Doing Business with Sweden

A brief overview of some key concepts

to consider when doing business
in Sweden

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2 Doing Business with Sweden

Business Culture in Sweden

This country profile has been produced Therefore this briefing note is broken into
to give a short overview of some of the short, bite-sized sections on the following
key concepts to bear in mind when doing topics:
business with contacts in Sweden. It is
intended to be an aid to business people • Background to business
who have commercial dealings with
• Business Structures
counterparties in the country but should
not be seen as an exhaustive guide to • Management style
this topic or as a substitute for more
substantial research should there be a • Meetings
need. • Teamwork
With this in mind, we have covered • Communication
the areas which are key to a better
understanding of the cultural mindset • Women in business
underpinning business dealings in Sweden • Entertaining
and which are, quite often, extremely
different from the approach and thought • Top tips
processes associated with business in
other parts of the world.

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 Doing Business with Sweden 3

Background to Business in Sweden

Sweden, as has often been stated,
presents a fascinating business model. It
has proved to be a remarkably successful
post-war economy, which has managed
to combine both pro-business policies
with the provision of an all-embracing
welfare state.
Indeed the social policies once produced
a famous remark from the mayor of
Shanghai, ‘I like Sweden but you are just
a bit too socialist over there.’
The third remarkable fact about Sweden
is the enormous breadth of its industries.
Sweden has significant companies in
market sectors varying from electrical
goods to vehicle manufacture, from
telecommunications to pharmaceuticals
and from mechanical engineering to
chemicals. In addition, of course, it has
companies with a global presence in all
these industrial areas.

This seeming paradox can in

large measure be explained by an
understanding of one of the central
Swedish characteristic – egalitarianism.
A belief in the genuine equality of
individuals and the resultant desire
for consensus are at the heart of
Swedish business life and explain
both organisational structures and
management approach in the country.

A second, frequently mentioned, surprise

about Swedish business is the relatively
large number of truly international
companies emanating from a country
with a population of less than nine million
– Eriksson, Electrolux, Atlas Copco, ABB,
Tetrapak; the list is almost endless. It is a
truism that countries with small domestic
markets need to internationalise to survive
and prosper but few countries have been
as successful on the world stage
as Sweden.

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4 Doing Business with Sweden

Swedish Business Structures

Flat management and egalitarianism are extremely inflexible. Indeed matrix

sit very comfortably together and this
accounts for the fact that Swedish
organisations tend to be less layered than
in all other European countries.
The flatness of Swedish management
structures is also mirrored in the levels of
remuneration offered to different levels
within a company. A combination of the
tax regime and centrally agreed salary
agreements have produced a country
in which pay differentials are almost
unbelievably low (although this is starting
to change.)
management, which works better in
Sweden than almost anywhere else, leads
to an openness of communication and
freedom of information which many more
hierarchical societies would find almost
anarchic.
One key organisational necessity worthy of
note is the absolute need for punctuality.
Don’t be late in Sweden if you want to
maintain a professional image.

Structures are designed to be pragmatic

and systematic and to allow people to
perform their tasks effectively and with
as little disruption as possible. This does
not, however, mean that structures

