One of the biggest challenges leaders have to face in an increasingly connected and diverse world is learning to operate in a multicultural business environment.

Hence, leaders need to develop their transcultural leadership skills to successfully work in and across different geographies while steering companies into new markets and driving growth. J. Frank Brown, dean of the international business school INSEAD, stresses it is absolutely critical for leaders to be aware of cultural differences when operating in multiple countries as it affects business negotiations. He emphasises the deals that have fallen through due to cultural misunderstandings. “People get angry with one another because the levels of directness are an insult to one culture and normal to another.”

With more companies globalising their operations, leaders can only be successful if they have a diverse team with a worldly perspective. Brown believes it makes a difference as leaders will make better business decisions with different cultures onboard. “A company that is based in other parts of the world cannot develop a business in Asia without having people from Asia on their leadership team and vice versa.”

According to Brown, the basics of transcultural leadership are awareness, emotion quotient, patience and willingness to listen and learn. Travelling extensively and living in other countries will also help leaders to gain a better understanding of other cultures. Nonetheless, Brown maintains that effective transcultural leadership has to start from basic communication and seeing things from another’s point of view. “They have to operate from a standpoint of understanding that everything’s different and not assume that people should reconcile their own identities or cultural perspectives.”

Based on his book, The Global Business Leader: Practical Advice for Success in a Transcultural Marketplace, Brown shares some best practices for HR to develop transcultural leaders. Depending on the size and capability of the organisation, he says it should identify at least five top talents and give them opportunities for mobility and allow them to work in multicultural teams. Letting talent experience different business environments and cultures whilst young will allow them to have a more flexible mindset as they grow with the company. Brown says, “Chances are these employees will be willing to relocate with their families as they mature as business people.”

Besides mobility programmes, Brown further suggests HR develop networks around the world where their people can share ideas. Brown says, “Encourage employees to get external exposure early on in their career. They should look to join communities, boards or societies. Join alumni associations to get connected.”

Assigning mentors from different disciplines to leadership talent can also help them “get through the whole organisational life and get connected to the outside world”, adds Brown.

Other support tools include establishing relationships with educational providers and developing programmes specifically for the organisation. Brown says providing educational supplements such as online checklists, online suggestions and additional reading will also help the talent progress faster.

Finally, HR can play a very important role by encouraging leaders not to be homogeneous. Brown says, “The one most likely to succeed will not be the one surrounded by people roughly the same age, the same gender, the same nationality and from the same school.”