Nordic Vibes for Inventive Minds: What you can learn from leadership principles from Sweden and Norwegians for your innovation culture

‍Introduction: Scandinavian understatement meets German industry

Imagine the following picture: A German CEO visits a Swedish partner company. At the meeting, a young intern gets in touch and openly discusses a new product feature with the CEO. The German manager looks irritated: “Is that allowed? “The answer: Yes, klr, and it is intentional.

Sounds fictional? That was exactly what I experienced in 1993. We were a small consulting team in a Swedish corporation, booked for our expertise in the area of digital optical communications technology. We had meetings and creative exchanges across all hierarchical boundaries at least once a week and I, just 25 at the time, had the impression that people were talking very openly here. People listened and leadership was understood and accepted as a role, like the engineer or line manager. In the North, hierarchies are not a bulwark, but rather a loose network that is intended to absorb ideas.

That is exactly the difference: In Sweden and Norway, the culture of closeness, openness and participation is the norm in practice. And it is a decisive lever for innovation.

In this article, you'll learn

• How Scandinavian leadership style works
• What German companies can learn from this and
• How you can take the first steps towards a more innovation-friendly culture

Why culture is the underrated lever of innovation

You can buy technology, create culture, and you have to live it. Sounds trite? But it isn't. German SMEs in particular have focused on efficiency and process optimization in recent decades. This has secured world market shares (keyword export world champion), but at the same time has increasingly led to rigid structures. The innovation pipeline is often tied to the bottleneck of the hierarchy.

Studies in recent years clearly show that companies with an open, participatory culture not only bring new products to market faster, but also generate more sustainable innovations. Culture is therefore not a soft “nice-to-have”, but a tangible competitive advantage, which is also measurably reflected in increased innovative strength in sales.

Nordic leadership, what is behind it?

The Nordic working culture is characterized by trust, flat hierarchies and a deep conviction that every contribution counts. A few principles:

• Flat hierarchies: The boss is sitting at the table, not on the pedestal. Ideas can come from anyone and are heard.
• Trust instead of control: Employees are given the freedom to make decisions. This speeds up processes.
• Participation: Important decisions are discussed in the team. This creates buy-in instead of resistance.
• Work-life balance: Sounds like luxury, but it's a fuel for creativity. When you are rested, you think bolder.

A look at Spotify shows how radically different culture can work: With their squad and tribe model, they have created agile teams that develop products on their own responsibility. At Volvo, on the other hand, co-creation with teams has been a practice for years, not just a buzzword. Even government agencies in Scandinavia rely on digital openness and employee participation, a clear contrast to many German offices.

Humorously speaking: While German managers are still planning an appointment for the kick-off meeting, the Swedish team has already completed the first prototype.

Transferability to German SMEs

Does it all sound very Nordic-nice, but is that even possible in the reality of German SMEs? None of us are becoming Sweden now, but the concepts can be adapted very well. A few examples:

• Maschinenba: uA hidden champion from Baden-Württemberg regularly introduces “Open Friday Sessions.” There, employees across departments can contribute ideas for new service models. Result: Within a year, two new digital business models were created.
• medical technology: A manufacturer of imaging devices does not set up error reviews as an apportionment of blame, but as learning sessions. Prototypes are tested in short cycles, mistakes are welcomed and used for learning. Conclusion: Products were approved more quickly.
• Automation technology: A company in NRW forms cross-functional teams that solve interface problems together. Instead of departmental silos, there is “team ownership,” i.e. the team's responsibility for results. The time-to-market for new software components fell by 30%.

These examples show that Nordic style leadership is not an export hit, but an attitude that can also be anchored in German SMEs.

Typical pitfalls in cultural innovation

Of course, not everything that glitters Nordic is gold. There are pitfalls if you want to get into Nordic style:

• Traditional resistors: Phrases like “We've always done it this way” are killers of innovation.
• Misunderstandings: Flat hierarchy doesn't mean that leadership becomes superfluous. Quite the opposite. Leadership must moderate and decide more actively.
• Cultural skepticism: “We're not in Sweden here,” you like to hear. Answer: That's right. But that doesn't stop us from adapting good things.

Impulses for leadership: Your toolkit for Nordic vibes

Five concrete principles that you can implement directly:

1. “You instead of you”: Language shapes culture and closeness.
2. Trust over control: Empower your teams and let them decide for themselves.
3. Create spaces for ideas: Workshops, open sessions, creative formats.
4. “Celebrate” mistakes: Failed attempts lead to learning and breakthroughs.
5. Leadership as a facilitator: Instead of making announcements, set guidelines.

An inspiring example: A plant in Lower Saxony has introduced “Fika” — the Scandinavian coffee break. Just with a twist: Each week, a team member presents a small idea. Some of them make it onto the roadmap. The result? More communication, fewer barriers, noticeably better atmosphere.

Conclusion: Why German companies should dare "more Scandinavia"

Nordic leadership is not a romantic image of Hygge and candlelight, but a pragmatic answer to the challenges of digitization, AI and new business models. It creates the cultural fertile ground on which innovation can grow.

You don't have to move straight to Stockholm, Helsinki or Oslo to do this. But a bit of Nordic serenity could be good for your innovation process — and it might also prevent one or the other endless meeting.

Let's find out together how many Northern Lights are in your company — contact us and we develop your individual cultural strategy.

Discussion questions

• How do you currently deal with mistakes in the team?
• What role do hierarchies play in your innovation projects?
• Would you allow a “you culture” in the management team?
• What could your company learn from Spotify or Volvo?
• What small cultural experiments could you start tomorrow?

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Sources

• Sandberg, Sheryl (2023): Leadership and Organizational Trust in Scandinavia, Stockholm: Nordic Business Press.
• Müller, Hans (2024): Innovation culture in SMEs, Munich: Springer Gabler.
• Andersen, Lars (2025): The Nordic Way of Innovation, Oslo: Innovation Press.
• Harvard Business Review (2024): “Why Trust Beats Control in Driving Innovation,” [online] https://hbr.org [retrieved 28.08.2025]
• McKinsey & Company (2025): “The State of Innovation Culture in Europe,” [online] https://mckinsey.com [retrieved 28.08.2025]
• Karhula, K., Härmä, M., Clifford, S., et al. (2021). Impact of shift work and long working hours on worker cognitive function: The current state of knowledge. Industrial Health, 59(5), 335—356. https://doi.org/10.2486/indhealth.2021-0085