Lewis in a little north of 250 pages. The last part of the book describes the construction and workings of the Investors Exchange (IEX), the result of Katsuyama’s hard work. The IEX’s purpose is to make sure that all investors have an equal chance for a fair price by intentionally implement delays in its system. As a result, HFT firms won’t be able to detect buyers and sellers before anyone else and so they can’t outrun them anymore. Consequently, market orders are executed at the ‘fair’ mid-point price far more often.
Michael Lewis doesn’t offer an objective view on the HFT phenomenon but rather takes the side of Katsuyama and his endeavour. After reading ‘Flash Boys’, it’s hard not to share his sympathy, because Katsuyama’s story is a story about a man who had the feeling that the market was “rigged”. Once he found out that he and the investing public got screwed with HFT, all he wanted is to develop the right medicine. He assembled a crew of like-minded people and declared war on the status quot. The development of their weapon ‘THOR’, a piece of defence software, and the day Goldman Sachs entrusted the IEX with the first big market orders are some of the climactic events resulting from Katsuyama’s brave fight.
I recommend ‘Flash Boys’ to everyone with a fair interest in Wall Street or investing in general. ‘Flash Boys’ might lack objectivity, but it sure is revealing and has all the great storytelling that we expect from Lewis. Micheal Lewis is known for his accessible financial journalistic work. People interested in the subprime mortgage crisis and the resulting credit crisis might enjoy ‘The Big Short’. But it’s not only Wall Street he writes about, for a combination of sports and the scientific method read ‘Moneyball’ or just watch the movie. 😉
Interested? Check out these links:
– http://www.theguardian.com/books/2014/may/16/flash-boys-michael-lewis-review
– http://www.amazon.com/Flash-Boys-Michael-Lewis/dp/0393244660
Moving through some cities, you might have come across the billboards of “ Big Bang Beans ”. It is an ad claiming that its beans will burn fat. A strange claim, so it might trigger your attention. You will not search for the ‘new product’…
What started as a Silicon Valley trend has now concurred much of the developed world. Technology startup companies are popping out of the ground like mushrooms. What is different about a ‘new’ technology startup from normal entrepreneurial ventures is that these companies can grow big in…
What is this? Do I get an award? Do I become famous? Can I do it? Should I do it?
The Neknomination trend started in the UK the past January, and due to its nature, (drinking + playing) it has quickly spread throughout the world. The basic concept behind neknominating is: You record yourself drinking a half-liter beer as fast as possible (sometimes in “creative” ways) and then you upload the video on social media, nominating three of your friends to do the same (drink/record/nominate) within 24 hours. Should they fail to do so, they are “obliged” to buy you a crate of beers or satisfy any bet already put forth.
The nature of the game is to combine beer and creativity, have fun and enjoy, but an issue that comes into play, especially after the unfortunate incidents of two young males who died because of neknominations, (a teenager got drowned, aged 19 and another, aged 22, was nominated too many times,) is: “To what extent should neknomination be taken seriously?”
Some might argue that “It is their own fault for acting irresponsibly. Nobody forced them to do such crazy things”. To a certain extent that statement could hold, but the line separating creativity and craziness, especially when beer comes along, is a rather thin one.
The correct question, under that context, I believe should be: “Should an idea promoting, even the tiniest bit, of irresponsible behavior be that popular?” A drinking-based-activity that is dependent on your ability to drink a half-liter beer as fast as possible has changed its original purpose. Although I believe it might have indeed started as a fun-game, it has come to be treated by numerous people more as a challenge rather than simply a game.
Do not get me wrong. I am in favor of various drinking games that combine drinking with fun. On the other hand however, I disagree with the extent to which this habit should be publicly endorsed. Peer pressure can always influence your rationality and decision-making abilities. If you want to have fun with your friends, I find no reason why this should be public, let alone forcing others to do the same. It can negatively influence people, not necessarily the ones that are directly participating in the “event”, but also people that come into contact with that video. Nowadays, younger kids have accounts on social media, such as Facebook or Twitter, and easier access to the internet and all the trouble that might go along with it. Thus, when posting videos that demonstrate an, to say the least, ambiguous, behavior we should also take into account whether such a behavior can cause a negative externality to people watching it. Since the possibility that a few number of people can exercise the option of acting, or interpreting the meaning of the game, irresponsibly exists, we should ask ourselves whether we want to consider ourselves as “passively responsible” for transmitting this kind of behavior.
Following debates as to whether social media are good or bad, there has been this new trend throughout the world to dramatically shift the scale, in my opinion, on the negative side. Although not solely responsible for the creation of the #Neknominations trend, social media have, sure enough, been responsible for spreading the “wrong” use and the fact that the game is being misused.
Further reading:
http://www.independent.ie/irish-news/second-death-linked-to-online-drinking-game-after-body-of-teenager-found-29971962.html
http://www.news.com.au/world/two-die-in-ireland-in-neknominate-drinking-game/story-fndir2ev-1226816276525