Leadership and decision-making styles in Denmark, Finland, Norway and Sweden

1. Leadership in
the Nordic
Countries
Denmark, Finland, Norway & Sweden
Management Styles are Culture-Dependent Leadership
From a global perspective the Nordic countries are The leadership style predominant in the Nordic
very similar; and they do share many of the same countries is participative management. The most
fundamental values. A preference for similar important quality for Nordic managers is to obtain
management styles across the region, however, does results in co-operation with employees; a people
not mean that each of the countries should be orientation. Nordic managers rely more on
interpreted in the exact same way. Fine nuances, subordinates and peers and less on formal rules and
subtle as they may be, are often disregarded and superiors compared to managers from other
therefore end up creating culture clashes and countries, however, important contrasts are found
problems. Both domestic firms and firms investing in between the Nordic countries, and the level of
the region can benefit from knowing the cultural participation differs among the four Nordic countries.
sensitivities that distinguish the Nordic countries;
disregarding them may prove costly. The Danish management style is ‘bottom-up and
informal’. Danish managers rely on own experiences
This document will help you to get insight into key and subordinates to a very high degree, while they
management issues across the Nordic countries. The are less dependent on their superiors and rely less on
four countries are approached one by one and crucial formal rules. Danish managers expect subordinates
elements highlighted. to challenge them to a higher degree than is the case
in the other Nordic countries and subordinates will
The cultural differences amongst the four countries also do so.
can take on different meanings depending on which
culture you yourself are from. Your own culture The Finnish management style is characterized by
defines how you look at others. Being Swedish gives a ‘expertise in a culture of equality’. Finnish managers
different view of the Danes than being German. In rely more own epertise and experiences and to a
this document the Nordic cultures are approached somewhat lesser extent on subordinates.
from a non-Nordic perspective. Participative management in Finland is influenced by
structural constraints and a concern for quality.
Organization Finnish managers rely more on rules compared to
In the Nordic countries, corporate structures tend to their Nordic counterparts, however, rules which are
be decentralized with top-light management imposed by others are used as source of guidance less
hierarchies, although Finnish organizations are a little strongly.
less egalitarian than the other Nordic organizations.
The Nordic managers have been instrumental in the The Norwegian management style is ‘bottom-up,
development of the concept of bottom-up collegial’. Norwegian managers rely on own
management. Managers go to great length to experiences and subordinates and co-workers (team-
delegate responsibility and to share power, i.e. work) to a very high degree. Norwegian managers
decision-making with all layers of the hierarchy, and are also concerned about doing what is judged
on their side subordinates expect to be heard and to decent and correct by the broader community. In
be involved in decisions, which concern their work. Norway, there is also a moderately high reliance on
rules.
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2. Participative management in Sweden is strongly organization. Finns prefer to rely on their ‘gut’ feeling
influenced by equality and fairness. The Swedish rather than on more time-consuming political
management style is characterized by ‘conformity in processes. The involvement of subordinates mainly
a culture of eqality’. Swedes place strong reliance on takes the form of consultative discussions and there
everybody following the same consensus-driven is less striving for consensus than in the other Nordic
informal rules and procedures, and are moderately countries. Finnish leaders are slighty more decisive
reliant on own experiences. The Swedish managers than their Nordic counterparts. Finns will sometimes
are also concerned about doing what is judged be slow in making up their minds because they want
decent and correct by the broader community. to have a full overview. Once their minds are made
up, however, they are unlikely to change them.
Decision-Making
The Nordic decision-making style is consensual, In Norway, there is a stronger focus on group-
participative, and inclusive. There is a high degree of decisions, and there is a tradition for sitting down
interdependence and trust, and communication is with the subordinates, agree upon what is to be
open and flows in all directions. Decision-making is done, and then to implement it. However, even if
done by looking for shared interest of all stakeholders there is a high degree of involvement of co-workers in
and to create consensus in order obtain the broadest leadership, it is generally acceptable for the leader to
possible consent in connection with important make decisions. The Norwegians are analytical, focus
decisions. Basically, the same form for pragmatic, on details, and have a relatively strong need for
decision-oriented rationality with a high degree of control of resources. Nevertheless, they are also
objectivity applies to all Nordic countries. result-oriented and good at simplifying things. When
it looks like a decision has been made, however, they
The communicative Danes are more individualistic might actually very well keep on discussing. Once the
and tend to approach things in a relatively final decision has been made, they prefer to act
independent and flexible way, changing their minds quickly.
along the way during the decision-making process.
The Danish managers are result and goal-oriented Swedish managerial decisions are strongly influenced
and they can act swiftly and are able to adapt quickly. by involvement. In Sweden, consensus is extremely
The role of the Danish leader is to cut things short important and Swedish managers will have a more
when the employees have had a chance to argue for patient and understanding attitude towards their
their opinion. Subordinates need to be heard, but one subordinates and will spend a lot of time reaching
does not need to have reached consensus in the same agreement and building group consensus.
way as the Swedes would need to reach consensus. Communicating intensively with as many different
parties as possible is assumed to be an efficient way
The silent Finns are rather dynamic achievers and to reach good decisions. The Swedes are very
decision-makers, who approach decision-making thorough in their planning and often evaluate
pragmatically and with a purpose. When faced with a everything before making their minds up. The
decision, Finnish managers reserve time to think decision itself emerges from the consultation process.
about the issue, gather supporting and expertise
information, and discuss the issue within the
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3. Conclusion References
As can be seen from the above, Nordic leadership is itim International - Country Briefings
an interactive and dynamic process; involving and
including subordinates and co-workers to a very high itim International - Culture Data-base
degree. At the same time, however, cultural
differences contribute to subtle, yet significant Hofstede, G. (2001), ‘Cultures Consequences –
differences in behavior. Successfully navigating the Comparing Values, Behaviors, Institutions and
Nordic countries requires an understanding of the Organizations Across Nations’, Sage, United Kingdom
idiosyncratic cultural differences found between
Denmark, Finland, Norway, and Sweden. Holt Larsen, H. and Bruun de Neergard, U. (2007),
‘Nordic Lights - A research project on Nordic
This document is not a complete overview of the leadership and leadership in the Nordic countries’,
many cultural differences and similarities amongst København
the Nordic countries, it should more be seen as key
insight points. Neither does it give an answer to Lewis, R. D. (2006), ‘When Cultures Collide – Leading
where these differences or similarities come from. For Across Cultures’, Nicholas Brealey International, USA
a thorough understanding of the deeper lying values
driving the people in the Nordic region, a useful tool Smith, P. B. et al., ‘In search of Nordic Management
is the 5-D Model of professor Geert Hofstede. For a Styles’, Scandinavian Journal of Management, 19
more elaborative view on the cultural challenges and (2003) 491-507
opportunities between the Nordic countries, efficient
strategies to manage the cultural differences, and an Szabo, E. (2007), ‘Participative Management and
introduction to the 5-D Model, please contact: Culture – A Qualitative and Integrative Study in Five
European Countries’, Peter Lang, Frankfurt am Main
Pernilla Roersoe, Managing Director, Senior
Consultant, Copenhagen Office, itim Group Weiss, K. (2006), ’Når Vikinger Slås - hvorfor
pernilla@itim.org skandinaviske virksomheder har det så svært med
hinanden’, Jyllands-Postens Forlag, København
Pernilla Roersoe, M. Sc. in International Business
Srategy (IBS) has been with itim International
since 2007.
Working with intercultural management from
an operational and a strategic perspective, she
assists companies in succesfully operating and
maneuvering in a globalized world.
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