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The power of cooperation: the secret to Swedish success?

Is the Swedish approach to leadership really as special as people think? The Local asks a non-Swedish manager at telecom giant Ericsson for a frank appraisal of Swedes' so-called 'lagom' leadership style.

The power of cooperation: the secret to Swedish success?

Swedes may not be prone to boasting, but they tend to take pride in their leadership model and the success it seems to breed.

But do people who weren’t brought up with a ‘Swedish mindset’ also think Swedish leadership is really that special?

For answers, we caught up with David Moreno, a native of Spain who is now Head of Strategic Programs Practice at Swedish telecom giant Ericsson who is also enroled at the Stockholm School of Economics Executive MBA programme.

Raised and educated in Spain, David now manages a team of nearly 50 internal management consultants at Ericsson. He’s had a long career with both Swedish and international companies that’s taken him from Spain to places like the Netherlands, The Democratic Republic of Congo, and the US  before relocating to Sweden in 2009.

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As a result, David is well positioned to comment on how Swedish leadership compares to leadership styles practiced in other countries. Here’s what he had to say.

Swedes sometimes refer their leadership culture as “leadership the lagom way”, claiming Swedish leadership is less hierarchical. Is that perception true to reality?

Yes, it really is less hierarchical. Leadership in other countries is largely about setting goals and following up to make sure employees are delivering and it’s my way or the highway. There is typically a high organizational distance in other cultures.

But in Sweden, the manager’s role is more like that of a football coach. You guide and support, and a lot revolves around making sure everyone has the possibility to contribute to best reach the goal.

As a non-Swedish manager, is it positive or negative to work in a Swedish leadership culture, compared to what you’re used to from elsewhere?

I can only compare to the other countries I’ve worked in and, against those, I would definitely say it is  positive. Sure, it can feel a bit maddening at times: does everyone really need to have an opinion? Do we need one meeting to agree to have another meeting where we agree to have yet another meeting where we finally discuss content?

But, I'm nevertheless convinced that the Swedish leadership model is better. Of course, it can sometimes take a bit longer to really get started. But once you do get alignment in the group (the famous consensus)  and everyone understands the goals and one's own role in reaching them, i t is very powerful and very little can stop the process. It’s like a huge, unstoppable cargo ship plying through the ocean. And it's pretty cool to see.

Leadership in other countries can be perceived as more straightforward and effective, but I have experienced how it can be the opposite. The boss decides how things should be but, after the meeting, everyone goes off and thinks and acts differently anyway.

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There are upsides and downsides, of course, but I’d still choose the Swedish model ahead of others

Do you see other aspects of leadership that can be considered uniquely Swedish?

Swedish management culture is much more empathetic or, for lack of a better word, respectful. You make efforts not to hurt or upset employees and feedback is given constantly and in a way that is constructive . You tend to forget this in other places

I generally think that’s a good thing, but sometimes it can feel a bit much when people bend over backwards to avoid saying something that might be perceived as hurtful. This is an area where perhaps I’m not completely “Swedi-fied “, as my co-workers say I'm not afraid to address difficult and sensitive questions head-on

You have worked in Sweden and for Swedish companies for several years now. Do you see any changes in Swedish leadership?

Yes, actually. I see Swedes increasingly influenced by the American mentality. I think I’ve seen a trend towards more individualistic, competitive thinking, with more focus on words like “winning” and “beating competition”. Winning is of course important but we shouldn’t underestimate the power of  “cooperation”,  “communities” and “networks”

In my opinion, the Swedish leadership culture should be protected and be something other countries can observe and adopt.

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This article was produced by The Local Client Studio and sponsored by SSE Executive Education

BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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