It is now widely recognised that cultural competence is a crucial leadership quality in today’s globalised world—enhancing team performance, driving innovation and strengthening brand resilience through inclusivity. It involves understanding and adapting to diverse cultural perspectives, which fosters a respectful and effective workplace, something every organisation surely aims for. However, developing this competence presents some specific challenges. This follow-up article tackles some of the practical hurdles faced by organisations as they seek to embed cultural competence. It also outlines strategic approaches and considers long-term sustainability practices that can ensure that cultural competence becomes an integral, enduring part of organisational culture, rather than a one-time initiative.

When developing cultural competence within an organisation, several significant challenges can potentially impede progress:

Unconscious Bias and Stereotyping | Implicit biases—automatic, unconscious judgments about individuals based on their cultural backgrounds—can subtly influence workplace dynamics. For instance, studies have shown that job applicants with ethnic-sounding names often receive fewer interview callbacks than those with traditionally Western names, illustrating how biases so easily impact hiring decisions. In team environments, these biases may lead to stereotyping, where individuals are categorised based on preconceived notions rather than merit. This often impacts how tasks are assigned, how team members interact, and who is seen as a leader or innovator. The presence of unconscious bias erodes workplace inclusivity, creating environments where certain groups may feel undervalued.

Communication Barriers | Language differences and varying cultural norms can lead to misunderstandings, misinterpretations and, at times, workplace friction. In a culturally diverse team, differences in communication styles—such as the degree of directness, formality, or even body language—can lead to confusion. For example, in cultures where direct communication is valued, feedback may come across as blunt or even offensive to those from cultures that emphasise indirect or nuanced language. Additionally, differing norms around acceptable expressions, gestures and idioms can cause minor but impactful miscommunications. This becomes particularly pronounced in global teams or multinational organisations, where team members interact across vast cultural divides.

Resistance to Change | When implementing cultural competence initiatives, leaders often face both organisational and individual resistance. Employees may be hesitant to adopt new practices, fearing disruption of established routines or perceiving such changes as unnecessary. In traditionally homogenous industries, such as tech or finance, initial attempts to foster inclusivity have sometimes led to backlash or tokenism accusations. At the organisational level, inertia, or the tendency to maintain the status quo, can slow down the integration of culturally competent practices, even when diversity is a stated goal. This resistance underlines the complexity of fostering genuine inclusivity in established organisations.

Developing and leading culturally competent teams requires a multifaceted approach that focuses on continuous learning, inclusive leadership, and strong organisational support.

Training and Education | A foundation of cultural competence lies in continuous learning through structured training. Cultural competence training helps team members understand the values, communication styles and customs of different cultures. Rather than one-off sessions, ongoing training programs ensure that cultural awareness is an evolving skill, adapting as team demographics and global norms change. For instance, Google offers unconscious bias training to its employees, equipping them to recognise and mitigate biases that could affect workplace interactions. Such training enhances empathy and understanding, fostering an environment of respect across cultural lines.

Inclusive Leadership Practices | Leaders play a critical role in modeling culturally competent behaviours. Inclusive leadership emphasises practices such as active listening, equitable decision-making, and fostering open feedback channels. Active listening ensures that all voices are genuinely heard and valued, while equitable decision-making helps leaders avoid favouring certain cultural perspectives over others. Leaders can also facilitate open feedback channels where employees feel safe expressing concerns or ideas. When employees witness their leaders actively valuing diversity, they are more likely to engage fully and authentically. An example is Unilever’s CEO, who has implemented policies for inclusive leadership by encouraging open dialogue and ensuring diverse representation in leadership roles.

Organisational Support and Policies | Human Resources (HR) teams play a crucial role in embedding cultural competence into organisational policies. HR can support diversity through initiatives like flexible holiday observances, which respect various cultural and religious practices, and mentorship programs that pair employees across cultural backgrounds. Policies that support diverse hiring practices and equitable promotion criteria also contribute to a more culturally inclusive workplace. For example, Salesforce has implemented policies to create a supportive environment for diverse groups, including gender, cultural and ability-based communities, ensuring inclusivity is woven into the fabric of the organisation.

Case Study: Microsoft

Microsoft exemplifies cultural competence in action. Under CEO Satya Nadella, Microsoft adopted a growth mindset that embraces diversity and inclusion. Nadella promoted cross-cultural understanding through empathy-focused leadership and organisational policies supporting global inclusivity. Microsoft’s commitment to inclusivity is reflected in its diverse leadership team and supportive employee resource groups. As a result, Microsoft has experienced high employee engagement and loyalty, while its diverse teams continue to innovate in new, culturally relevant ways, enhancing the company’s global reach and reputation.

Whether or not the old adage ‘if you cannot measure it, it doesn’t exist’ is really true, measuring and sustaining cultural competence is generally essential for organisations aiming to create inclusive environments that adapt over time. By establishing metrics and incorporating feedback, organisations can maintain cultural competence as an evolving capability that supports long-term success.

Assessing cultural competence | This begins with identifying key metrics at both individual and organisational levels. At the individual level, metrics might include participation rates in cultural competence training, feedback on intercultural sensitivity, and behavioural assessments reflecting inclusivity in daily interactions. At the organisational level, metrics such as diversity retention rates, employee engagement scores across diverse groups, and representation in leadership can provide insight into the overall effectiveness of inclusivity efforts. For example, Google uses metrics on diversity and inclusion in hiring, promotion rates, and employee satisfaction surveys to gauge its cultural competence initiatives.

Sustainability Practices | To sustain cultural competence, organisations must prioritise continuous learning, adaptation and responsiveness. Cultural norms evolve, and so must an organisation’s approach to inclusivity. Providing ongoing training, developing mentorship programs that foster cross-cultural understanding, and encouraging employees to stay current on global diversity issues are ways to keep cultural competence relevant. Additionally, leaders must support and model adaptive behaviours, showing commitment to inclusivity as an integral part of the company culture rather than a one-time initiative.

Feedback Mechanisms | Creating safe spaces for feedback is also vital for sustaining cultural competence. Regular, anonymous employee surveys, open forums and cultural feedback sessions allow individuals to share their experiences and insights on inclusivity efforts. For example, Microsoft holds feedback sessions across diverse employee resource groups, fostering a culture of accountability and helping leadership refine diversity strategies. Feedback mechanisms not only identify areas for improvement but also empower employees to actively contribute to a culturally competent environment. A culture of accountability, supported by leadership, ensures that feedback leads to tangible action, fostering trust and a sense of belonging across the organisation.

Cultural competence is vital for today’s diverse workforce, driving both organisational success and social cohesion. By fostering inclusivity, innovation and adaptability, culturally competent organisations build stronger, more resilient teams. Leaders are encouraged to view cultural competence as an essential, ongoing strategy, integrating it into all facets of business. As the workplace continues to evolve, cultural competence will be crucial in shaping inclusive norms, enabling organisations to thrive in an increasingly globalised world. Now is the time to commit to this transformative approach for sustained impact.

And what about you…?    

  • In your view, what are the greatest challenges your organisation faces in sustaining cultural competence over time, and what could help address these challenges?
  • How might increasing cultural competence impact the long-term success and adaptability of your organisation in a globalised market?