LEADERSHIP IN
THE NORDIC COUNTRIES
This fact sheet presents key leadership differences in the Nordic countries. The differences are reviewed with
regards to:
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Management Styles are Culture Dependent
Organisation
Leadership
Decision-Making
Conclusion
References
MANAGEMENT STYLES ARE CULTURE DEPENDENT
From a global perspective the Nordic countries are very similar; and they actually share many of the same
fundamental values. Although similar management styles appear across the region, each of the countries
should be interpreted in the exact same way. Fine nuances, subtle as they may be, are often disregarded and
therefore end up creating culture clashes and problems. Both domestic firms and firms investing in the
region can benefit from knowing the cultural sensitivities that distinguish the Nordic countries.
This document will help you to acquire an insight into key management issues across the Nordic countries.
The four countries are approached separately and crucial elements highlighted.
The cultural differences between the four countries can take on different meanings, depending on your own
culture. Your own culture defines how you look at others. A Swede has a different view of the Danes than a
German. In this document the Nordic cultures are approached from a non-Nordic perspective.
ORGANISATION
In the Nordic countries, corporate structures tend to be decentralized with top-light management
hierarchies, although Finnish organisations are somewhat less egalitarian than the other Nordic
organisations. The Nordic managers have been instrumental in the development of the concept of bottomup management. Managers go to great lengths to delegate responsibility and to share power, i.e. decisionmaking with all layers of the hierarchy, and subordinates on their side expect to be heard and to be involved
in decisions, concerning their work.
LEADERSHIP
The predominant leadership style in the Nordic countries is participative management. Nordic managers’
most important quality is to obtain results in co-operation with the employees; people orientation. Nordic
managers rely more on their subordinates and peers and less on formal rules and superiors compared with
managers in other countries However, important contrasts are found between the Nordic countries, and the
level of participation differs in the four Nordic countries.
The Danish management style is ‘bottom-up and informal’. Danish managers rely extremely on their own
experiences and subordinates, whereas they are less dependent on their superiors and on formal rules.
Danish managers much expect their subordinates to ask questions than is the case in the other Nordic
countries and this also applies to subordinates.
The Finnish management style is characterized by ‘expertise in a culture of equality’. Finnish managers rely
more on their own epertise and experiences and to a somewhat lesser extent on their subordinates.
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Participative management in Finland is influenced by structural constraints and a concern for quality.
Compared with their Nordic counterparts Finnish managers rely more on rules However, rules which are
imposed by others are used less as source of guidance.
The Norwegian management style is ‘bottom-up, collegial’. Norwegian managers rely highly on their own
experiences and their subordinates and co-workers (team-work). Norwegian managers are concerned about
doing what is considered decent and correct by society. In Norway, there is also a moderately high reliance
on rules.
Participative management in Sweden is strongly influenced by equality and fairness. The Swedish
management style is characterized by ‘conformity in a culture of eqality’. Swedes place strong reliance on
everybody following the same consensus-driven informal rules and procedures, and are moderately reliant on
their own experiences. Swedish managers are also concerned about doing what is considered decent and
correct by society.