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Swedish Management Style
An egalitarian approach, which seeks
consensus results, produces a very specific
management approach.
The paternalism, which can be found
further south in Europe, sits uneasily with
the average Swede and direct instructions
can be seen as embarrassing for all
concerned. Therefore managers are seen
more as facilitators or coaches who offer
advice and suggestions. Bosses are not,
necessarily, expected to know all the
answers and it is assumed that the person
performing a particular task is the most
knowledgeable about that particular task.
One result of this approach is that
decisions can be hard to reach and the
process tends to be drawn out. It is
Swedish Meetings
Meetings tend to be long with a great deal
of open debate. Everybody has a view and
everybody’s view is worthy of airing and
consideration.
However, opinions are expected to be
backed up by empirical evidence, which
means that a great deal of pre-planning
and preparation are expected.
As has already been stated, punctuality is
of central importance in Sweden. Lateness
is largely indefensible as it implies a lack
of courtesy and respect for the other
members present. In discussions about
approach to business, Swedes raise the
importance of punctuality more often
and more strongly than almost any other
nationality.
Doing Business with Sweden 5
important that the manager includes
everybody in the process and that
everybody’s point of view is listened to
and ostensibly valued. Many expatriates
from countries where quick decision
making is highly valued can find this
process extremely frustrating. It is
dangerous to try to circumvent this
process, however, as unilateral decisions
are unlikely to be respected or adhered to.
As managers tend towards a consensual
approach and openness of discussion,
information tends to flow well between
departments and functions. There also
tends to be less social distance between
managers and subordinates. Management
denotes a level of work-related
responsibility rather than a
hierarchical status.
Agendas are usually produced and would,
on the whole, be adhered to. Agendas
bring the necessary structure to a wide
ranging, consensus-seeking debate.
Without an agenda, the meeting would
run the risk of disintegrating into an
aimless discussion.
During the meeting, participants will
tend to speak one at a time with little
interruption of the person who has the
floor. Those wishing to make a point will
often indicate the fact by raising their
hands to attract the attention of the
person in the chair. As a result, meetings
can have a cold, detached feeling for those
more used to emotional responses and
where many people attempt to interject
at the same time.
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6 Doing Business with Sweden
Swedish Communication Styles
Swedes communicate well in international
business situations, helped in no small
measure by the generally high levels of
English spoken in the country.
The international nature of many
Swedish businesses makes it essential
for any ambitious Swede to have a good
knowledge of the world business language.
However, as with all non-native speakers
of English, Swedes take into the second
language their own approach to
communication matters. As with many
northern European countries, directness
is prized more highly than diplomacy. The
search for consensus and agreement does
not preclude the use of direct debate – in
fact it makes it absolutely necessary. The
result of this respect for plain speaking
is that Swedes can be seen as rude or
at least overly abrupt by those cultures
which place diplomacy before direct
speaking. Cultures as diverse as the
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UK and Japan are often taken aback by
the apparent contradiction of a culture
which professes to seek consensus and
negotiated compromise whilst at the same
time following a seemingly confrontational
path.
Silence is golden in Sweden. Many cultures
find any level of silence intolerable
and will rush to fill it. Swedes are more
comfortable than most with silence. If you
don’t have anything to say, why speak? In
meetings, try to cope with these silences
by respecting them. Anybody who feels the
need to talk incessantly will not necessarily
gain respect for his or her volubility.
Although Swedes have a good sense of
humour, it is not necessarily appropriate
in all business situations. Serious business
should be treated seriously.

Swedish Teams
Basic Swedish characteristics of
community, egalitarianism and
consensus-seeking all blend to make
Swedes good team players – so long as
the team accords to their ideals.
A team, which consists of a strong leader
instructing junior team members, is
unlikely to succeed.
There is a need for continuous
consultation and for an ongoing buy-in
Women in Business in Sweden
Sweden is probably more advanced than
most other countries in terms of gender
equality in the workplace.
The number of men and women in paid
employment is about equal and the spread
through function and rank is also very
equitable. (Is this another by-product of
Swedish Dress Code
Dress tends towards smart-casual in
Swedish business life. Although it is not
that usual to see businessmen dressed in
dark suits and ties, nonetheless a uniform
of sorts is apparent.
Swedes usually wear jackets and trousers
– often with a fairly distinctive tie to set
them apart. Pastel shades are very often in
evidence.
Doing Business with Sweden 7
process. Team meetings are, therefore,
likely to be reasonably frequent and
sometimes long.
Each team member expects and is
expected to perform his or her individual
tasks with the minimum of supervision
from superiors. Such unwarranted
supervision might be seen as a criticism
or lack of trust in professional capabilities.
the much-vaunted egalitarianism of the
Swedes?)
It is estimated that women currently hold
around 25% – 35% of all management
positions in Sweden – a much higher figure
than in most other industrialised countries.
If travelling in winter be sure to be
appropriately and warmly dressed. It is
best to sport a number of layers as, whilst
cold outside, offices can be very warm
indeed.
As with the men, ladies tend towards
smart casual with trousers much in
evidence – especially in the colder months.
Always take a good pair of gloves and a hat
in the winter.
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8 Doing Business with Sweden

