For a curious mind, it’s thrilling when something unexpected happens. There’s something new to be probed and understood. So it was with our project to model the real-world economic impact of intercultural training.

After years exploring the available, relevant research and testing different approaches to the mathematical model, I expected diminishing returns from each addition research sprint. The law of diminishing returns is the observation which says the deeper you dive into a new thing, the less reward you get for each additional kick.

The opposite happened. As the model started to spit out results to our research questions, the answers became more interesting and more enlightening.

Here are three striking observations from this work so far.

1. The power of an intercultural lunch and learn

What is the gold standard training format for intercultural competence? A full 3-day module on a year-long leadership development programme, perhaps? A multi-year relationship with an inspirational coach? A multi-channel, multi-session blended learning programme, based on adaptive online learning tech? Yes, these promise impressive results for the learner. Gold standards indeed.

By comparison, a lunch-and-learn intercultural briefing, delivered to busy executives under heavy time pressure, seems like the poor cousin of those Gold Standard formats.

But wait, our training impact model is telling a different story. Based on a new analysis of the cost-side of the ROI equation, a rapid injection of new intercultural knowledge can generate excellent return on investment for organisations which use this method. While the absolute returns on a lunch and learn may be smaller than a full transformational intervention, the rate of return on investment is one of the best, and certainly a good pathway towards more ambitious forms of competence development.

2. An intimate training for 508 participants

The joy and the challenge of modelling intercultural competence are the network effects inside organisations. When a freshly-trained participant starts a collaboration with a colleague who has a low level of intercultural competence, some of the benefit of the training is enjoyed by the non-participant, who gains from more effecient interactions with the trained colleague, and potentially other benefits in achieving their mutual goals.

In this way, intercultural training can impact hundreds of non-participants, who are colleagues of participants. The number in the pool depends on the diversity of the organisation and the participants, the level of isolation of clusters of participants and other assumptions, such as the amount of outward-facing interactions. There can even be benefits of intercultural training for people of the same culture where differences are individual, not cultural.

When your training class attracts just an intimate (small) number of participants, keep in mind that potentially hundreds more who don’t attend will also benefit.

3. The trainer’s bill is a small part of the investment

You can charge the top-end of your price range for your time and provide a gourmet lunch for participants, perhaps with travel and comfortable accommodation, but still the trainer’s and logistical expenses are likely to be dwarfed by the cost of taking productive employees away from their core work tasks, while they participate in your training.

Line managers and anyone with profit and loss accountability knows this. There is some price sensitivity in the market for intercultural training, especially when the procurement department get involved (they are probably not at your meetings to learn about icebergs or onions …). However, what we can see from our model is the importance of looking at the impact side, when an organisation chooses a supplier or selects its own internal training methodology.

Squeezing the trainer’s bill down will have little effect on your return on investment rate. You can truly shift the needle on your return on investment by working together with the intercultural consultant to set the training up for success in achieving performance gains.

The CultureConnector intercultural training impact modelling tool is now available as an early-access programme for customers and contributors in the CultureConnector community.

Looking to the year 2025, Manuela Marquis sees a world where priorities have shifted. New skills are in demand: intercultural competence, virtual collaboration, participative leadership. She founded CrescenTalent to help key individuals and organisations who are already targeting the skills needed in the mid-2020s.

Targeting change in the real world

CrescenTalent is beginning a major initiative to make coaching the trigger to change. Coaching, according to Manuela, goes far beyond skills. “The concept of coaching is fundamentally different to training” says Manuela. “Skills may be activated or developed through training, but the target of coaching is direct change in the real world. This is a solution to the oldest problem of training: transfer from the classroom into work.”

Research-based intercultural coaching

Manuela follows published research on business competences. “The World Economic Forum in 2016 was a particular turning point in my thinking,” she reflects. “Since then, the WEF and other organisations have produced important trend data on current developments and predictions about business skills. We are starting to face the realities of the Fourth Industrial Revolution, which is why I am in collaboration with other intercultural coaches and consultants who want to offer a constructive response to that challenge.”

IMC-coaching, Ceran, ICF, SIETAR, CrescenTalent, ICF and SIETAR

Manuela’s connections to several leading networks mean that she can exchange and develop ideas with fellow professionals from the widest variety of cultures and industries.