Denmark
Leadership Style
 Participative management
 Bottom-up and informal
Leader
 Visionary, inspirational and of high integrity
 Coordinator, competent colleague, yet decisive and straightforward
 Coaching rather than direction
 Status is based on qualifications, competence, and achievements
Leader’s Source of Guidance
 Participation
 Rely on own experiences and subordinates to a very high degree
 Very low reliance on superiors and formal rules
 Low reliance on ‘beliefs that are widespread in my nation as to what is right’
Sweden
Leadership Style
 Participative management
 Conformity in a culture of equality
Leader
 Visionary, inspirational and of high integrity
 Coordinator, competent colleague
 Coaching rather than direction
 Status is based on qualifications, competence, and achievements
Leader’s Source of Guidance
 High reliance on consensus-driven informal rules and procedures
 Relatively high reliance on own experiences
 Moderately high reliance on subordinates and ‘beliefs that are widespread in my nation as to what is
right’
 Relatively low reliance on superiors
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Norway
Leadership Style
 Participative management
 Bottom-up and collegial
Leader
 Visionary, inspirational and of high integrity
 Coordinator, competent colleague, yet very much the center of things
 Coaching rather than direction
 Status is based on qualifications, competence, and achievements (leadership really needs to be earned)
Leader’s Source of Guidance
 Team-work
 Rely on own experiences and subordinates and co-workers to a very high degree
 Moderately high reliance on ‘beliefs that are widespread in my nation as to what is right’
 Moderately high reliance on rules
 Relatively low reliance on superiors
Finland
Leadership Style
 Participative management
 Expertise in a culture of equality
Leader
 Visionary, inspirational and of high integrity
 Leader has expertise-based authority
 Hands-off management, silent coaching and modest direction
 Status is based on qualifications, competence, expertise, technical skills, and achievements
Leader’s Source of Guidance
 Very high reliance on own experience, training, and expertise
 Relatively high reliance on informal and formal rules (but not imposed by others)
 Relatively low reliance on subordinates and superiors
 Relatively low reliance on ‘beliefs that are widespread in my nation as to what is right’
DECISION-MAKING
The Nordic decision-making style is consensual, participative and inclusive. There is a high degree of
interdependence and trust, and communication is open and flows in all directions. Decision-making is done
by looking for shared interest of all stakeholders and to create consensus to obtain the broadest possible
consent in connection with important decisions. Basically, the same form for pragmatic, decision-oriented
rationality with a high degree of objectivity applies to all Nordic countries.
The communicative Danes are more individualistic and tend to approach things in a relatively independent
and flexible way, for example changing their minds along the way during the decision-making process. The
Danish managers are result and goal-oriented, they can act swiftly and are able to adapt quickly. The role of
the Danish leader is to cut things short when the employees have had a chance to argue for their opinion.
Subordinates need to be heard, but one does not need to have reached consensus in the same way as the
Swedes would need to reach consensus.
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The silent Finns are rather dynamic achievers and decision-makers, who approach decision-making
pragmatically and with a purpose. When faced with a decision, Finnish managers reserve time to think about
the issue, gather supporting and expertise information and discuss the issue within the organisation. Finns
prefer to rely on their ‘gut’ feeling rather than on more time-consuming political processes. The involvement
of subordinates mainly takes the form of consultative discussions and there is less striving
for consensus than in the other Nordic countries. Finnish leaders are slighty more decisive than their Nordic
counterparts. Finns will sometimes be slow in making up their minds because they want to have a full
overview. Once their minds are made up, however, they are unlikely to make changes.
In Norway, there is a stronger focus on group-decisions, and there is a tradition for sitting down with the
subordinates, agree upon what is to be done, and then implement it. However, even if there is a high degree
of involvement of co-workers in leadership, it is generally acceptable for the leader to make decisions. The
Norwegians are analytical, focus on details and have a relatively strong need for control of resources.
Nevertheless, they are also result-oriented and good at simplifying things. When it seems that a decision has
been made, however, they may actually very well carry on their discussion. Once the final decision has been
made they prefer to act quickly.
Swedish managerial decisions are strongly influenced by involvement. In Sweden, consensus is extremely
important and Swedish managers have a more patient and understanding attitude towards their subordinates
and will spend a lot of time reaching agreement and building group consensus. Communicating intensively
with as many different parties as possible is considered an efficient way to reach good decisions. The Swedes
are very thorough in their planning and often evaluate everything before making up their minds. The
decision itself emerges from the consultation process.
