Aalto Leaders' Insight, Vol. 6: Summer 2017 by R S B

A A LTO U N I V E R S I T Y E X E C U T I V E E D U C AT I O N

C RO S S I N G T H E L I N E For an international graffiti artist, national borders are just lines on a paper. Meet EGS, pages 31– 42.

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ORG A NI ZATI O N and its hidden power structures. ES SAY Anu Partanen on her Nordic Theory of Everything. L EADERSHI P How to write – and deliver – a great speech? I MPACT Participants, Aalto EE faculty, and partners share experiences.

Aalto Executive MBA in Security and Risk Management A Journey of Leadership Transformation

Aalto EMBA in Security and Risk Management is a unique specialization program focusing on strategic and comprehensive management of the security and risk issues in a rapidly changing global business environment.

The program is built around the major areas of strategy, leadership, security, and risk management. The participants acquire a comprehensive understanding of the modern business and security environment, develop their strategic competence and strengthen their leadership abilities and practices. This program is ideal for executives and senior specialists who work with security, safety, and risk management issues in their organizations. It also suits senior professionals taking on a more strategic role, and who require a holistic understanding of security and risk management. www.aaltoee.com/aaltoemba-in-security

Aalto Leaders’ Insight is published and curated by Aalto University Executive Education. This magazine is a library of insights. The four long form articles – we call them Books – focus on different aspects of leadership, business and self-development. Aalto University Executive Education offers high-quality executive education (Aalto EE), professional development services for specialists and managers (Aalto PRO), and creative solutions covering the entire entrepreneurship lifecycle (Aalto ENT). Aalto University brings to our offering a multidisciplinary approach, together with innovative learning methods; this provides a unique combination of practical expertise with latest research.

Vol 6: Summer 2017

CONTENTS S TA R T News, Columns and Insights Pages 10-30 FT: Aalto EE among the world’s top 50 11–12 The world is changing and so should leadership 13–16 Figures: Aalto University 14 New in Science and Research 16–28 Developing self-aware leaders 21 Column by Mikko Laukkanen Aalto EE goes to Tanzania 17 How to define talent 22–23 Good morning,Vietnam! 26–28 What is an E – especially if in front of MBA 30 Column by Katja Ahoniemi

LO N G - F O R M BOOK 1 Words of wi sdom Pages 29–40 Drawing Lines Graffiti artist EGS thinks a border betweens states is the strongest line a human can draw.

BOOK 2 ORganization Pages 41–54 Shadow Play True power cannot be seen in an organizational chart.

BOOK 3 e ssay Pages 55–66 The Heretic Author Anu Partanen on the reception of her book The Nordic Theory of Everything.

BOOK 4 leade r ship Pages 67–74 Make Them Listen Meet Sarah Hurwitz – Michelle Obama’s speechwriter.

I M PAC T & E X P E R I E N C E Pages 76–91 Figures: Aalto University Executive Education 76 Maria Nurmi-Köngäs and Helena Siltala 77 Jessie Lim 80 Mika Videman 82 Andreas Nyberg 86 Olli Seppänen 88 Fabian Sepulveda 90

— AALTO LEADERS’ INSIGHT ONLINE STREAM

The Aaltoâ&#x20AC;&#x201C;ESADE MBA for Executives program focuses on innovation and entrepreneurship, and introduces the design thinking methodology as a way to approach challenges. The study modules combine the entrepreneurial spirit of ESADE with Aalto Universityâ&#x20AC;&#x2122;s passion for innovation, and offer participants a unique MBA journey in Singapore, Spain, Finland, and Vietnam. The program is for executives who are interested in taking the next step in their international career and have a special interest in AsiaEurope business relations. www.mba4executives.com

F O R E W O R D

From Thought to Action

PHOTO ALEX TREADWAY

his magazine reflects on patterns of thought and behavior – cognitions, structures of thinking, and the type of behavior to which they lead. The discourse of our time is all too often preoccupied with a division into ‘us’ and ‘them’, involving a great deal of shutting on the outside and turning inward. The articles of this issue of Aalto Leaders’ Insight pose the question where these phenomena originate from and how they can be impacted. Artists who draw from street art seem to be creating the most thought-provoking social art right now, like EGS interviewed on pages 29–40. He raises the question why we turn a blind eye to the anguish of other people. The second long-form article in this issue examines the informal structures of organizations (p. 41–55). Creating genuine change requires navigating between formal and informal structures. It’s intriguing to notice that even the smartest people don’t always conduct themselves so smartly in these situations. The essay by Anu Partanen (p. 55–66) serves as a good reminder that sometimes an outsider has a clearer perspective of ourselves. What is it that leads to thinking the way we operate is the only right one? The fourth long-form article reflects on impacting behavior (p. 67–74). The interview with Sarah Hurwitz points out that a genuine influencer needs to be able to read the undertone and true feelings of the au-

