Nordic international locations are recognized for being comfortable, with excessive incomes, strong welfare assist and quick access to nature. Finland, Denmark, Iceland and Sweden are actually the world’s 4 happiest international locations in accordance with the most recent UN-sponsored World Happiness Report, with Norway coming in seventh.
It seems, many individuals are comfortable at work there too. Nordic-headquartered companies occupy ten areas on Fortune’s 100 Greatest Corporations to Work For – Europe listing, regardless of their international locations constituting underneath 4% of the continent’s inhabitants.
Denmark and Norway every have three of the highest 100—Novo Nordisk, Beierholm and JYSK for the previous; Sector Alarm, Norgehus and Reitan Retail for the latter—whereas Sweden has 4: Svea, Tre, Bengt Dahlgren and Sparbanken.
Is there one thing within the area’s glacial waters that companies in different elements of the world can study from?
Erkko Autio, professor and chair in expertise venturing and entrepreneurship at Imperial School Enterprise Faculty, factors to 4 distinguishing options. “Nordic companies are a lot much less hierarchical. That’s one factor. The second is that these are high-trust cultures that give staff a excessive degree of autonomy. Work life steadiness is the third issue. Lastly, there’s an emphasis on collaboration and consensus moderately than dictation,” he explains.
Anna Nivala, CEO of the Gothenburg department of Swedish civil engineering consultancy Bengt Dahlgren, says that Swedes joke that “[we’re] the one nation the place the coworkers make choices after which the CEO has to regulate. Democracy in that sense is essential, nevertheless it makes for a strong floor for psychological security when you possibly can say to anybody what’s in your thoughts.”
The Nordic mannequin in follow
The 4 pillars of comfortable, Nordic firms that Autio highlights—autonomy, low energy distance, work-life steadiness and collaboration—come as a bundle.
“Nordic companies are a lot much less hierarchical.”Erkko Autio, professor and chair in expertise venturing and entrepreneurship at Imperial School Enterprise Faculty
A dedication to work-life steadiness, for instance, is important for empowerment, says Nivala. “When Bengt Dahlgren based the corporate 74 years in the past, he had a slogan {that a} hungry engineer was not engineer, and he used to deal with his staff to blueberry pies and invite them to his home,” she says.
As we speak, there are “a number of small issues all the time that occur to make you are feeling that your private life additionally issues,” together with common fika—espresso and cake breaks the place groups get to know one another with out speaking about work—sponsored firm ski journeys, and lectures about mindfulness or stopping calendar creep.
This degree of caring and private openness—proudly owning errors is a part of being current as a complete individual—filters into the enterprise tradition. “Sharing with one another that you simply’re going by way of a divorce or having difficulties with this or that makes you belief one another extra,” Nivala explains.
It’s a well-recognized story within the Nordics. Danish pharma agency Novo Nordisk, which additionally makes the highest 100, is equally recognized for a tradition the place staff name the CEO by their first title, and don’t really feel strain to remain at work late.
Not for everybody
These rules—nevertheless virtuous—do include dangers. Autio factors to Nokia, Finland’s one-time big cellular maker, for instance of the professionals and cons of the Nordic method.
Nokia began out in forestry and heavy industries earlier than pivoting to electronics within the Nineteen Sixties and Nineteen Seventies, later rising to dominate the worldwide cell phone market within the Nineteen Nineties and early 2000s. On the time, it credited this place to its flat hierarchy, pushing decision-making nearer to prospects.
“Sharing with one another that you simply’re going by way of a divorce or having difficulties with this or that makes you belief one another extra.”
Anna Nivala, CEO of the Gothenburg department of Bengt Dahlgren
However when the iPhone ushered within the smartphone period, the corporate couldn’t make the transition a second time and finally exited the market; it now focuses on telecommunications tools.
The much-dissected failure partly got here from strategic errors, however Autio additionally blames the corporate’s system of center administration committees: “The committees have been empowered to resolve which approaches to maneuver forward with. They ended up in a scenario the place the center managers stored voting down one another’s initiatives, and that decreased Nokia’s functionality to answer business change.”
That isn’t to say that consensus tradition prevents innovation or agility—Autio gives Sweden’s vibrant start-up sector as proof on the contrary. Nivala additionally says that after consensus is secured, issues have a tendency to maneuver sooner as a result of everyone seems to be aligned.
Getting the steadiness proper does take skilful execution. Maybe an important—and apt—lesson from the Nordic firms on this 12 months’s Greatest Corporations to Work For – Europe listing is that leaders can’t impose a collaborative tradition from the highest down.
“Typically you possibly can suppose it’s the chief’s duty, however you have to speak to each coworker about creating this type of surroundings,” says Nivala. “It’s not simply what’s the boss going to do, it’s how are you going to contribute? And what do you have to contribute?”
