Uncovering the differences in business culture

18 February 2020

With a strong business relationship dating back centuries, Sweden and the United Kingdom can seem to be similar in many respects. However, the differences in business culture can surprisingly be more substantial than expected. Elisabet Vinberg Hearn, CEO of Katapult Partners and Astrid Trolle
Adams, Lawyer and Senior Associate at LOGOS Legal Services, are looking forward to sharing their knowledge as speakers at the SCC Business Culture Course.

The SCC Business Culture Course aims to highlight the cultural nuances in leadership, negotiation and legislation in Swedish and British work life. Astrid Trolle Adams is looking forward to her participation as a speaker: “I think that it is a fun on-going process, because Swedes and Brits have been doing business for so long.” According to Elisabet Vinberg Hearn, the acknowledgement of the dissimilarities between the nations is essential: “Swedes love Brits and Brits love Swedes, so we sometimes assume that we are more similar than we are. This Business Culture Course can fast-forward your understanding of both differences and similarities.”

Power distance and decision-making
Principally, the power distance is greater in the United Kingdom than in Sweden. “In the UK, there is more of an obvious power distance, whereas in Sweden it is slight and more informal,” says Elisabet. Moreover, the practice of decision-making is a significant differentiating factor. “Leaders are more often expected to make decisions on their own in the UK, whereas there is an expectation of group decision making in Sweden.” Consequently, a British business professional joining a Swedish workforce must be increasingly prepared to engage in joint discussions aimed at reaching a common consensus. “It is important to get comfortable with the fact that decision-making can take longer, whilst what happens after the decisions tends to go quicker,” says Elisabet.

Cultural misunderstandings
Prior to entering a new market, Elisabet advises business leaders to carefully scrutinise the local culture, in order to avoid cultural misinterpretations. Classic examples of misunderstandings are when the British friendliness is perceived as informality, whilst the Swedish directness is misinterpreted as impoliteness. In relation to the British wish of not being too direct, instructions from leaders to employees are often conveyed as suggestions. Hence, Swedish employees in the UK are advised to get comfortable acting on indirect instructions. “Suggestions are sometimes intended to be vague, so that people are given the freedom to choose their specific approach, which can be a cultural mismatch,” says Elisabet.

Cultural aspects of legal systems
The recognition of how English law differentiates itself in comparison to other countries is fundamental. “I hope that the course participants will have better tools when they go back to their businesses and get a general understanding of how it works in the UK compared to Sweden,” says Astrid.

There are various differences in terms of commercial law to be considered. “It is important to know when an agreement is legally binding and imposable, as it can have a great impact on your business relations and activities,” says Astrid. For instance, written business contracts are rather exhaustive in England, which can come off as a complicated procedure from a Swedish perspective. In terms of employment law, English employers benefit from a higher degree of flexibility: “The costs of employing staff are much lower and it is also easier to terminate an employment in the UK.”

As a matter of fact, the cultural aspect of jurisdiction is significant. Since Sweden is a much smaller country than for instance the UK or the US, the risk of crossing a counterpart’s path after a negotiation is constantly overhanging. Hence, the atmosphere of a Swedish business setting is relatively soft. Astrid explains: “Americans are the most brutal when it comes to business negotiations. Englishmen appear to be more friendly, but you can still push pretty hard here. Swedes believe that ‘what goes around comes around’ and the avoidance of conflicts can be in the bones of a Swede.”

Curiosity and humbleness
A human tendency is to regard what we are used to as the optimum. On the contrary, Elisabet states that curiosity and humbleness are crucial for cross-cultural collaborations. She explains: “Whenever we meet someone from a different culture, we should be very curious and humble. The more we are open to other ways of doing things, the more doors will open up for people to connect with us.”

Elisabet describes that the only way to be successful in another market is to clearly communicate a corporate culture, whilst embracing the other country’s culture too. “The important thing is to recognise that the most successful and multicultural organisations are those that take control of their culture and make the most of the fact that they are multicultural,” Elisabet concludes.


             
 Elisabet Vinberg Hearn         Astrid Trolle Adams
 Photo: Anna Sigvardsson     Photo: Chris Renton

SCC Business Culture Course
The SCC Business Culture Course is a one-day course on 17 March, aimed at preparing business professionals for a career in a Swedish or British company. Read more and book here.

By: Sara Apéria