Let's discuss the ways culture affects teams and businesses, and some qualities to look for while recruiting that can indicate cultural competence. By understanding the way cultural differences can potentially affect your team, you'll be better equipped to create and train a team that is able to understand each other and work together as a cohesive group. American cultural anthropologist, Edward T. Hall, once said, "The greatest barrier to business success "is the one erected by culture." Culture has a big influence on how we interpret information and can affect diverse teams significantly. For example, if I say, "I disagree with your analysis." My statement can be interpreted differently by you and other members of the team. One team member may see the statement as an opportunity for growth, deciding that more analysis is needed or that a different approach should be considered, but you may see the statement as a challenge or a sign of disrespect. Inaccurate interpretation of people's actions and statements may lead to misunderstandings, which may in turn lead to a breakdown in engagement, trust, and productivity. Companies deliberately bring together team members from different backgrounds to encourage divergent thinking with the hope that it will lead to more innovative business solutions, but cultural diversity within teams may not naturally lead to the positive outcomes many managers expect. The things that make us different from one another can also trip us up and make collaboration more challenging. Communicating across cultures may lead to misunderstandings and hard feelings, which in turn may lead to disengagement or the breakdown of the team. On the other hand, cultural competence enhances team engagement and cohesion. A culturally competent manager is able to get the best out of their team, and culturally competent team members work better together. Now, let's talk about how culture affects business. Just as a team is impacted by its individual cultures, business is also impacted by culture. Expanding your business into global markets requires deep cultural understanding. Let's say your organization wants to expand its market to include South America. In addition to researching the demographics of the countries you want to do business in, you will need to ask important questions about the culture of its people, such as, what are the values of potential customers in the region? What is the most respectful way to market our products to them? And how can we get government approval to launch our business? These are just some of the many questions impacted by culture. The truth is that almost every business function is influenced by culture. People who work in supply chain management and global procurement sourcing need to understand cultural differences to negotiate better terms, people in sales need to understand different cultural views regarding the purchasing experience, and people in manufacturing and operations need to leverage culture in order to get peak performance from their employees on the manufacturing floor. Global companies are not the only ones impacted by culture. It's not unusual to work side by side in domestic companies with people who are first or second generation immigrants with strong cultural roots in other countries. Businesses located in countries with lenient immigration policies, such as Canada and Germany, often have very diverse workforces. Some managers may not have experienced working with diverse teams. A wheat processing plant in Kansas may have been primarily staffed with white, English-speaking team members in the past, but over time, may have become more diverse with team members from Mexico, India, Vietnam, Guatemala, and China. Cultural competency is a new skill that the wheat processing plant managers will need in order to be more effective leaders. Cultural competence exists not only at individual and team levels, but also at the organizational level. Businesses that are culturally competent typically have greater diversity represented in leadership and management. Leaders understand that building a diverse workforce enhances engagement and understanding on the customer level as well as improves the organization's response to an increasingly diverse market. Because of this, cultural competence is something they train and recruit for. In fact, cultural competence has become one of the top focuses for talent management and development.