Source: theHRDIRECTOR
Date: December 2006

Karsten Hetland, Vice President, HR, Nokia – Discusses the Finnish leadership style and how it has contributed to Nokia's success.

How would you descibe the traits of the Finnish leadership style?
Finns are Nordics, and have Nordic qualities as leaders, such as being low-key, not so hierarchical, transparent and direct. But there are regional differences, too. Swedes and Danes are rather smoother, more polished communicators. Norwegians and Finns are a little more rough and ready. The Finns, unlike the other Nordics, are not Scandinavians. Their language is totally different, and they have a history of being squeezed from both the West – by the Swedes – and from the East, by the Russians. This has made them extraordinarily tough and persistent. They even have a word for this – ‘sisu’.

What do you think are the particular aspects of this style that have worked to such great effect in Nokia?
Let me quote Jorma Ollila, our chairman: “Finnishness works. Honesty, reliability, fairness, directness and respect for others, together with the will to achieve results, are the cornerstones of my own philosophy of how to lead. I am proud to be able to acknowledge that the spiritual core at the source of these values is in my own country’s basic values and roots.” Just over 10 years ago, everyone knew that the company
was in a very tight corner. Finns respond very calmly in a crisis, and act decisively. The decisions made at that time, and implemented without fuss, were key. I think that humbleness has also been crucial to our continued success. Finns are not fazed by a crisis, but neither do they let success go to their heads.

How do you adapt the Finnish leadership style to connect with workers to connect workers of other nationalities based in Nokia Finland?
There has been a large flow of other nationalities to Finland to work at Nokia over the past few years. Of course, it can be a challenge to attract people to somewhere they may see as cold, dark and highly-taxed. But they are often pleasantly surprised, and we give them a good induction, including cultural awareness training. Nowadays, many of the leaders in Finland are not actually Finns. I myself am Norwegian, for instance. So, I think we have to talk more about a Nokia style than a Finnish style, even though its roots are in Finland. Really understanding and living the Nokia values is crucial. This may mean a lot of discussion in order to interpret them very clearly so they mean something to everyone.

Equally,does the leadership sytle prevalent within Nokia have to be adapted when the company has offices in other countries?
It’s important to strike the right balance between a strong core of central values, and a local adaptation of how enthusiasm for them is expressed. For example, engaging people to act according to our values may be done differently in different cultures. Americans express themselves and motivate their employees differently than Finns and, whilst we don’t want to change that, the  tolerance for people playing political games is very low. Let’s say that we are perhaps more like a jazz band than a classical orchestra. We are all playing the same tune, and with the same beat, but there is plenty of scope for individual interpretation and creativity.

As a global company, how do you build relationships and teams when people work in different locations, cultures and time zones?
Clearly, it’s not always easy, but I think the following are important:
a) to invest time in the process of communication, not just in the task at hand
b) to see diversity as an asset, not a problem, and to really use and enjoy it.

We invest a lot in building social networks. We have many informal communities, people who come together to develop and share knowledge or facilitate a work process. This is critical to stay agile as a company. When you have the relationships in place the communication does not have to be lengthy; short does not have to mean impolite, depending on the context. Why send a long e-mail, when a short SMS message may do the trick?

It has been said that people learn most by imitating others - how do you lead by example at Nokia?
One instance is the value we place on humbleness throughout Nokia. It means that people are not afraid to criticise ideas even if they come from the top. If our leaders show that they are willing to accept valid criticism and change their idea if a better one is offered, then that is truly ‘living the value’ of humbleness. Our leaders show great energy and a willingness to put themselves 120% into the task, but they also demonstrate that it’s important to look after yourself.

What are the greatest challenges of leading your workforce, and how hav you addressed these issues?
One of the most exciting challenges, and one which is growing daily, is being able to achieve real collaborative work – both within and between teams, with partners, and not least with customers. Networking skills and in particular leadership behaviour have a strong impact on group co-operation. What we see in Nokia is that the most effective leaders are good at both task-related and relational leadership. We have come a long way, but there is always room for improvement, and this is a challenge not just for Nokia but for all companies.