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Leadership Sustainability

Nordic Leadership in the Age of Transitions: Trust, Fairness, and Procedural Justice

As major transitions that require organizations to rethink their modes of operation sweep the business landscape, their focus has shifted towards Nordic Leadership. In this blog post Ari-Matti Erjansola reflects the principles of Nordic Leadership with research on trust and procedural justice.

22.10.2024

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In today’s complex business environment, leadership approaches emphasizing trust, collaboration, and fairness are more critical than ever.

The ideals of Nordic Leadership emphasize these values, striving to create a culture where individuals and teams thrive through mutual respect, transparency, and shared responsibility. Nordic Leadership seeks to go beyond the individual, focusing on how work is organized and how teams collaborate to solve problems creatively and sustainably.
 

"Nordic Leadership seeks to go beyond the individual,
focusing on how work is organized and how teams collaborate to solve problems creatively and sustainably."


But what does it mean to be a Nordic leader? How can you cultivate trust, ensure fairness, and apply procedural justice to drive personal and organizational success?


What is Nordic Leadership?

At its core, Nordic Leadership is based on the principles of trust, equality, responsibility, and togetherness. It emphasizes a belief that people are competent in making decisions and rather than focusing solely on the individual, it promotes self-managing teams that take accountability for their actions and solve problems creatively.

It also stresses transparent communication, which encourages knowledge-sharing across the organization, creating cooperation and reducing silos.

The result? Higher employee engagement, enhanced innovation, and support for sustained organizational growth.

In addition, Nordic Leadership nurtures the well-being of both teams and individuals, creating a culture of mutual respect and support.


Why Trust, Fairness, and Procedural Justice Matter?

When employees feel trusted, they are more likely to take initiative and ownership of their tasks. This creates a positive cycle where trust leads to greater engagement, which in turn leads to improved performance.

When you trust your teams to manage themselves, by setting clear goals but allowing teams the autonomy to determine how to achieve them, you create creativity, accountability, and innovation, as team members feel empowered to find solutions.

Procedural justice ensures that decision-making processes are transparent, consistent, and impartial, leading to stronger team cohesion and a culture of equality. Make sure that every decision follows a clear and transparent process and include team members in decision-making.

It is essential to ensure that all voices are heard and that fairness is practiced in the allocation of resources and recognition of contributions.

Employees who perceive fairness in the workplace are more likely to trust their leaders and feel secure in their roles. When they know that decisions are made fairly and that processes are transparent, they experience higher levels of job satisfaction and are more likely to stay committed to the organization.


The Impact of Nordic Leadership: Transparency, Collaboration, and Well-Being

Open and transparent communication can flow both ways.

When you are transparent and share information openly, you break down silos and promote cross-organizational cooperation, allowing everyone to feel connected to the organization’s mission. Furthermore, by shifting the focus from individual performance to team-based success, you emphasize togetherness, ensuring that teams work collaboratively to achieve their goals.

When responsibility is shared, teams become more resilient and creative in problem-solving. Finally, by showing empathy and support to your team, you build trust and stronger relationships leading to a more committed workforce.

Nordic Leadership enables you to create higher employee engagement, increased innovation, organizational growth, and enhanced well-being.

Employees who feel empowered and trusted are more invested in the organization’s success and have lower turnover and higher job satisfaction. Transparent communication and collaborative teamwork improve efficiency and decision-making, whereas autonomy and trust create conditions for employees to think creatively and develop new solutions.


How to become a Nordic leader?

To develop your leadership style, ask yourself these questions to reflect your approach:

  • How much trust do I place in my team’s decision-making abilities?
  • Do I empower them to manage their tasks, or tend to micromanage?
  • Are my decision-making processes transparent and consistent?
  • Do all employees feel they are treated fairly and have a voice in important decisions?
  • How often do I communicate openly with my team about successes and challenges?
  • Is my communication clear, or do I leave room for misunderstanding?
  • How do I foster collaboration and a sense of shared responsibility within my team?
  • Do I emphasize the importance of teamwork and collective problem-solving, or is the focus primarily on individual performance?
  • Am I empathetic and supportive of my team’s well-being?
  • How do I show that I care about my employees’ personal and professional challenges?

These guidelines enable you to utilize the collective strength of your organization to face the burning issues in the age of transition with the traditional principles of Nordic Leadership.


Author Ari-Matti Erjansola, PhD, is a researcher, lecturer, and Aalto EE’s program director specializing in organizational development and the impact of learning solutions, with a particular focus on customized training programs. Read more about Aalto EE's leadership programs, MBA programs, and customized solutions for organizations.

 

References
Fulmer, C. A., & Gelfand, M. J. (2012). At What Level (and in Whom) We Trust: Trust Across Multiple Organizational Levels. Journal of Management, 38(4), 1167-1230. https://doi.org/10.1177/0149206312439327
Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational Transparency: A New Perspective on Managing Trust in Organization-Stakeholder Relationships. Journal of Management, 42(7), 1784-1810. https://doi.org/10.1177/0149206314525202
Vermunt, R. & Steensma, H. (2016). Procedural Justice. In C. Sabbagh & M. Schmidt (Eds.), Handbook of Social Justice Theory and Research (pp. 219-236). New York: Springer.

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