When you take in the news, it's easy to get the impression that the world is becoming less global and more fragmented. From immigration debates to new local laws with harsh penalties, the headlines can often make for sobering reading. Our hyperconnected world gives us unprecedented transparency into geopolitics and increasingly paints a picture of governments pursuing their national interests. But to be fair, that's their job. Fortunately, most governments quietly appreciate that isolation and exclusion are not sustainable strategies for the prosperity of their country.
As an economist by training, I love data. And although the news focuses so often on the negative, our world is experiencing many positives. Recent decades of globalization and multigovernment cooperation has resulted in unparalleled economic growth.
From 1990 to 2015, increased access to capital, open trade and innovation spurred world gross domestic product (GDP) to grow by more than a factor of three, to $74 trillion. During the same period, the number of people across the globe living in extreme poverty dropped by more than a factor of three, from 33 percent to just 10 percent. The World Bank expects that continued growth will bring this figure to less than 3 percent by 2030.
Current projections show that global GDP will rise by 40 percent over the next decade, with most of this growth coming from emerging economies, primarily in Asia. China will likely become the world's largest economy, while India will move from the seventh to the third largest. This growth will lift millions more out of extreme poverty and provide prosperity to those who need it most.
These figures are good news. In my role as head of HR for BP, I deeply reflect on the future role of HR and how our function can help companies seize the unique opportunities created as they expand into emerging regions. Leveraging cultural diversity is a core competence that successful HR professionals must develop. This includes such key skills as demonstrating a global mindset, emotional intelligence, and diplomacy and managing change.
The question for me is not "Does HR have a seat at the table in leading these efforts?" The real question is "Are we ready to lead in this responsibility?"
I'll never forget when Daimler merged with Chrysler in the late 1990s. By most accounts, the cultural integration between the German and U.S. companies was seen as unsuccessful. Many analysts attribute this to a culture clash that could not be reconciled. Just nine years after the merger, Daimler sold the Chrysler brand for less than a fourth of the merger price.
Having extensively worked in both the U.S. and Germany, I am not completely surprised by this outcome. Merging these cultures takes a huge leadership commitment, as well as cultural sensitivity and patience. I'm not sure if many HR professionals would be ready to confidently lead a cultural merger of this complexity and scale.
[SHRM members-only toolkit: Introduction to the Global Human Resources Discipline]
So, by learning from the past and preparing for the future, what can HR professionals do now to sharpen their global mindset and enhance their cultural fluency? Here are four tips:
1. Travel.
In a recent study, market researchers from OnePoll found several surprising statistics about the travel habits of people from the U.S.: Eleven percent have never traveled outside their home state, 40 percent have never left the U.S., and more than 50 percent have never owned a passport. These statistics worry me, as it's difficult to appreciate cultural differences when you've never experienced these differences firsthand. In his book The Innocents Abroad, Mark Twain wrote, "Travel is fatal to prejudice, bigotry and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of the earth all of one's lifetime."
Over the course of my career, I have always taken the opportunity to work in new places and diverse settings. Having worked in London; Chicago; Mumbai, India; Bochum, Germany; Vaduz, Liechtenstein; and other locations, I have learned to appreciate cultural differences, which has helped me to work more effectively across borders.
2. Read and listen to global news.
For most of my career, I have read global newspapers most mornings to understand what is happening in markets around the world. I always encourage others to do the same. Find a news source with a global focus, whether it's the Financial Times, the BBC, the Frankfurter Allgemeine or another global outlet. By doing this, you will become more skillful at thinking outside of your local context as you better understand the interdependence of governments, companies and societies at large.
3. Expand and manage your global network.
Wherever you live, staying in a bubble of like-minded people will provide only a limited perspective of the world. Through a global exchange program, I moved when I was 16 years old from my small village in Austria to Wisconsin. With other students from around the globe, I spent a year immersed in a completely new culture. It was one of the most challenging—and rewarding—times of my life.
As I learned to appreciate the cultural differences I experienced, my worldview expanded, and I saw the value of bringing people from different backgrounds together. I wouldn't be the HR professional I am today without that experience. Take any opportunities you get to spend time with people from backgrounds and cultures different from your own. You will be surprised at what you can learn!
4. Learn a new language.
Last year, MIT researchers found that there is a "critical window," from birth to age 17 or 18, when the brain is most able to learn a new language. Knowing that the HR professionals reading this are beyond this age, why do I still recommend learning a new language? A multitude of benefits come with this practice: You become better at problem-solving, your memory improves, your decisions become more rational, you become more perceptive of your surroundings, and you even decrease the risk for dementia later in life.
On top of all this—and most important—learning a new language will help you open a new "window" of thinking. A language and its words are probably the best representation of a culture's heritage. Gaining these insights will help you to find the bridges and common denominators between different cultures.
These practices will help you—and any HR professional—develop cultural fluency and be better prepared to lead in a global context.
I hope this column has prompted you to think about further developing your global competence, as I truly believe this skill can elevate your HR expertise to the next level. Start today with something small: Pick up a global newspaper, talk to someone from a background different from your own, or plan a vacation to a country you have never visited.
Helmut Schuster is executive vice president and group human resources director for BP in London.
An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.