Denmark
Decision-Making
 Goal and result-oriented
 Action-oriented, fast and very flexible, spontaneous, risk-taking
 Time is a measure of quantity
 More individualistic
Communication
 Convivial, open and informal dialogue, direct, honest, straightforward, clear and distinct, strong
opinions, many questions, relatively loud, somewhat confrontational
Motivation
 Corporate image, independence, involvement, autonomy and empowerment, responsibility, selfdevelopment, professional development and interesting tasks, professional challenges, good personnel
management, good work environment, good balance between work and leisure time, good salary
Sweden
Decision-Making
 Process-oriented
 Thorough and long-term planning
 Focused on group-decisions (all stakeholders)
 Consensus extremely important
 Time is a measure of quality
Communication
 Open dialogue, many indirect statements, honest, polite, reflect before they speak, respectful, nonconfrontational
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Motivation
 Corporate image, independence, involvement, autonomy and empowernment, self-development,
professional development, interesting tasks and professional challenges, good personnel management,
good work environment, interpersonal solidarity, good balance between work and leisure time, good
salary
Norway
Decision-Making
 Result and process-oriented
 Bound by rules and procedures, careful and moderately flexible
 Analytical, focused on details, controlling resources
 Focused on group-decisions, but individual decisions are accepted
 Process takes longer time, but once decision has been made, quick actions
 Time should be managed efficiently
Communication
 Open dialogue, reserved, yet informal and warm-hearted, direct, honest, straightforward, clear and
distinct, strong-willed, proud, non-confrontational, but will take conflicts if they occur
Motivation
 Corporate image, independence, involvement, autonomy, empowerment , self-development,
professional development, interesting tasks and professional challenges, security, good personnel
management, good work environment, good balance between work and leisure time, good salary
Finland
Decision-Making
 Quality, expertise, efficiency and results-oriented
 Dynamic, relatively flexible achievers and decision-makers
 Time should be managed efficiently
 More individualistic
Communication
 Reserved, relatively sparse and explicit in verbal expression, yet straightforward, honest, emphasis on
preciseness and simplicity, listen and think things through before sharing opinions, respectful, nonconfrontational, but will take conflicts if they occur
Motivation
 Corporate image, autonomy, delegation with clear authority and responsibility, low frequency of
interaction with superiors, self-development, professional development, interesting task and professional
challenges, good work environment, good balance between work and leisure time, good salary
CONCLUSION
As can be seen from the above, Nordic leadership is an interactive and dynamic process; involving and
including to a very high degree subordinates and co-workers. At the same time, however, cultural differences
contribute to subtle, yet significant differences in behavior. To navigate successfully in the Nordic countries
requires an understanding of the idiosyncratic cultural differences found between Denmark, Finland,
Norway and Sweden.
This document is not a complete overview of the many cultural differences and similarities between the
Nordic countries, if anything it should be considered as key insight points. Neither does it give an answer to
where these differences or similarities stem from. For a thorough understanding of the deeper lying values,
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driving the people in the Nordic region, the 4-D Model by professor Geert Hofstede is a useful tool . For a
more elaborative view on the cultural challenges and opportunities between the Nordic countries, efficient
strategies to manage the cultural differences, and an introduction to the 4-D Model, please contact:
REFERENCES
Hofstede, G. (2001), ‘Cultures Consequences – Comparing Values, Behaviors, Institutions and Organisations Across
Nations’, Sage, United Kingdom
Holt Larsen, H. and Bruun de Neergard, U. (2007), ‘Nordic Lights - A research project on Nordic leadership and
leadership in the Nordic countries’, København
Lewis, R. D. (2006), ‘When Cultures Collide – Leading Across Cultures’, Nicholas Brealey International, USA
Smith, P. B. et al., ‘In search of Nordic Management Styles’, Scandinavian Journal of Management, 19 (2003) 491507
Szabo, E. (2007), ‘Participative Management and Culture – A Qualitative and Integrative Study in Five European
Countries’, Peter Lang, Frankfurt am Main
Weiss, K. (2006), ’Når Vikinger Slås - hvorfor skandinaviske virksomheder har det så svært med hinanden’, JyllandsPostens Forlag, København
The fact sheet has been prepared in collaboration with:
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