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dience. The phenomenon is evident in world politics on an ongoing basis, French and British election results as recent examples. I hope the sixth issue of Aalto Leaders’ Insight fills your summer with plenty of inspiration – and perhaps even some brand-new thought patterns. ◆ Pekka Mattila, editor in chief Group Managing Director, Aalto University Executive Education Professor of Practice, Aalto University

Read Aalto Leaders’ Insight online and order monthly highlights to your e-mail! aaltoee.com/insight

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S TA RT NEWS, COLUMNS & INSIGHTS

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FT: A A LTO E E A M O N G T H E WO R L D ’ S TO P 5 0

alto University Executive Education (Aalto EE) has improved its position in customized programs in the annual Financial Times global ranking, the most prestigious of its kind in the

world. The company remains the only Finnish player in the world’s fifty best providers of executive education. Each spring, the Financial Times’ ranking rates both openenrolment and customized provol 6

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grams. Aalto EE came 46th out of thousands of peers. According to the ranking, achieving the goals of customized training programs, and willingness to recommend Aalto EE’s services and continue >

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A A LTO E E IS THE NORDIC #1 WITH THE MOST OV E R S E A S C U S TO M I Z E D P RO G R A M S

cooperation with Aalto EE were the areas that improved most compared to last year.The company’s continuous quality and feedback monitoring confirms this trend. MikaVideman, Senior Vice President and HR at Fazer, talks about the cooperation with Aalto EE: “The entire Fazer Energizer program was built through cooperation. Aalto EE is so customer-driven that the program was built around Fazer’s own needs. We discussed issues such as the organization’s idea of energy, and how this shows in the working community and management.”

Pekka Mattila, Group Managing Director of Aalto EE and Professor of Practice at Aalto University, says focus has to be on the customers: ”While we can’t and shouldn’t read too much into individual rankings, it is useful to monitor trends. We have invested a great deal in new training partners and better forecasting in our customer work. Our team is even better than before at sharing the world and goals of the customer organization.” I N T E R N AT I O N A L R E A C H I S I M P RO V I N G Aalto EE already operates in 13 countries and implements programs for key global companies and institutions. Strong internationalism was also reflected in the FT’s ranking, in which – of the Nordic players – the company was the one which had reached the most international group of participants, in percentage terms, with customized programs. One international customer is the Fortune 500 ICT company, Orange. For example The ”Talent Leadership Development Program” was conducted in cooperation with their own internal training organization, Orange Campus. Now participating for the 17th time, Aalto University Executive Education is ranked under the name Aalto University. ◆

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FT EXECUTIVE E D U C AT I O N RANKING 2017 IN BRIEF Open-enrolment and customized programs are ranked separately in the FT Executive Education ranking. The overall listing is based on the total rating achieved in these two categories. The ranking is based on customer feedback and statistics provided by the schools. The Financial Times only ranks the top 50 executive education providers. Globally, executive education and MBA programs are offered by around 4,000 institutions. This year’s top three were the Spanish Iese Business School, the Swiss IMD, and Harvard Business School. Aalto EE’s strategic partners ranked highly; ESADE was ranked sixteenth and Chicago Booth came twentieth.

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PHOTO ANNI HANÈN

WO R K I S C H A N G I N G – AND SO SHOULD LEADERSHIP The fourth industrial revolution is shaking up the way we work. The end is not in sight quite yet, but leaders need to be awake.

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S T A R T / UNSRETEW N A/ SL FC E N F I G AS R : ITA TAIOC TU CNFEII VL &E R ? R SEI ST EY A R C H

A A LTO U N I V E R S I T Y – W H E R E S C I E N C E A N D A RT MEET TECHNOLOGY AND BUSINESS

20,000 370 3,500 students, of whom

professors

are doctoral students

THE FINANCIAL F O OT P R I N T O F A A LTO E E Through its operations, Aalto University Executive Education Ltd contributed a total of approximately

6 schools in the Helsinki Metropolitan Area, and with over 300 years of combined history: School of Business School of Arts, Design and Architecture

2.6 million euros

School of Science School of Chemical Technology

back to the Aalto community in 2016, in various forms, including dividends, lecture fees, and rent.

Over

School of Electrical Engineering School of Engineering

100

bachelor’s, master’s and doctoral degree programs.

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ideo conferences, Slack chats, emails from American team members last thing at night – especially knowledge workers now find their lives permeated with new ways of working. According to Professor of International Business at Aalto University Kristiina Mäkelä, the shift stems from a fourth industrial revolution. “The fourth revolution comes after factories, electricity, and computers. It’s a combination of different changes brought on by digitalization and globalization, and it’s only just begun”, says Mäkelä. She has been analyzing changes in work together with her research group that includes Johannes Gartner, Jennie Sumelius, and Hertta Vuorenmaa. According to the group, work will be changing so much that three key interdependencies loosen: those between work and time; work and place; and work and employment relationships. These changes challenge the entire traditional corporate organizational model, HR field, and leadership styles. “Leadership will be different. It is no longer based on hierarchy or authority, but on how to motivate people. It’s important to think about how to manage the network: orchestrate activities, manage people remotely, and create a corporate culture without people being physically present.”

