Multilateral communication: a strategic skill for a VUCA World

In today’s global economy, multilateral communication is at the heart of organizational success. Yet, 70% of international ventures fail due to mismanaged cultural differences (International Labor Union, 2020). This alarming statistic highlights a critical, often underestimated reality: the complexity of interactions among stakeholders from diverse cultures, interests, and governance systems.

According to a survey by the Economist Intelligence Unit (2020), 90% of executives across 68 countries view multicultural leadership as their top challenge to remain competitive. This becomes even more pressing as companies now generate over 50% of their revenue internationally (McKinsey, 2015).

Cultural Intelligence (CQ) is defined as "the capability to function effectively in culturally diverse settings" (Ang et al., 2007). Unlike cognitive intelligence (IQ) or emotional intelligence (EQ), CQ enables leaders to adapt behaviorally across cultural contexts, making it essential for high performance in global environments.

• CQ enhances intercultural negotiation (Imai & Gelfand, 2010),
• Increases creativity and innovation in multicultural teams (Chua et al., 2012),
• Boosts global leadership performance (Rockstuhl et al., 2011).

The lack of CQ carries a significant human and financial cost. Deploying an expatriate costs on average $700,000 in the first year, and 99% of early failures in these assignments are due to cultural issues (International Labor Union, 2020). Beyond financials, poor cultural adaptation leads to lower productivity, weakened innovation, and missed opportunities.

A McKinsey (2015) study found that companies in the top 25% for ethnic diversity are 35% more likely to outperform their industry’s financial average. Cultural diversity, far from being a compliance issue, is a strategic growth lever.

Multilateral communication demands not only technical skills but personal transformation. As Lakoff (2004) argues, developing CQ involves "rewiring the brain"—suspending judgments and adopting new cognitive frames. Margaret Wheatley calls this emergence, a process where new perspectives reshape both individuals and organizations.

References:

• Ang, S., Van Dyne, L., & Koh, C. (2007). Cultural Intelligence: Its Measurement and Effects on Cultural Judgment and Decision Making. Management and Organization Review, 3(3), 335–371.
• Chua, R. Y. J., Morris, M. W., & Mor, S. (2012). Collaborating Across Cultures: Cultural Metacognition and Affect-Based Trust in Creative Collaboration. Organizational Behavior and Human Decision Processes, 118(2), 116–131.
• Economist Intelligence Unit. (2020). Global Talent and Multicultural Leadership Survey.
• Imai, L., & Gelfand, M. J. (2010). The Culturally Intelligent Negotiator: The Impact of Cultural Intelligence (CQ) on Negotiation Sequences and Outcomes. Organizational Behavior and Human Decision Processes, 112(2), 83–98.
• International Labor Union. (2020). Global Executive Report on Cultural Barriers.
• Lakoff, G. (2004). Don’t Think of an Elephant! Chelsea Green Publishing.
• McKinsey & Company. (2015). Diversity Matters.
• Rockstuhl, T., Seiler, S., Ang, S., Van Dyne, L., & Annen, H. (2011). Beyond General Intelligence (IQ) and Emotional Intelligence (EQ): The Role of Cultural Intelligence (CQ) on Cross-Border Leadership Effectiveness in a Globalized World. Journal of Social Issues, 67(4), 825–840.
• Wheatley, M. (2006). Leadership and the New Science: Discovering Order in a Chaotic World. Berrett-Koehler.