Doing Business with Norway

A brief overview of some key concepts

to consider when doing business
in Norway

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2 Doing Business with Norway

Business Culture in Norway

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 Norway. 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 Norway • 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 Norway 3

Background to Business in Norway

Norway is a country with a low population

but an very high standard of living – the
population of less than 5 million share
an average GDP of $79,00 per person –
making Norway the third highest in the
world (after Luxembourg and Bermuda).

Norway also tops the Economist Human

Development Index.

Norway’s prosperity is due, in no small

part, to its large oil deposits (discovered in
the 1960’s) which have helped the country
develop a very large Sovereign Wealth
Fund and maintain a high quality social
system and infrastructure.

Although traditional industries such as

timber and fisheries are still important,
Norway has developed thriving industrial
and service sectors which are able to
draw on the services of a highly educated
workforce and now has major companies
operating in many niche hi-tech fields.

Staunchly independent, Norway has

stayed out of, not only the Euro but also
the European Union and there seems little
appetite in the country to move towards
a greater degree of unity with their
European neighbours – they seem to be
doing very well on their own.

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4 Doing Business with Norway
Norwegian Business Structures
In common with the other Scandinavian
business cultures, Norway is extremely
non-hierarchical in its approach to
business structure.
In accordance with Norway’s famous
interpersonal code of Jante Law (first
put into words by the famous poet
Aksel Sandemose), people in Norway
are expected to be egalitarian in their
approach to all aspects of life – you shall
not think you are special is one of the
main tenets of Jante Law. This egalitarian
approach obviously lends itself to being
comfortable in a more matrix-style
organisation.
Thus the emphasis in a Norwegian
operation is placed not on the hierarchy
of people’s relationships but more on
pragmatism and the development of
efficient systems which allow people to
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perform their tasks effectively and with
as little interference as possible. Hand
in hand with this egalitarian approach
goes an openness of communication and
freedom of information which many more
hierarchical societies would find difficult to
accept.
When working with Norwegians, it is
best to spend your time trying to find the
person who is responsible for a specific
task rather than working out what the
hierarchy is and working from the top
down to the fact holder. It might even
be viewed negatively if the fact holder is
initially ignored and a senior member of
the organisation is approached first.
 Doing Business with Norway 5

Norwegian Management Style

Cultures which promote a more
egalitarian approach and strive for flat
structures, tend to develop very specific
characteristics with regard to management
approach.
One very positive aspect of this egalitarian
approach is that information flow within
Norwegian organisations is usually very
open and all employees therefore feel
engaged and valued.

In Norway, bosses are expected to act

more as coaches and facilitators than as
paternalistic, authoritarian figures. Jante
Law also states that ‘you shall not believe
you are smarter than others and you
shall not behave as if you are better than
others’. Thus bosses are expected to act
as the first amongst equals and their job is
to encourage the best out of all colleagues
and ensure an effective allocation of
company resources.

Decisions tend to be consensual and one

result of this approach is that decisions can
be hard to reach and the process can be
lengthy. Managers often feel the need to
include everybody in the decision-making
process and it is seen as important that
everybody’s point of view is listened to and
valued. For people from a culture where
management style is much more directive,
this slow, consensual approach can be very
frustrating. However, even if this approach
is frustrating for you, it is dangerous to
ignore it – any attempt at direct imposition
of orders without sufficient discussion
might be resisted strongly.

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6 Doing Business with Norway

Norwegian Meetings

As is to be expected in a consensus- Meeting participants are expected to speak

oriented culture, meetings can be lengthy
and involve lots of open debate.
As everybody has an opinion and, as
each person’s opinion is worthy of
consideration, meetings can sometimes
appear lacking in drive and urgency. In
addition to this, all opinions are expected
to be backed-up with lots of empirical
evidence and this level of detail can add
even more to the length of a meeting.
one at a time and interruptions are viewed
as rude and unhelpful. If you wish to make
a comment, raise your hand slightly and
wait until the current speaker has finished.
The chair will indicate when it is your turn
to join in. It is not a good idea to arrive
unannounced and expect to be able to get
a meeting on the spot. Book in meetings
well in advance – how else can people
come fully prepared?

Be aware that punctuality is of central

importance in Norway. Lateness is
generally not acceptable and it implies a
lack of courtesy and respect for the other
members present. If you are going to be
late for an appointment with a Norwegian,
make sure you inform them. It is difficult
to over-emphasise the importance of this
matter throughout Scandinavia. Agendas
are usually produced and when produced
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. On the whole, Norwegians
will come well prepared for meetings and
expect others to do the same. It will be
difficult to get people to buy-in to an idea
unless you come to the meeting armed
with all the relevant facts and figures.