Mäkelä admits that there are no ready answers. Changes are still underway, and each organization unique. Everyone needs to find their own solutions, with their own strategy, capabilities, and practices as starting points. “I don’t buy into universal, best practices. It’s important to think about what you want to achieve, and what knowledge and practices are needed to get there.” The relationship between work and time is influenced by globalization and a faster pace in general. Digitalization has resulted in things taking place in real time and people communicating across time zones, a 9 to 5 working day taking a backseat. “The line between work and leisure time becomes blurred thanks to people’s individual needs and the spread of mobile technology. Instead of a traditional balance between work and personal life, this can lead to work and personal life becoming integrated,” says Mäkelä.

ccording to Mäkelä, work and place becoming less interdependent doesn’t mean the odd day working remotely, but a much more fundamental phenomenon. As an example, she mentions her daughter’s boyfriend, a Swedish coder studying at a Swedish university, working for a Canadian comvol 6

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pany and living in Scotland, where her daughter is studying. “Place-independent work of this type is increasingly common. Digital nomads can travel the world and choose where to stay put according to the weather, family, hobbies or living costs.” Small, knowledge-intensive businesses like Yousician and Hellon have been springing up also in Finland, offering employees a chance to uproot for warmer climes when the weather turns cold. Employees can decide to relocate together, or choose a period that suits them individually.

ess interdependencies between work and employment relationships mean work transitioning from hierarchies to networks and different platforms. At the same time, career paths become increasingly individual. “The aim is no longer to go up the ladder. A need and opportunities for meaningful work increase, resulting in more freelancers and new technologybased operating models. Employment relationships will be increasingly established on contractual relations. I believe this trend will be expanding to new professions and fields that are not yet affected,” describes Mäkelä. ◆ Heidi Hammarsten

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C O N G R AT U L AT I O N S ! Time to throw hats in the air again: Aalto Part-Time MBA 2015 Graduation Ceremony at the old main hall of Aalto University School of Business in Helsinki on May 19, 2017. Aalto EE’s new custom-made graduation gowns and hats were designed by Aalto University students Eveliina Ronkainen and Ksenia Afanasjeva.

D O YO U WA N T TO B E C O M E A R E D C RO S S AMBASSADOR? This spring, the Finnish Red Cross launched the Red Cross Ambassadors program, which is a new way for Aalto EMBA alumni to do their part in humanitarian work. Volunteering is going through changes: people have the desire to help, but time is limited. On the other hand, companies are

increasingly willing to donate some of their employees’ time as part of their corporate social responsibility. FRC’s Ambassadors program aim to meet these requirements by looking for people who can act as links between the FRC and working life. Ambassadors can carry out Red Cross campaigns in their workplaces, share information about them and find the best pro bono projects. Ambassadors will have access to the Red Cross Ideas Bank and

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be able to participate in brainstorming sessions. The idea for launching the Red Cross Ambassadors program came from Aalto Executive MBA program participants. They were hoping to find ways to do their part in humanitarian work within their own organizations and use their expertise to benefit those in need. Do you want to become an ambassador? Connect: alumni@aaltoee.fi

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The program was launched in April at the UONGOZI Institute.

NEW C O N T I N E N T, NEW C O O P E R AT I O N : A A LTO E E G O E S TO TA N Z A N I A Favorable developments in Africa’s key economies are also creating the need to raise the level of leadership. Aalto University Executive Education’s role as a developer of public-sector capabilities will strengthen internationally. The latest development concerns the highly regarded UONGOZI Institute, which has chosen Aalto EE as its partner to strengthen leadership that fosters sustainable development in Tanzania. The program, which focuses on leadership as a whole, is Aal-

to EE’s first actual project on the African continent. “Our unique cooperation will foster the sustainable development of our society. Improved leadership skills are the key to this. This high-level program will challenge participants to broaden their way of thinking and develop the skills and capabilities required by leaders of the future”, says Professor Joseph Semboja, CEO of UONGOZI Institute. Dr. Pekka Mattila, Group Managing Director at Aalto EE and Professor at Aalto University, says that favorable developments in Africa’s key economies are also creating the need to raise the level of leadership there. “It is always particularly rewarding to engage in the development of public-sector leadership, since it has a decisive impact on society as a whole. UONGOZI, a longvol 6

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standing partner of the Finnish organization HAUS, is the ideal partner for us at Aalto”, says Mattila. Around thirty leaders involved in home affairs administration participated in the first module of a pilot program. Founded by the Tanzanian and Finnish states, the UONGOZI Institute has strong specialist expertise on Tanzania and the African region. The program takes into account the special features of the operating environment, using local expertise and Aalto EE instructors in the facilitation of the program modules. Aalto EE has coached customers working in the public sector including Finnish municipal leaders, health care decisionmakers, senior government officials, and leaders from the Vietnamese Ministry of Science and Technology.

