Business Culture

Often, Swedish businessmen don't expect businessmen from other countries to differ much from themselves in management, behaviour, clothing etc. Most of them would be surprised if they were told that their business culture differs greatly from the international norm.

Management Style

Swedish management is based on the idea that the individual is both willing and able to do a good job. A Swedish manager tends to think of himself as a coach rather than a commander, and he often delegates tasks and authority to his staff. Swedish organizations, employees on all levels have the freedom to make decisions and solve unexpected problems without asking superiors for permission.

A good manager, according to Swedish standards, is a person who takes advantage of the natural creativity and motivation of his staff. He should lead the employees not through his power or formal position, but through the principles of cooperation and agreement. Being a good listener is considered to be another important quality. In discussions with his staff, a professional manager should use reason and base his views on facts. Getting emotional when discussing a problem is considered rather inappropriate.

Power Distance

The power distance in Swedish companies is among the smallest in the world, according to a study of 40 countries in 1984. 'Power distance' can be defined as "the extent to which people in a hierarchical situation feel they can and should control the behavior of others, and the extent to which those others are conditioned by reflexes of obedience". In Swedish companies, the concept of power distance is largely replaced by personal responsibility.

Personal status is of relatively small importance in Swedish business life. Managers only rarely give signals of their own status and employees normally don't feel inferior to them. An executive is most of all considered to be a specialist in managing companies and he is therefore not socially superior to a specialist in any other field. In this respect, Sweden seems to differ from many other countries. A further sign of the non-hierarchic (or, better, modestly hierarchic) Swedish company structure is that Swedes normally use their first names at work.

Organizations

Swedish organizations are probably less rigid than many of their foreign counterparts. Swedes try to solve problems in an informal and pragmatic way, even if it means bypassing one or more layers of executives. In most cases, managers do not feel threatened by this practise, the general idea being that decisions are made in order to achieve a result and not to demonstrate your own position. The same attitude explains the vivid exchange of information in Swedish companies. If people know what is going on, the argument goes, they will feel more involved, and therefore more motivated for work.

Swedish companies usually have a flat and team-oriented structure with few management levels. The result is a simple and direct decision-making process. Matrix organizations are common, since Swedish employees often report to more than one manager.

The Approach to Risks

Swedish executives are generally more willing to take risks than their colleagues in other countries. An international study showed that Sweden had the lowest "uncertainty avoidance index" by far among the countries compared, while Japan had the highest. To generalize this result, one could perhaps say that Swedish managers are not so anxious to do the 'right' thing as long as they do their best.

In countries where managers show a high uncertainty avoidance, employees are often promoted according to seniority. In Sweden, on the other hand, actual work performance tends to be of greater importance. As a result, young men and women are frequently seen in leading positions.

Making Decisions

Although Swedish executives are willing to take risks, decisions are often made after great deliberation. This is so, because there is one thing that must not be risked: the feeling of consensus and agreement in a company. Heated debates are very unusual at business meetings, and criticism has to be presented in a non-personal and diplomatic way. Unlike the situation in most other countries, Swedish business culture strongly favors compromising.

Punctuality

Being punctual is not only regarded as a sign of respect but also of efficiency and Swedish businessmen will have little understanding for cultural variation in this case. The stressing of the time factor can also be seen in everyday business contacts; it is generally not considered rude to set a deadline for a thing to be done or a decision made.

Punctuality is important not only in working life but also when it comes to purely social gatherings. This means that when a Swede is invited for dinner at 7 pm, he will show up between 7:00 and 7:05 pm. If he shows up 7:05 to 7:15 it will be with an excuse on his lips. (Taxi drivers taking the wrong turn and problems in the subway are standard excuses.) If the arrival is later than 15 minutes after the invitation, the excuse should also include the reason why no call was made to advise the host/hostess of the delayed arrival.

Business Contacts

Foreign businessmen often find that their Swedish colleagues talk too much business , and too little about themselves or their interests. They might draw the conclusion that their partners are simply limited and ignorant. The Swedish businessman, on the other hand, probably wishes his foreign business partner would cut the small talk and come to the point. In Sweden, a direct approach is seen as a sign of efficiency and a desire not to waste the other person's time.

Books on Swedish business culture and management

There are several books on the topic of cross-cultural perspective. Here are some suggestions on Swedish business culture and management; Modern-Day Vikings - A Practical Guide to interacting with the Swedes by Christina Johansson Robinowitz and Lisa Werner Carr, Swedish Mentality by Ake Daun. More suggestions are listed here on Google Print.