Doing Business in Norway | Navigating Business Culture

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Norway, officially The Kingdom of Norway, occupies the northernmost and westernmost points of the Scandinavian region of Europe. It has a small population of approximately 5.4 million, the majority of whom are native to Norway. The capital city of Oslo has the largest and most diverse population; however, there are a significant number of people in smaller cities like Bergen and Stavanger. Norway is famous for its breathtaking mountain ranges, fjords, and clear views of The Northern Lights (Aurora Borealis).

Norway regularly ranks high on global reviews regarding quality of life, quality of education, and the general happiness of its people. Norwegians place a strong emphasis on work-life balance. The standard workweek is relatively short, and overtime is uncommon. Employees are encouraged to prioritise family and leisure time. Parental leave policies are among the most generous in the world.

There are two official written standards in Norway, Bokmål and Nynorsk, which are used in government and education. Norwegian itself has many spoken dialects that vary regionally. Sami is recognised as an official language in certain municipalities, mainly in the northern parts of the country. English is widely spoken and accepted, with most Norwegians fluent.

Despite its relatively small population, Norway is home to one of the highest GDPs per capita globally. A stable free market with low levels of corruption, Norway also benefits from its vast natural resources, particularly oil and natural gas, making it Europe's largest producer. This wealth has allowed Norway to build a large Sovereign Wealth Fund and maintain a high-quality welfare system and infrastructure. Traditional industries such as fisheries and timber remain important, but Norway has adapted its economy to suit the needs of its highly educated workforce, leaning more into thriving industrial and service sectors, especially niche hi-tech fields.

Despite good relations with the rest of Europe, Norway has stayed fiercely independent from joining the European Union or the Euro, although it does have a special agreement with the EU regarding the free movement of goods and workers through the EEA Agreement. Additionally, Norway is part of the Schengen Agreement and contributes financially to various EU programmes.

Jante Law, or Janteloven in Norwegian, are cultural rules that come from a satirical novel from the 1930's – 'En flygtning krydser sit spor' (a refugee crosses their track/ a fugitive crosses his tracks) by Danish-Norwegian author Aksel Sandemose. Norwegians attempt to live their lives according to Jante Law – a code of conduct that says one should be egalitarian and not think oneself as special or higher than others – for example boasting about your success or claiming the credit for accomplishments. However, the influence of Jante Law is diminishing with the younger generations as in its strictest interpretation, Janteloven can lead to a culture of conformity and discourage people from pursuing their goals or expressing their unique qualities.

That said, Norwegian businesses tend not to be hierarchical and instead focus on pragmatism and efficiency, allowing people to work with as little interference as possible. It is advisable when working with Norwegians to seek out the person responsible for a specific task rather than whom you consider the most senior, as it can be interpreted as an insult to the one responsible for the task if they are not approached first for help. Businesses practice open communication among all levels and encourage managers to have the same approach with their team.

Also, in accordance with Jante Law, managers in Norway are viewed more as coaches and facilitators rather than authoritarian figures. Managers are expected to act as first among equals and encourage their colleagues to perform their best. Employees are expected to take initiative and work independently. Micromanagement is rare, and trust is placed in individuals to complete their work without excessive oversight.

When it comes to decision-making, Norwegian managers prefer to listen to everyone’s thoughts and ideas. Decisions are consensual and thoroughly discussed. This approach, however, can be lengthy and slow, which can be surprising for those from cultures with fast-paced management styles. However, it would be a grave mistake to ignore the Norwegian approach and make decisions without sufficient discussions, as this would likely result in significant pushback. On a positive note, this open, egalitarian management style helps create a positive atmosphere in the team and wider business, keeping workers happier and more efficient.

Norwegians tend to be quite direct communicators, prioritising sincerity and honesty above all else, while disregarding opening small talk questions. They can be viewed as reserved and unwilling to talk with strangers unless necessary. It is uncommon to see overtly emotional displays, and Norwegians do not take kindly to showing anger in public. Norwegians dislike being rushed and instead prefer to be deliberate with their words, which can seem slow to an outsider.

When meeting someone new in a formal setting, it is common to use only first names, even in professional contexts. Unlike some other cultures, titles such as Mr. or Mrs. are rarely used in business interactions. The best way to ensure you stay polite is to follow the lead of a Norwegian colleague.