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A A LTO D E S I G N AWA R D E D AG A I N AT H Y È R E S FA S H I O N F E S T I VA L [DESIGN]

alto University student Maria Korkeila has won the Schiaparelli Prize at Hyères Fashion Festival in France. The prize includes a grant of EUR 10,000 from Schiaparelli and a possibility to work at its studios. “I am very happy and surprised about the prize. The jury encouraged me to follow my own path, to listen to myself ”, Korkeila says. “I am so excited and proud of all these students”, professor in fashion design Pirjo Hirvonen states. “The competition is very tough and the students work so hard with their collections.

Maria Korkeila’s collection at Hyères.

MEETING POINT: HELSINKI About 70 Harvard Business School MBA students visited Helsinki in May, working in teams with 12 Finnish companies on human-centered design projects. The Harvard students met with Aalto MBA students to share experiences and feedback. The event provided an excellent networking and collaboration opportunity for all students involved.

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Finnish fashion design has established a high international level.” This year the The Grand Prix Prize was awarded to Swiss designer Vanessa Schindler. Earlier this spring, Korkeila was selected among the ten finalists in this prestigious competition. Photographer Sofia Okkonen was nominated among the finalists in photography, and fashion alumnus Eeva Rönkö, MA, among the finalists in the accessories category. In recent years, the students of Aalto University School of Arts, Design and Architecture have been highly recognized for their work, winning first prizes at Hyéres in 2012 and 2013. In 2016, Hanne Jurmu and Anton Vartiainen won the Chloé Prize and received the jury’s special mention. ◆

PHOTO ALEKSI NIEMELÄ

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ILLUSTRATIONS JARKKO HYPPÖNEN

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R E F R I G E R ATO R FOR QUANTUM COMPUTERS D I S C OV E R E D [APPLIED PHYSICS]

The global race towards a functioning quantum computer is on. With future quantum computers, we will be able to solve previously impossible problems and develop, for example, complex medicines, fertilizers, or artificial intelligence. The research results published in the scientific journal Nature Communications suggest how harmful errors in quantum computing can be removed.This is a new twist towards a functioning quantum computer.

O P E N S PAC E FOR BOLD C O O P E R AT I O N [CHEMICAL TECHNOLOGY]

The opening ceremony for Aalto Bioproduct Centre in Otaniemi, Espoo, was held in May. The center doesn’t isolate its researchers in chambers. The large and bright halls are a single, open space, and the insulated glass walls of the offices on the top floor balcony allow people to work in a quiet set-

Just like ordinary processors, a quantum computer also needs a cooling mechanism. In the future, thousands or even millions of logical qubits may be simultaneously used in computation,

ting while still being surrounded by students and research groups. Bringing new and old experts together is one of the central objectives of Aalto Bioproduct Centre. Closer and bolder cooperation is needed to ensure the success and accelerate the pace of Finland’s bioeconomy. “Bioeconomy is one of Finland’s most important export fields”, says Janne Laine, Dean of the School of Chemical Engineering.

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and in order to obtain the correct result, every qubit has to be reset in the beginning of the computation. If the qubits are too hot, they cannot be initialized because they are switching between different states too much.This is the problem quantum physicist Mikko Möttönen and his group have developed a solution to. The nanoscale refrigerator developed by the research group at Aalto University solves a massive challenge: with its help, most electrical quantum devices can be initialized quickly. “I have worked on this gadget for five years and it finally works!” rejoices Kuan Yen Tan, who works as a postdoctoral researcher in Möttönen’s group.

“Moving from an oil-based economy to an increasingly bio-based economy is a great opportunity for us, and collaboration with companies is absolutely essential in this respect.” Aalto University President Tuula Teeri, who officially opened the center, was clearly delighted. “This is a dream-come-true for me, and it also demonstrates how important science is for society and its well-being.”

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COMPUTERS L E A R N TO U N D E R S TA N D HUMANS [TECHNOLOGY]

[TECHNOLOGY]

The first leg of the journey for Aalto-2, launched to space from Florida, is now safely over. The International Space Station robot arm received the Cygnus cargo spacecraft carrying Aalto-2 and dozens of other small satellites on Saturday 22 April. The robot arm was operated by US astronaut Peggy Whitson from NASA and French astronaut Thomas Pesquet from ESA. “I am glad that I could be a part of docking the Cygnus cargo spacecraft to the Space Station and welcome the QB50 satellites. One of them is Aalto-2 – the first satellite from Finland! I am very pleased that another European Space Agency member state is becoming a true space nation”, greeted Pesquet. The Aalto-2 satellite spent a few weeks at the Space Station and was then launched onwards in May. Aalto’s other nanosatellite, Aalto-1, was launched from India with a PSLV rocket in the last week of May.