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Norwegian Communication Styles
Not many people outside Norway speak
Norwegian and, as a result, Norwegians
have become extremely proficient foreign
language speakers.
It is not at all uncommon for your
Norwegian counterpart to speak three
or four foreign languages and English
language levels are almost universally
good.
Plain speaking is prized and the more
diplomatic approach to communication
which can be found in many of the
Asian countries, (as well as the UK),
can be viewed as evasiveness or even
as dishonesty. If you want to convince
a Norwegian, tell him the facts in a
straightforward and direct manner.
Norwegians will tell you they disagree
when they do – and they expect the same
courtesy from you.
Doing Business with Norway 7
Try not to oversell a product or an idea.
Be objective in your discussions and do
not be afraid to point out any weakness
in your argument – this level of honesty
will bring you respect and is much more
likely to reap rewards than a more self-
promotional approach.
Silence is golden throughout most of
Scandinavia. More is less, so if you don’t
have anything to say, dont speak! Do
not feel the need to fill any silence with
conversation. Silence is often used as
thinking time and the prelude to what will
be said next.
Body language is quite minimal but do not
take the lack of any overt signs of interest
as disinterest. Reserve is a highly prized
characteristic and it would be foolish
to interpret lack of emotion as a sign of
boredom or as lack of attention.
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8 Doing Business with Norway
Norwegian Teams
The key Norwegian characteristics of
egalitarianism, consensus-seeking and
lack of ego tend to make Norwegians
extremely good team players – but the
team must correspond to their idea of
what constitutes a good, well-functioning
team.
Therefore, the more southern European
team (characterised by a group of
individuals working in isolation and
reporting to a strong, instructive-style
leader) is unlikely to succeed. There
is a need for the team leader to offer
Women in Business in Norway
Norway probably boasts one of the most
gender-equal economies in the world
and is often mentioned as a model and
inspiration for other countries.
Norway was the first country in the world
to appoint a Gender Equality Ombudsman
back in the 1980s and a great deal of
legislation has been passed to ensure
equal representation and pay for women
in both state-run and private business.
Norwegian Dress Code
Dress tends towards smart-casual in
Norway. People are expected to be neat,
tidy and well-groomed.
However, much less emphasis is placed
upon what people wear than on how
professional and efficient they are. Do not
dress in an overtly ostentatious way or
wear too much flashy, expensive jewellery
as this would be contrary to just about
every Jante Law. As with the men, ladies
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continuous consultation and develop an
ongoing buy-in process.
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.
In summary, if handled well, a Norwegian
will be an enormous asset to any team but
if he or she is left to feel uninvolved or in
any way patronised, they are unlikely to do
more than the bare minimum.
Although Norwegians would probably
argue that even more work needs to be
done to ensure further progress towards
complete gender equality, not many
countries are anywhere near as advanced
as they are.
Therefore, foreign business women should
face no gender bias whatsoever and can
be assured that they will be judged solely
on their professional competence.
tend towards smart casual with trousers
much in evidence – especially in the colder
months.
If travelling in winter be sure to be
appropriately and warmly dressed. It is
best to wear a number of layers as, whilst
cold outside, offices can be very warm
indeed. Always take a good pair of gloves
and a hat in the winter.
 Doing Business with Norway 9

Successful Entertaining in Norway

A tradition of business dining has slowly Ten percent should be sufficient and the
developed in Norway over the past ten money can either be left on the table or
to fifteen years, although it is nowhere added to a credit card payment.
near as central to the whole business
relationship process as in many Asian and
southern European countries.

The person who invites will usually pay the

bill and meals can seem strangely formal
affairs in a country which is renowned for
an informal and egalitarian approach.

Both knife and fork are used throughout

the meal and visitors may be surprised
to see that even open sandwiches will be
eaten using these utensils.

Toasting is common at dinner events and

it is important to reciprocate when any
toasts are made. Look the person in the
eye, make the toast and drink. Although
tipping is not compulsory, it is the usual
custom.

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10 Doing Business with Norway
Top Tips 1 - 20 on Norway
1. Norway is one of the least hierarchical
business cultures in the world and
this ‘flatter’ approach to company
structure is driven from a deeply held
belief in egalitarianism.
2. This egalitarian approach leads to
an openness of communication flow
within an organisation which may
seem anarchic to people from a more
command and control, hierarchical
culture.
3. It is important to try to get colleagues
to ‘buy-in’ to any new project or idea
at an early stage – any attempts
to impose an idea without prior
consultation may be resisted strongly.
4. Norwegians will work very effectively
within a team environment, so long
as the team ethos is seen to be highly
inclusive and that the manner does
not attempt to be dictatorial.
5. Meetings can be lengthy affairs as
people are expected to contribute
to the consensual decision-making
process.
6. Pre-meeting preparation is expected
and respected. Arriving unprepared
for a meeting will appear highly
unprofessional and may lead people
to question your ability and authority
7. As in all consensus-oriented cultures,
decision-making can be a slow
process. Be patient, as any attempt
to speed this process up through
avoiding the important discussion
stage will probably backfire.
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8. Do not be late. Punctuality is essential
and any possible late arrival should
be communicated in advance.
9. Norwegians put business before
relationships and business
relationships are based on respect
for competence and diligence.
10. Norway is one of the most gender-
equal economies in the world and
foreign business women will have
no difficulty when interacting with
Norwegian contacts.
11. 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.
12. Although English language levels
are generally very high in Norway, it
must be remembered that it is still a
foreign language. Make sure that you
speak English in a way that is easily
understood by a non-native speaker.
13. Norwegians value direct
communication and can see overt
diplomacy as signs of evasiveness or
even dishonesty. Say what you mean.
14. Silence is valued and respected in
Norway. 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.
 Doing Business with Norway 11

15. As body language is quite muted

in Norway, audiences can appear
disinterested or aloof to those
used to a more active use of body
language. Do not confuse lack of
visible response with lack of interest
or understanding.

16. 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.

17. Norwegians are very conscious of

environmental issues and these
topics are very often discussed. Be
sure to be prepared to talk about you
company’s environmental policy.

18. More emphasis is placed on the

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

19. Although business dining is not a

central part of the business cycle in
Norway, it is important to entertain
well when inviting contacts out for a
social event.

20. Never underestimate the possibility

of bad weather in the winter – make
sure you pack the right type of
clothing and footwear.

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12 Doing Business with Norway

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