How a Lack of Trust Undermines Leadership in Multicultural Teams

Imagine a team meeting where ideas are shared freely, collaboration is effortless, and diverse perspectives are welcomed and celebrated. 

Now, contrast that with the reality of many meetings you have probably walked into where one person rules the discussion, silence reigns, ideas are withheld, and some feel neglected while others feel the tension from lack of action.  

The difference? Trust.

 

Trust is essential for successful leadership in multicultural teams 

The lack of trust can easily hamper your ability to lead a team, serve customers, negotiate, sell, innovate, or even know what is happening in the team. Many leaders assume we’ll be fine if we don’t create ill will or distrust. But you have to focus on building trust. Here’s why:

After receiving my MBA in the UK and managerial experience in Europe, I became a multicultural team leader with several members from a more hierarchical and relationship-oriented cultural background than mine. At first, it felt very flattering when they seemed to agree with all my decisions, but it also turned out that I did not always have my finger on the pulse of what was happening with the projects. 

The same distancing from dealing with the critical matters at hand repeated with leads and clients - it was as if no one wanted to talk about the things we needed most to talk about. 

 

"It took me some time, but I realised I needed first to focus on building trust and personal relationships."

 

When I focused on doing that with the local business partners, I saw the transformative power of trust. It didn’t matter if our company had the most cost-effective solution or the best service unless we also had a personal level trust. 

The moment I turned my attention to better leadership of my multicultural team and focused on building trust with the individuals, our efficiency and creativity soared. Suddenly, we were showcased as an example of a high-performing team, and other colleagues envied our results. 

Reflecting on this experience, I wondered about the prevalence and implications of the issue of trust. These types of questions have fueled a lot of my career since then, including founding InCultures.

Building trust in cross-cultural teams is not just beneficial; it's essential. According to a Harvard Business Review article by Professor of Organizational Behavior and International Management Andy Molinsky and Ernest Gundling, Ph.D., cross-cultural teams with higher levels of trust report significantly better cooperation and problem-solving effectiveness. 

 

Why is trust building even more crucial in multicultural teams than in others?

Enhancing communication 

Cultural differences can lead to misunderstandings if we do not share rules of conduct. Imagine playing football with someone who thinks they are playing basketball. Trust bridges these gaps, fostering open and effective communication to discuss our assumptions, expectations, and differences.

Unlocking potential 

All teams need psychological safety to unlock the potential of their team members. In a psychologically safe environment, everyone feels appreciated for who they are, can share their insights, and participate in the discussion as full team members. Diverse teams have a wealth of perspectives. Trust ensures these views are shared and valued, leading to innovative solutions.

Building cohesion

In a previous InCultures article on moving from groups to high-performing global teams, I wrote: “It is not the teams with the most talent that are consistently found to be more successful and productive, but the teams that exhibit high levels of psychological safety, clarity of roles, and goal alignment”. 

Trust is a crucial factor in transforming a group of individuals from various backgrounds into a unified team working towards a common goal. Without trust, leading a multicultural team becomes challenging as you manage individuals with low predictability. It will soon drain your energy.

Reducing harmful conflict

Lack of trust and friction arise more easily when we notice someone thinks or acts very differently. When we share a cultural background with others, our expectations of how things work are more often aligned. However, cultural differences can significantly impact this, potentially leading to misunderstandings and conflicts.

Where there's trust, there's less likelihood of misinterpreting the intentions of others, which often arises from cultural misunderstandings.

Molinsky and Gundling cite the organisational behaviour scholar Richard Hackmann from Harvard University: “The best way to ensure a positive process in a team is to create initial conditions that set up the team for success”.

Trust is not just a nice-to-have in multicultural teams; it’s a must-have. It’s the glue that binds diverse perspectives into a powerful force for innovation and success. As a global leader, whether a CEO, director, project owner, HR or team manager, you have a part to play in building that trust.

 

Follow InCultures’ Pia Kähärä on LinkedIn for her latest insights, and join our newsletter for regular updates on how to cultivate a thriving, culturally intelligent team environment.

Wondering if your team is reaching its full potential? Discover key insights with InCultures’ Global Team Success Indicator assessment. This tool offers a comprehensive evaluation of your team's current performance, pinpointing areas for improvement to unlock its true potential.

 

Other InCultures’ blog articles that will help you build trust and approach leadership in multicultural teams strategically:

How to Build Interpersonal Trust Within Your Team: 14 Core Tips for Global Team Leaders

Why CQ is more important for global team managers than IQ or EQ

The key factors contributing to the performance of your international team (that actually help hit targets)

 

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