Researchers from Aalto University, University of Birmingham and University of Oslo present results paving the way for computers to learn psychologically plausible models of individuals simply by observing them. The researchers showed that just by observing how long a user takes to click menu items, one can infer a model that reproduces similar behavior and accurately estimates some characteristics of the user’s visual system, such as fixation durations. Despite significant breakthroughs in artificial intelligence, it has been notoriously hard for computers to understand why a user behaves the way he or she does. “Previous methods for performing this type of tuning

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ILLUSTRATIONS JARKKO HYPPÖNEN

A A LTO S AT E L L I T E LAUNCHED AND ARRIVED

have either required extensive manual labor, or a large amount of very accurate observation data, which has limited the applicability of these models until now”, doctoral student Antti Kangasrääsiö from Aalto University explains. “We will be able to infer a model of a person that also simulates how that person learns to act in totally new circumstances”, Professor of Machine Learning at Aalto University Samuel Kaski says. “We’re excited about the prospects of this work in the field of intelligent user interfaces”, states Antti Oulasvirta, Professor of User Interfaces from Aalto University. “In the future, the computer will be able to understand humans in a somewhat similar manner as humans understand each other. It can then much better predict not only the benefits of a potential change but also its individual costs to an individual, a capability that adaptive interfaces have lacked.”

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Deve loping Se lf-Aware Leade r s

ver the years, many authors, academics, executives, and other people worth listening to have suggested that the one personal ability that sets great leaders apart from those none of us would like to work for is their self-awareness. In the countless articles, books and blogposts, the argument follows roughly the same logic - that being aware of your own strengths, weaknesses, motivations, values, fears, and drivers is the prerequisite for being a productive, empathetic, impactful, and, as a result, successful leader. All this attention to self-awareness has led to our current situation where the shelves of airport bookshops sag with books claiming to teach you how to be emotionally intelligent during your next long-haul flight, the popular business press parades the next silver-tongued consultant who claims to have summarized all you need to know about yourself and your colleagues to a handful of primary colors or acronyms, and our social media feeds are stacked with online tests that promise to reveal our true selves in just a few clicks. If we believe that there is value in enhancing our selfawareness, but are skeptical of some of the simplistic solutions on offer, then what are we to do? At the core of many of the texts and lectures on the topic of self-awareness is the idea that we must learn to manage and develop ourselves – often through the process of asking ourselves a series of questions. I’ll save you

a lot of time and money by providing one such list here. As with so many leadership topics, if it’s been said, it’s been said earlier and better by Peter F. Drucker. This amended list comes from his almost two decade-old book Management Challenges for the 21st Century (Harper Collins, 1999): (1) What are my strengths? (you’re more likely to succeed by finding the areas where you can excel, than by training to be mediocre at the things you have no talent for); (2) How do I perform? (analyze your own ways of working to become more efficient); (3) What are my values? (consider what kind of a person you want to see looking back from the mirror in the morning); (4) Where do I belong (look for the type of organization and other settings that allows you to prosper); (5) What should I contribute (find the things that stretch you and allow you to make a difference). At Aalto EE, we’ve set ourselves the goal of helping to create a better world through better leadership, and we’ve always realized that this will materialize, at least partly, through developing the self-awareness of the leaders we work with. We don’t believe that a lasting impact can be had with one tool, test, or book, rather we try to encourage the formation of habits and practices that will help people to keep developing themselves. We endeavor to be critical, reflective, and forward-looking, and we encourage all of you to do the same. ◆

DR. MIKKO LAUKKANEN is the Academic Director at Aalto EE. He is also a Researcher at the Aalto University School

of Business and frequently lectures in Aalto EE’s programs around the world.

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How to de fine tale nt? Riitta Lumme-Tuomela developed a formula for talent definition in her dissertation. Here, she explains some of the key points of the model.

COMPETENCE

COMMITMENT

× CONTRIBUTION

PRESENT: JOB DESCRIPTIONS

PRESENT: M I S S I O N , VA L U E S , J O B , S U P E RV I S O R , AND TEAM

PRESENT: PERFORMANCE & P RO D U C T I V I T Y

FUTURE: S T R AT E G I C COMPETENCES

FUTURE: I N I T I AT I V E AND EXTERNAL O R I E N TAT I O N

FUTURE: P OT E N T I A L I T Y COMPONENTS

ne of the outcomes of my study is a formula for talent definition. In the suggested definition, potential is considered by dividing the three factors of the multiplicative formula competence x commitment x contribution into two temporal dimensions: the present and future.” “I’m passionate about fostering potential. It is vital not to only to check the rear-view mirror for what has happened so far, but also to examine individual potential in the future, which is usually more relevant for an organization.” “The model was established on the definition by HR gurus Ulrich, Smallwood, and Fernandez-Araoz to which I added a

temporal dimension: talent defined according to the present and future. I want people to understand the opportunities of future potential. By merely listing present competencies, a vital question remains unanswered: does a person have the potential to cope with a situation we don’t yet foresee.According to the formula, potential is a combination of curiosity, insight, determination, and engagement.” “A key feature of talent management is knowing what talent means. The way it is defined affects practical measures. For instance, if you think talent is natural, recruitment becomes important – finding existing talent. If, on the other hand, you

think anyone can have talent, you invest in training. This type of thinking creates freedom for the organization, as it does not offer a universal definition of talent. Each organization needs to define its own.” In addition to the temporal dimension of future potential, Lumme-Tuomala emphasizes another aspect: ”Talent is required in areas of an organization engaged in strategically significant work. In other words, talent is not only needed in the corner office, but coders or customer service could be strategically important. And strategic capabilities and competencies need to change along with a new strategy. If strategic

