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Leading Global Teams Effectively
By David Livermore | Harvard Business Review Magazine | May–June 2025 Issue
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3 key takeaways from the article
- Western managers who are charged with leading global teams face a trap. Their expertise and training usually have their roots in Western, individualistic contexts, steeping them in ideals such as autonomy, empowerment, egalitarianism, and authenticity. Yet according to the GLOBE Leadership Studies, 70% of the world’s workforce is collectivist and hierarchical.
- A different approach is needed for leading global teams. Leaders need to develop “cultural intelligence”—a flexible intercultural fluency for adapting to culturally complex situations.
- A good starting point is to understand the most common mistakes that derail Western leaders and learn how to use cultural intelligence to avoid them. Too Much Autonomy. But autonomy is not equally motivating for everyone. Too Much Psychological Safety. It could be at the expense of intellectual honesty and the confidence to challenge the status quo—the exact opposite intention of psychological safety. Too Much Emphasis on Differences. When people become overconfident in their understanding of differences, it can lead to rigid, categorical thinking in which behavior is reduced to monolithic labels like being “German” or “Gen X” or an “engineer.” And Too Much Transparency. Leaders hold a position of authority and honor, and hearing them grovel about what they did wrong may actually erode trust.
(Copyright lies with the publisher)
Topics: Global Teams, Culture, Trust, Leadership
Click for the Extractive Summary of the ArticleWestern managers who are charged with leading global teams face a trap. Their expertise and training usually have their roots in Western, individualistic contexts, steeping them in ideals such as autonomy, empowerment, egalitarianism, and authenticity. Yet according to the GLOBE Leadership Studies, 70% of the world’s workforce is collectivist and hierarchical. These values are characteristic not only of employees in Shanghai and Dubai but also of immigrant talent in Copenhagen and Omaha.
A different approach is needed for leading global teams. It’s not that Western leadership advice is entirely wrong; rather, a global leader needs a larger toolbox and a more refined understanding of when and how to use the tools inside. Cultural sensitivity training and even culture-specific preparation often fall short because they’re too targeted and episodic. It’s like trying to teach a robot how to read and respond to body language with limited training data.
Instead, leaders need to develop “cultural intelligence”—a flexible intercultural fluency for adapting to culturally complex situations. A good starting point is to understand the most common mistakes that derail Western leaders and learn how to use cultural intelligence to avoid them.
Too Much Autonomy. Many leaders who come from individualist cultures fall into the trap of assuming that what motivates them will motivate their team. This often means they don’t see the best ways to motivate people from collectivist cultures. But autonomy is not equally motivating for everyone. Some individuals thrive when their leader outlines clear processes and deadlines, and they struggle to be productive in environments that lack directive leadership. The degree to which individuals want to make decisions on their own, offer recommendations, and chart their own development paths varies widely depending on whether they have an individualist or collectivist orientation. Leading a global team requires more than just knowing broad cultural distinctions; it demands the cultural intelligence to accurately assess each situation and adjust the level of guidance, autonomy, and control to the unique values and preferences of each team member.
Too Much Psychological Safety. Psychological safety is a crucial aspect of effective leadership. According to Harvard Business School’s Amy Edmondson, teams need environments where members feel accepted and comfortable enough to take risks and share concerns without fear of embarrassment or retribution. But in many global teams safety, inclusion, and belonging are emphasized at the expense of intellectual honesty and the confidence to challenge the status quo—the exact opposite intention of psychological safety. Leaders can use an array of strategies to create psychological safety without sacrificing intellectual honesty on culturally diverse teams. One is to develop team norms that guide behavior while embracing diverse perspectives. To ensure that norms are explicitly inclusive, rather than defaulting to the dominant culture’s preferences, leaders can co-create norms with their teams—soliciting input from everyone, identifying where cultural differences come into play, and negotiating adjustments to gain the most from the diverse approaches. Another tactic leaders can use is to adjust the types of questions they ask their teams. For instance, instead of asking a closed question that prompts a yes or no answer (such as, “Are we missing anything?”), rephrase it as an open-ended question that encourages participation: “What are we missing?” Psychological safety is critical, but it must be developed with cultural intelligence to ensure that diversity moves beyond being a politically correct bonus to becoming a genuine source of improved performance and innovation.
Too Much Emphasis on Differences. Understanding our differences has become the holy grail of inclusion initiatives and cross-cultural management training. It’s considered key to building innovative teams. And there’s plenty of evidence to support the power of diversity. Team members who have diverse backgrounds and perspectives offer built-in expertise for tackling problems and viewing products and projects more critically. But overindexing on differences can be damaging. A meta-analysis of 199 cultural intelligence studies by Thomas Rockstuhl and Linn Van Dyne showed that knowing a lot about cultural differences can be more harmful than being culturally ignorant. When people become overconfident in their understanding of differences, it can lead to rigid, categorical thinking in which behavior is reduced to monolithic labels like being “German” or “Gen X” or an “engineer.” In addition, a heightened focus on how we’re different becomes mentally taxing and prevents dynamic, generative learning about one another. One effective strategy for harnessing diversity’s benefits is for leaders to emphasize perspective-taking with their teams. Perspective-taking is the ability to step outside one’s own experience to imagine the emotions, perceptions, and motivations of someone else. Unlike empathy, which can sometimes confuse personal feelings and the team’s mission, perspective-taking enhances cognitive flexibility while maintaining focus on the task at hand. Another way leaders can prevent an overemphasis on differences is by focusing the team on solving a shared problem.
Too Much Transparency. Trust in leadership is at an all-time low. According to the 2025 Edelman Trust Barometer, a majority of people in 28 countries believe their leaders are deliberately misleading them. This isn’t only happening in countries that prefer flat leadership structures, such as the United States and Sweden. Leaders’ credibility is also low in places like Japan and France that prefer top-down leadership. The conventional wisdom in the West is that leaders gain trust by being vulnerable, authentic, and transparent. As former Starbucks CEO Howard Schultz put it, “The currency of leadership is transparency.” But those values chafe against the more nuanced, discreet communication styles preferred by much of today’s global workforce. It’s not that team members from other cultural contexts don’t value transparency; they just expect leaders to communicate transparently in ways that align with their own cultural norms. Global teams need their leaders to have a broader repertoire of communication styles so that they can effectively gain the trust of team members. Western managers are told that owning their mistakes and discussing them openly is crucial for building trust, but for someone from a face-saving culture, it can be disorienting when a leader speaks candidly about a mistake. Leaders hold a position of authority and honor, and hearing them grovel about what they did wrong may actually erode trust. People already know when something has gone awry. Many team members from collectivist cultures would rather see their leader address the issue quietly and restore trust through actions rather than words. Owning mistakes is important, but the way leaders communicate about them needs to reflect the cultural differences on the team.
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