Successful Entertaining in Sweden

Most business entertaining takes place
over lunch or dinner. (Breakfast meetings
are fairly unusual.) In fact, there is quite
a tradition of business entertaining in
Sweden and people will enjoy being invited
out to a good restaurant.
Meals are taken relatively early in Sweden
with lunch being taken between 12:00 -
13:00 and dinner as early as 18:00 - 19:00.
would be the most common drinks taken
with dinner. Drinking is often accompanied
with the traditional Swedish toast of
skåoal.
It is usually possible to discuss business
issues over lunch or dinner - although
it would be unusual to make any firm
decisions or go into things in too much
depth on these occasions.

Swedish food is often described as being It is not really necessary to tip in

quite heavy and it is true that there are
many dishes with meat and potatoes.
There are, however, a great many lighter
dishes available - especially fish dishes -
and the menus in good restaurants are
usually excellent and varied.
restaurants in egalitarian Sweden but
many people will round up the bill to the
nearest round figure. You do, however,
very often have to pay to hang your coat
in the cloakroom.

Most business people do not drink alcohol

with lunch but are much more likely to
have an alcoholic drink with dinner (unless
they are driving - the drink-driving laws are
very stringently enforced.) Beer and wine

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Top Tips 1 - 20 on Sweden
1. Egalitarianism is one of the driving
characteristics of Swedes. This leads
Swedes to be consensus-oriented in
many situations.
2. Swedes expect to be allowed to
perform their allotted tasks free from
interference from others.
3. Business structures tend to be flat
with good, open communication
across the functions.
4. Managers are expected to include
subordinates in the decision-making
process. Buy-in is central to the
Swedish approach.
5. Swedes tend to make good team
players, realising the importance of
open communication and the need
for acceptance from other team
members.
6. Due to the consensual nature of the
Swedish approach, meetings can be
lengthy and verbose.
7. Delegates are expected to arrive well-
prepared for meetings. Agendas are
often used and usually adhered to.
8. Decision taking can also be a lengthy
process as the necessary debate and
consensus process is gone through.
9. Punctuality is essential in Sweden.
Lack of punctuality can undermine
professional credibility.
10. Swedes put business before
relationships and business
relationships are based on respect
for competence and diligence.
Doing Business with Sweden 9
11. Women play a very active role in all
aspects of business life and will often
be found at the highest echelons of
Swedish business
12. A strong separation is made between
work and private life and private time
is guarded zealously – especially in
the all too few months of summer
when life is for living.
13. There are high levels of English
language competence in Sweden.
Do not, however, confuse a high level
with absolute fluency. There are still
possibilities for misunderstanding
and confusion.
14. Putting directness before diplomacy,
Swedes can be seen as rude or
aggressive by those cultures who
value diplomacy highly.
15. Silence is valued and respected in
Sweden. It is not always necessary to
speak – especially if there is nothing
much to be said. Do not confuse
silence with a lack of interest or
understanding.
16. Swedish body language is fairly
muted in comparison with many
other cultures. Swedish audiences
can appear disinterested or aloof to
those used to a more active use of
body language.
17. Humour is not expected or
particularly appreciated during the
discussion of serious topics. There
will be ample opportunity for humour
after the serious business has been
completed.
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10 Doing Business with Sweden

18. Swedes have a high sense of the

importance of environmental issues
and these topics are very often
discussed.

19. For its population, Sweden has been

remarkably successful in developing
an international presence and Swedes
feel that Sweden is a fairly important
player on the world stage.

20. More emphasis is placed on the

written than the spoken word. It is
often not enough to phone someone
– follow it up in writing.

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 Doing Business with Sweden 11

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