‘O

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goals are the main focus in customer service, that’s where talent is needed the most.” The third aspect LummeTuomala mentions is the multiplicative character of the formula. “If one of the three Cs – competence, commitment, and contribution – amounts to zero, the sum of the whole formula is zero. For example, if contribution and competence are in good shape, but commitment is completely lacking, the first two do not really help either.” “Measuring potential does not make use of numbers, but metrics are qualitative. This is in line with today’s working life, where attaining quantitative targets is no longer the only aspect that counts, and features such as emotional intelligence, interaction skills, empathy, responsibility, an ability to get along with others, and self-awareness are important.” ◆

Riitta Lumme-Tuomala, (M.Sc.Econ., EMBA), Head of Growth, Director Russia and Talent Management, defended her dissertation completed under the Aalto Executive DBA (Doctor of Business Administration) program. The topic of her DBA dissertation is “Talent Management in the Humanitarian Aid Industry”. The dissertation complements research on talent management by exploring the eventual benefits of talent management in non-profit organizations.

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G ROW T H L E A D E R S – AC C E L E R AT I N G G ROW T H Deep-rooted structures and attitudes prevent companies from harnessing their full growth potential. The new Growth Leaders executive network is designed to help organizations unlock and accelerate growth. The network was created in partnership by Aalto University Executive Education, Annalect Finland, internal digital customer experience startup of Tieto, and ad agency Bob the Robot. Savings-oriented thinking that has gained a foothold in companies in recent years is on the brink of change. A study on large corporations by OP Group and Aalto University researchers indicates that growth is finally on its way. The Growth Leaders network aims to accelerate growth by increasing the level of ambition in organizations and focusing on key issues. Six times a year, members of the network are invited to delve into current themes related to growth and the impact of marketing on

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turnover, with topics such as: How to support the building of significant brands through analytics? How does building customer experience differ from marketing and brand building? How should a company be organized to harness maximum growth potential? Members are mainly marketing directors and other members of top management. Aalto EE’s network of experts, the systems and concept expertise of Annalect and Tieto, and ad agency Bob the Robot with its track record of Finland’s most prominent marketing concepts create a solid foundation for the network. Members have the opportunity to invite colleagues to events. Growth Leaders is a platform where members receive support from each other and top experts. Open discussions in a confidential setting uncover ways for each person and their organization to leave a savingsoriented attitude behind and head into growth. Additional information: http://www.aaltoee.com/program/growth-leaders/generalinfo

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N M U L O C

What’s in an E – e specially if it’s in front of MBA?

ave you ever wondered what the difference between MBA and Executive MBA programs really is? The typical answer to that question revolves around statistics and timetables. EMBA students tend to have more years of work experience than MBAs. Also, EMBA programs are, almost without exception, delivered on a part-time basis, whereas MBA programs come in both full-time and part-time formats. While that information is useful to a certain point – it tells a potential candidate whom they can expect to meet in the classroom, and how they need to schedule their work and study responsibilities – it doesn’t yet tap into the core of the differentiation. There is no magical age or amount of work experience that transforms each person from an MBA to an EMBA candidate. What is crucial is the stage each candidate’s career is in. MBA students are explorers: they are still figuring out where exactly they should head in their careers, and want to use the MBA as a springboard into new opportunities. EMBAs have accumulated managerial experience and found their groove, and are accelerating or cementing their professional path with the degree. EMBAs are more likely to have existing business experience. MBA students may have a prior degree and professional experience from a field such as engineering, but find themselves drawn to the world of business and hence need

to enhance their skillset to meet their aspirations. EMBAs are more aware of how they function as managers, but MBAs need to dig deeper and often explore their personal strengths and areas of leadership development for the first time. MBA graduates are more likely to change career paths, jumping into new functional areas of a business or switching industries. To prepare for this, MBAs get their hands dirty and delve into a deeper, more practical level in their business studies. EMBAs approach the topics from a more strategic viewpoint, learning to fluently converse on all areas of business in the boardroom. So MBAs learn to crunch numbers, EMBAs need to understand which analyses to ask for, and how to translate the results into sound strategic moves. EMBA programs tend to be generalist, whereas MBAs specialize in a certain area through their electives. MBA students often fund their studies themselves, whereas the employer of an EMBA student is likely to be paying for the tuition. Both MBA degrees naturally have many things in common: everyone has an interesting background that they can draw on to share experiences in the classroom. All students go through a transformative experience, learn about the core areas of business, improve their teamworking skills, and receive new networks. Regardless of the E, all graduates are equipped to jumpstart the next phase in their careers. ◆

DR. KATJA AHONIEMI is the Associate Director of Degree Programs at Aalto EE. She has worked as a full-time MBA program director at

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Imperial College London, and is now the program director for the Aalto-ESADE MBA for Executives.