IMC, or Intercultural Mobility Coaching is the network of professional coaches with expertise in communication and international management. Ceran is a large training organisation providing intercultural training and consultancy services, with a particularly large community of intercultural consultants. CrescenTalent is a consultancy founded by Manuela. The term crescent originates in the Latin word crescere, which means “to grow”. CrescenTalent focus on developing talent, creating bridges of understanding between humans to boost performance and thus increase competence in a volatile, uncertain, complex, and ambiguous VUCA world. CrescenTalent help businesses to adapt to organisational and technological change in an international environment. The International Coach Federation (ICF) is the world’s largest organization of professionally trained coaches, where Manuela is actively engaged in organising international events for the members in Paris. Finally SIETAR (Society for Intercultural Education, Training and Research), an association for interculturalists, is another inspiration for Manuela.

“Teamwork and collaboration come naturally after working in an American corporate environment” says Manuela “and independence and agility are essential to my business. As the founder of a specialised consultancy firm, we need to be agile in order to conduct change-management fast and effectively”.

Serious intercultural business at Disney

Manuela’s intercultural journey began when she left her native Germany at the age of 20. After some time in hotel and event management in London, Cannes and Luxembourg, she took a role at Disneyland Paris, in their giant conventions business. “Opened in 1992, Disneyland Paris was at first known for its theme parks but not for the convention business. An internal training was organised to explain the difference to the employees as the clients’ expectations were totally different. ”

From her position in Disney’s business event management, Manuela soon found herself managing multi-lingual, multi-cultural teams with similarly diverse clients where all the normal challenges of international business are heightened: integration and diversity, high-profile, quality-conscious, on-schedule delivery of complex projects, layers of national and organisational culture, fast-paced formation of new teams, and a focus on recruiting and developing talent locally and internationally.

Training for a multi-cultural business environment

“Disneyland Paris was a good school for me” says Manuela, considering her ten years in the business-convention field. “With guests from all over the world, we dealt with every possible kind of intercultural interaction. But in our business, hierarchy was the cultural difference we experienced most sharply. I moved into training and became fascinated by the concepts and the pedagogy. Training methodology has a big impact on success.”

In harmony with changes in technology

After leaving Disneyland Paris, Manuela trained as a professional coach, got an ICF Certification and dived deeper into the blending of skills and technology. “Today there is less expatriation, more virtual collaboration. This often divides the generations and different individuals on a team. A personalised approach is important to achieve results.” Manuela enjoys getting hands-on with technology and works creatively with teams to implement new tech and establish successful working practices for online collaboration. “These are becoming essential intercultural skills” she suggests.

Measuring the impact of coaching

“My clients, who are often executives, Directors, VPs or HR people, have always had a clear view of what to expect from intercultural coaching”, claims Manuela. These clients often want their employees to listen to outside views, to get a new perspective through a non-judgemental coaching dialogue. “They want increased self-awareness, to find bridges to other people and work better together. In short, intercultural collaboration skills.”

“With technology, today diagnostics can be done very easily. We can very efficiently do “before- and after” -studies.” Many HR departments among Manuela’s clients need help converting their goals into metrics. “There is much more interest now in measurability, but it is surprising how many top leaders recognise the importance of soft-skills and do not demand a data-driven approach to coaching.”

In a typical 5-10 session coaching series, Manuela targets business transformation. She concludes “During one coaching series we can find the strengths and weaknesses in the team and put them on a path towards solving the challenges of international business they decided to address.”

Human Resources professionals are especially well-placed to bring solutions to CEOs looking to boost business through more efficient operations.

In the Argonaut team, we see a strong link between the PWC research and earlier research by the British Council into the business value of intercultural skills.

HR investment in cultural skills targets multiple benefits

The BC research found that HR people across different sectors were investing in intercultural skills in order to achieve more efficiency within teams.

HR people have known for a long time that cultural fit brings greater employee effectiveness, which saves costs and builds revenue in multiple ways.

HR designing intercultural interventions

Now there are increasingly robust methods for building intercultural skills and enabling organisations to achieve more of these business benefits.

This is an opportunity for HR. When a CEO is looking to make operational efficiencies, we know that this often translates into out-sourcing, lay-offs, job-cuts, down-sizing and other measures which can damage employee engagement the longer-term development of the organisation.

HR can bring an alternative which is a proven motor for revenue growth. With well-designed, targeted interventions, the benefits can appear quite rapidly in business bottom lines.

Culture impacts half the Top 8 agenda items for CEOs

And it’s not just in response to economic pressure that HR can bring intercultural solutions to drive revenue growth. PwC’s research shows a “Top Eight” of issues on the CEO agenda where intercultural skills can be the success factor unlocking business benefits in a least half of the categories.

In tough times as well as good times, HR professionals who know how to design high-impact intercultural interventions can be the revenue-boosting heroes of their organisation.

Sources

• PwC CEO Survey
• British Council, Booz Allen Hamilton, Ipsos study