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

Norwegian Management Style

Cultures which promote a more One very positive aspect of this egalitarian
egalitarian approach and strive for flat approach is that information flow within
structures, tend to develop very specific Norwegian organisations is usually very
characteristics with regard to management open and all employees therefore feel
approach. 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 one at a time and interruptions are viewed
and involve lots of open debate. as rude and unhelpful. If you wish to make
a comment, raise your hand slightly and
As everybody has an opinion and, as wait until the current speaker has finished.
each person’s opinion is worthy of The chair will indicate when it is your turn
consideration, meetings can sometimes to join in. It is not a good idea to arrive
appear lacking in drive and urgency. In unannounced and expect to be able to get
addition to this, all opinions are expected a meeting on the spot. Book in meetings
to be backed-up with lots of empirical well in advance – how else can people
evidence and this level of detail can add come fully prepared?
even more to the length of a meeting.

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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 Doing Business with Norway 7

Norwegian Communication Styles

Not many people outside Norway speak Try not to oversell a product or an idea.
Norwegian and, as a result, Norwegians Be objective in your discussions and do
have become extremely proficient foreign not be afraid to point out any weakness
language speakers. in your argument – this level of honesty
will bring you respect and is much more
It is not at all uncommon for your likely to reap rewards than a more self-
Norwegian counterpart to speak three promotional approach.
or four foreign languages and English
language levels are almost universally Silence is golden throughout most of
good. Scandinavia. More is less, so if you don’t
have anything to say, dont speak! Do
Plain speaking is prized and the more not feel the need to fill any silence with
diplomatic approach to communication conversation. Silence is often used as
which can be found in many of the thinking time and the prelude to what will
Asian countries, (as well as the UK), be said next.
can be viewed as evasiveness or even
as dishonesty. If you want to convince Body language is quite minimal but do not
a Norwegian, tell him the facts in a take the lack of any overt signs of interest
straightforward and direct manner. as disinterest. Reserve is a highly prized
Norwegians will tell you they disagree characteristic and it would be foolish
when they do – and they expect the same to interpret lack of emotion as a sign of
courtesy from you. boredom or as lack of attention.

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8 Doing Business with Norway

Norwegian Teams

The key Norwegian characteristics of continuous consultation and develop an

egalitarianism, consensus-seeking and ongoing buy-in process.
lack of ego tend to make Norwegians
extremely good team players – but the Each team member expects and is
team must correspond to their idea of expected to perform his or her individual
what constitutes a good, well-functioning tasks with the minimum of supervision
team. from superiors. Such unwarranted
supervision might be seen as a criticism or
Therefore, the more southern European lack of trust in professional capabilities.
team (characterised by a group of
individuals working in isolation and In summary, if handled well, a Norwegian
reporting to a strong, instructive-style will be an enormous asset to any team but
leader) is unlikely to succeed. There if he or she is left to feel uninvolved or in
is a need for the team leader to offer any way patronised, they are unlikely to do
more than the bare minimum.

Women in Business in Norway

Norway probably boasts one of the most Although Norwegians would probably
gender-equal economies in the world argue that even more work needs to be
and is often mentioned as a model and done to ensure further progress towards
inspiration for other countries. complete gender equality, not many
countries are anywhere near as advanced
Norway was the first country in the world as they are.
to appoint a Gender Equality Ombudsman
back in the 1980s and a great deal of Therefore, foreign business women should
legislation has been passed to ensure face no gender bias whatsoever and can
equal representation and pay for women be assured that they will be judged solely
in both state-run and private business. on their professional competence.

Norwegian Dress Code

Dress tends towards smart-casual in tend towards smart casual with trousers
Norway. People are expected to be neat, much in evidence – especially in the colder
tidy and well-groomed. months.

However, much less emphasis is placed If travelling in winter be sure to be

upon what people wear than on how appropriately and warmly dressed. It is
professional and efficient they are. Do not best to wear a number of layers as, whilst
dress in an overtly ostentatious way or cold outside, offices can be very warm
wear too much flashy, expensive jewellery indeed. Always take a good pair of gloves
as this would be contrary to just about and a hat in the winter.
every Jante Law. As with the men, ladies

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 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 8. Do not be late. Punctuality is essential

business cultures in the world and and any possible late arrival should
this ‘flatter’ approach to company be communicated in advance.
structure is driven from a deeply held
belief in egalitarianism. 9. Norwegians put business before
relationships and business
2. This egalitarian approach leads to relationships are based on respect
an openness of communication flow for competence and diligence.
within an organisation which may
seem anarchic to people from a more 10. Norway is one of the most gender-
command and control, hierarchical equal economies in the world and
culture. foreign business women will have
no difficulty when interacting with
3. It is important to try to get colleagues Norwegian contacts.
to ‘buy-in’ to any new project or idea
at an early stage – any attempts 11. A strong separation is made between
to impose an idea without prior work and private life and private time
consultation may be resisted strongly. is guarded zealously – especially in
the all-too-few months of summer
4. Norwegians will work very effectively when life is for living.
within a team environment, so long
as the team ethos is seen to be highly 12. Although English language levels
inclusive and that the manner does are generally very high in Norway, it
not attempt to be dictatorial. must be remembered that it is still a
foreign language. Make sure that you
5. Meetings can be lengthy affairs as speak English in a way that is easily
people are expected to contribute understood by a non-native speaker.
to the consensual decision-making
process. 13. Norwegians value direct
communication and can see overt
6. Pre-meeting preparation is expected diplomacy as signs of evasiveness or
and respected. Arriving unprepared even dishonesty. Say what you mean.
for a meeting will appear highly
unprofessional and may lead people 14. Silence is valued and respected in
to question your ability and authority Norway. It is not always necessary to
speak – especially if there is nothing
7. As in all consensus-oriented cultures, much to be said. Do not confuse
decision-making can be a slow silence with a lack of interest or
process. Be patient, as any attempt understanding.
to speed this process up through
avoiding the important discussion
stage will probably backfire.

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 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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