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S T A R T

A A L T O

E E

N E W S

GOOD MORNING, VIETNAM! Aalto University Executive Education has provided high-quality leadership development services in the Asia Pacific region since 1995. At the end of 2016, the company expanded its business to Vietnam. The first group of Vietnamese senior civil servants from Ministry of Science and Technology (MOST) finished Aalto EE’s innovation management program in November 2016.The program was a success. Currently, Vietnam is keen to continue improving the quality of Research, Development and Innovation Policies in the country by educating more public sector managers with Aalto EE’s offering. In the Asia Pacific Region, Aalto EE’s programs are available in Singapore,Taiwan, China and Indonesia.The company has had its subsidiary in Singapore since 2000, and a new Singapore City Campus was opened in May 2016. The first, six-day long, Vietnam MOST Innovation Management Program started off in Finland. The group stayed in Helsinki for a couple of days, after which they traveled to Singapore to finish the remaining segment at Aalto EE’s Singapore Campus. The program aims at building the capabilities of theVietnamese

The first Vietnam MOST Innovation Management Program started off in Finland. Former Prime Minister Esko Aho lectures.

public sector for driving innovation and generating organizational and system level impact. Finland and Singapore were chosen as training locations since they both offer an excellent benchmark and learning environment for the training. “These two nations are ranked 5th (Finland) and 6th (Singapore) in the Global Innovation Index (GII) in 2016. In addition, Finland’s entrepreneurial ecosystem is undoubtedly one of the most vibrant in Europe and arguably in the world. The successes of Slush, Startup Sauna, vol 6

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and the Aalto Entrepreneurship Society (AES) among other organizations have resulted in the building of a globally recognized entrepreneurial and innovation community”, says Anu Sirkiä, Executive Director for Asia Pacific, Aalto EE, at the time. Vietnam is a dynamic emerging market with over 92 million inhabitants.The country has the fastest growing middle class in Asia. Enhancing education and developing national innovation and entrepreneurial system is high on the agenda of government and major cities.

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S T A R T

SUMMER READING: B O O K S TO PA C K A LO N G O N VAC AT I O N Aalto University researchers give their tips on entertaining and professionally rewarding summer reads. AINO TENHIÄLÄ

had its critics, it continues as a topic of continuous discussion. Strongly recommended.”

Professor, IE Business School, Madrid, Visiting Professor, Aalto University

J A R I Y L I TA L O

Managing a Growth Company: Zook, Chris & Allen, James : The Founder’s Mentality – How to Overcome the Predictable Crises of Growth “The book gives insight on managing a growth company, with a key message of barriers hindering growth being internal. Leveraging startup thinking for longterm growth serves as the guiding light. For a glimpse of what the book offers, you can read an online interview with the author.” http://knowledge.wharton. upenn.edu/article/160609b_ kwradio_zook/

Visiting Lecturer, Aalto University

Helping and Receiving Help: Edgar Schein: Helping: How to Offer, Give and Receive Help? “The book provides a good, concise foundation for human relations in working life and beyond. The perspective is on helping and receiving help. Helping is linked to professional relationships in leadership, training, and consulting, but also to daily interactions both in our personal and professional lives.” Interaction: Adam Grant: Give and Take: Why Helping Others Drives Our Success.” “Another title on interaction that may be widely read already, but approaches interaction and relationships from a different angle to Schein. It invites readers to examine and rethink the be-

Impact of Corporate Culture: Laloux, F., & Wilber, K.: (2014). Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage in Human Consciousness “The book shakes up views on what corporate culture is all about. Although the book has a alto leade r s’ i n si g h t

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S T A R T

havior of themselves and others in a new light.”

theme for managers to take along on vacation. Change and people’s attitudes to it are vital for management to understand. The book is a concise, simple, and entertaining package on the topic, with plenty of food for thought to mull over also with children and grand children.”

Titles in Finnish: Lauri Järvilehto: Monenkirjavia kuvitelmia (English transl.: Multicolored imaginings) Frank Martela: Valonöörit (English transl.: Luminaries) “The books share a similar constructive and interpretative viewpoint.They call readers to reflect on their social reality and related interpretations in a new way, while opening up philosophical dimensions to personal leadership and thoughts around self.”

Philosophy and Wisdom: Paolo Coelho’s works Indian Hindu and Buddhist wisdom Books on ethics, such as Axel Fredenholm: So Have I Heard: Iti Maya Srutam Books on mindfulness “In addition to business staples, during my career I’ve enjoyed other types of books with a more philosophical nature recommended by top executives. Here are a few examples, although I do recommend exploring the genre at large according to your own interests. In my view, the biggest challenges for leaders and leadership are looking after themselves, fine-tuning their focus, removing distractions, finding an ethical certainty for activities and leadership, and maintaining a balance in the organization and in oneself. To lead intelligently, wisely, emotionally, ethically, and with values, you may find the right food by going a little further afield beyond books on business tips.”

