Inside Cisco's Cultural Intelligence

Did you know that 68% of HR professionals worldwide as McKinsey reports in 2012 are unsure of their own HR strategy? However, if HR management is misguided, team productivity can plummet. Cisco, a global technology company, has successfully addressed this challenge with an interesting approach: Cultural Intelligence (CI/CQ).

In this article, we'll explore why CQ can be key to the success of large companies and is also relevant to everyday teamwork.

Who is Cisco and its HR challenges?

Cisco Systems, Inc. is a global networking and technology giant based in San Jose, California. Originally a router manufacturer, it is now a leader in the networking and cloud solutions industry.

Cisco

However, Cisco also faces major HR challenges, ranging from mass layoffs, caste discrimination, to a lack of racial diversity. All of this has a direct impact on the company's reputation and performance. Here's why:

1) Mass layoffs in 2016.

Cisco laid off 5,500 employees (7% of its total workforce) to shift from hardware to software and cloud services. Their goal was efficiency over instability, but the side effect? ​​Employee morale plummeted and public trust was shaken.

Source: Detik (left) & Denver Post (right)

2). Caste discrimination in 2020.

In a shocking scandal, a Cisco supervisor (from a higher caste) was accused of discriminating against a Dalit employee (a lower caste in India). Their wages and job opportunities were allegedly discriminated against based on caste. This case garnered global attention.

Cisco case discrimination case coverage (Reuters)

3). Lack of racial representation.

Cisco used to consider inclusion merely lip service. They were heavily criticized for having very few Black executives in senior positions, despite their vocal advocacy for diversity.

Lawsuit over lack of racial representation on Cisco's board of directors (Bloomberg)

All these issues demonstrate that diversity is not just jargon, but must be translated into concrete policies.

Cultural Intelligence (CQ), Cisco's key solution?

According to David Livermore (2009), Cultural Intelligence (CQ) is a company's ability to adapt and work effectively in a cross-cultural work environment.

CQ has four key dimensions relevant to Cisco:

1. CQ-Drive → How motivated are employees to learn new cultures?
2. CQ-Knowledge → How deep is their understanding of other cultures?
3. CQ-Strategy → How well do they strategize in a multicultural work environment?
4. CQ-Action → How flexible are they in communicating and interacting with different cultures?

In short, the higher the CQ in an organization, the more inclusive and productive their work environment.

Cisco's strategy for addressing diversity issues.

Cisco recognizes this problem and is taking action. They have implemented several initiatives to improve inclusion within the company.

Solutions to caste discrimination:

• Ensure equal employment opportunities without regard to social or cultural factors. Increase diversity training for all employees.

Cisco

Solutions to racial underrepresentation:

• Target a 25% increase in Black employees at all levels of the company by 2023 and a 75% increase in director positions and above.
• Implement training and mentorship programs for minority groups.

Cisco begins focusing on diversity & inclusion programs

However, Cisco appears to be quite serious about maintaining transparency and ethics in its workplace. As seen in the data below, the number of reports submitted to the Ethics Office increased in 2019 before declining again in 2020. This could indicate two possibilities:

1. Perhaps there is increased employee awareness of reporting issues.
2. Perhaps there are system improvements so that ethical issues can be prevented before they escalate.

Furthermore, when looking at the report categories, alleged ethical violations (47%) are the most frequently reported. This shows that Cisco still needs to strengthen its education and internal compliance systems to create a healthier and more ethical work environment.

RAPID: Cisco's diversity and inclusion program.

Cisco also has a dedicated program, the Rapid Action Group for Inclusion and Diversity (RAPID), run by internal volunteers. Their role?

• Help develop diversity and inclusion policies annually.
• Maintain a fair and open work environment for all employees.
• Increase minority representation in strategic positions.

The result? Cisco is starting to build a more open work culture, although much work remains to be done.

Previously, Cisco also received recognition as a "Great Place to Work," which is not just a title, but tangible proof that Cisco has succeeded in creating a work environment that is not only comfortable, but also innovative and supportive. This award is given based on a global survey that assesses employee satisfaction, company culture, and the inclusive policies implemented within the company. So, not only do employees feel at home, but they also feel valued and supported to grow.

Diversity must be demonstrated, not just proclaimed.

Cultural Intelligence (CQ)-based HR management could be a solution for companies like Cisco. With leaders who have cross-cultural understanding and the right CQ strategies, Cisco can build a more inclusive and equitable work environment.

Diversity isn't just about numbers or policies on paper. The challenge is how this culture is truly implemented in every aspect of the workplace. If this is successful, Cisco will not only become a technology giant but also a role model in creating an inclusive workplace.