The Nordic approach to business builds empowerment, team spirit and engagement. But can you copy it?

It turns out that a lot of people are happy to work there, too. Ten spaces are occupied by companies headquartered in the Nordic countries luck100 Best Companies to Work For – Europe ListEven though their countries make up less than 4% of the continent’s population.

Denmark and Norway each have three of the top 100 countries –Novo NordiskBerholm and Jeske for models; Alarm Sector, Norway House and Reitan Retail for Laughs – while in Sweden there are four: Svea, Three, Bengt Dahlgren and Sparbanken.

Is there something in the region’s icy waters that companies in other parts of the world can learn from?

Erko Autio, professor and head of the Department of Technology Enterprise and Entrepreneurship at Imperial College Business School, points to four distinguishing features. “Companies in the Nordic countries are much less hierarchical. That’s one thing. The second is that these high-trust cultures give employees a high level of autonomy. Work-life balance is the third factor. Finally, there is an emphasis on collaboration and consensus rather than dictation.”

Anna Nevala, CEO of the Gothenburg branch of Swedish civil engineering consultancy Bengt Dahlgren, says the Swedes joke: “[We are]the only country where co-workers make decisions and then the CEO has to adjust them. Democracy in that sense is very important, but it’s a solid foundation for psychological safety when you can tell anyone what’s on your mind.”

The Nordic model in practice

The four pillars of happy Nordic businesses that Autio highlights – independence, low power distance, work-life balance, and collaboration – come as a package.

“Companies in the Nordic countries are much less hierarchical.”Erko Autio is Professor and Head of the Department of Technology Enterprise and Entrepreneurship at Imperial College Business School

A commitment to work-life balance, for example, is crucial to empowerment, Nevala says. “When Bengt Dahlgren founded the company 74 years ago, he had a motto that a hungry engineer is not a good engineer, and he would serve his employees blueberry muffins and invite them to his house,” she says.

Today, there is “There are a lot of little things that always happen to make you feel like your personal life matters too,” including the mundane coffee– Coffee and cake breaks where teams get to know each other without talking about work – Company subsidized ski trips, lectures on mindfulness or preventing calendar creep.

This level of personal concern and openness – making mistakes is part of being a whole person – is baked into the business culture. “Sharing with each other that you’re going through a divorce or that you’re having difficulties with this or that makes you trust each other more,” Nevala explains.

It’s a familiar story in the Nordic countries. Likewise, Danish pharmaceutical company Novo Nordisk, which is also in the top 100 Known for its culture Employees call the CEO by their first name, and they don’t feel pressured to stay at work late.

Not for everyone

These principles – no matter how virtuous – come with risks. Auto stands for Nokiaa giant mobile phone manufacturer in Finland, as an example of the pros and cons of the Scandinavian approach.

Nokia started out in forestry and heavy industry before moving into electronics in the 1960s and 1970s, later rising to dominate the global mobile phone market in the 1990s and early 2000s. At that time, it was Credit This situation leads to a flat hierarchy, pushing the decision-making process closer to the customer.

“Sharing with each other that you are going through a divorce or having difficulties with this or that makes you trust each other more.”

Anna Nevala, CEO of Bengt Dahlgren’s branch in Gothenburg

But when the iPhone entered the smartphone era, the company was unable to make the transition again and eventually exited the market; It now specializes in communications equipment.

The much-analyzed failure was partly due to strategic errors, but Autio also places the blame on the company’s system of middle management committees: “The committees were empowered to decide which approaches to proceed. They ended up in a situation where middle managers continued to vote against each other’s initiatives, which reduced Nokia’s ability to respond to industry change.”

This is not to say that a culture of consensus prevents innovation or flexibility – Autio offers Sweden’s vibrant startup sector as evidence to the contrary. Nevala also says that once consensus is secured, things tend to move faster because everyone is on the same page.

Striking the right balance requires skillful execution. Perhaps the most important – and most relevant – lesson Scandinavian companies have learned this year Best companies to work for – Europe list It is that leaders cannot impose a collaborative culture from the top down.

“A lot of times, you can think this is a leader’s responsibility, but you have to talk to every coworker about creating this type of environment,” Nevala says. “It’s not just about what your boss will do, but how will you contribute? What do you need to contribute?”

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