MINNA LOGEMANN Professor of Aalto University

Digitalization in Finnish: Virpi Hämäläinen, Hanna Maula, Kimmo Suominen: Digiajan strategia “A new title for summer cottage bedside tables for directors in Finland, which serves as a nice, compact package on the challenges and potential of the digital age for strategy building. Nothing too groundbreaking, but does wake up to realize how many elements on a director’s desk are affected by digitalization. Easy to read, well-summarized.” Classic on Change: Spencer Johnson: Who Moved My Cheese? “Light, easy reading on a classic vol 6

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S T A R T

O R I G I N S O F A RT [ A RT ]

Two million years ago, our ancestors were running down antelope on the African savanna. Instead of relying on complex weaponry, they relied on endurance and they chased their prey until it died. This process often derailed the hunters’ consciousness into transformation hallucinations. Studying the last hunter-gatherers of the Kalahari, Aalto University doctoral stu-

I N N OVAT I O N AWA R D F O R WO M E N TO P RO F E S S O R H E L E S AV I N [TECHNOLOGY]

Professor Savin has developed an applied nanotechnology method for producing high-capacity solar cells with the help of “black silicon” that employs nanostructures. This year 2017, the innovation award for women goes to Professor Hele Savin from Aalto University. Professor Savin has developed an applied nanotechnology method for producing high-ca-

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I N

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R E S E A R C H

dent and artist Mikko Ijäs was able to establish a connection between the hallucinations, trance ceremonies, and the imagery depicted in rock art. Ijäs claims that some of the earliest examples of visual depictions could be explained through the experiences of the persistent hunters. Ijäs has titled the visible evidence as the “fragments of the hunt”, which are not just depictions of hunting, but allegories, such as adoration of the animal’s grace, transformation imagery, depictions of tracks, and images of running people. Origins of art as we know it. In his multidisciplinary thesis Fragments of the Hunt: Persistence Hunting,Tracking and Prehistoric Art Ijäs covers several fields of inquiry including psychology, archaeol-

pacity solar cells with the help of “black silicon” that employs nanostructures. The technology lowers the production costs of solar cells and improves their efficiency, making the production of solar power more efficient, particularly in the north. The same innovation could also be used in medical imaging, to reduce the radiation dose of patients, and in several space and security applications. Professor Hele Savin has contributed to the development of her own field of science and cooperated with the leading Finnish and international research institutions and enterprises in the field

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ogy, art history, ethnography and paleoanthropology. Ijäs defended his dissertation at Aalto University in the beginning of June. “The psychological and spiritual aspect of hunting and expression through rock paintings simply cannot be ignored,” says Ijäs. “These artists were hunters who tracked their prey and recorded the transcendent, out-ofbody sensation they experienced when taking the life of an animal. I firmly believe that this is what is really being expressed in the ancient rock art.” “The art shows the deep bond between the hunter and the hunted, the inter-connectedness with which the world was viewed, and the profound respect that people had for the taking of life.”

with excellent merits. Professor Savin works at Aalto University School of Electrical Engineering. The innovation award from the Parliament commemorates the anniversary of universal and equal suffrage on 1 June. The award is worth EUR 110,000 and it will be granted in 2017, 2018 and 2019. The award is granted to a woman or a group of women for a scientifically significant innovation in the field of technology or economy. The Technology Academy Finland foundation has arranged the award process in practice. The Chancellery Commission of the Parliament has selected the winner from the group of candidates.

BOOK 1 [ WORDS OF WISDOM ]

D R AW I N G L I N E S “A border between states is the strongest line a human can draw”, says world-touring graffiti artist EGS. Journalist Reetta Räty met him in Helsinki

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et’s imagine we are sitting in an airplane. We fasten our seat belts. We then grab the inflight magazine from the seat pocket and flick through to the map pages at the end. Dozens of lines crisscross from big cities like Frankfurt and London, whether long, short, or arching all the way across the entire spread. The lines denote flight routes. These days, you can fly to the other side of the world in less than a day. Well, assuming you have the right passport, visas, and credit cards. Let’s keep flicking to Central Asia. Gigantic Kazakhstan eight times the size of Finland has a similar shape to Mongolia, and a border line that meanders between Russia and China. The African continent has a familiar form, as do its arrow-straight borders. Egypt is a box, Libya has a pointed end. Maps are images of the world, yet borders that divide states are human inventions that keep changing with the passing time. Let’s close the magazine, and ask the air hostess for a small bottle of white wine.We’ll have a look at some other types of maps. Maps drawn by Finnish graffiti artist EGS.

hree large works of art hang from a workspace wall in a former industrial building in Helsinki. The triptych is an interpretation of the world map. Upon closer inspection, you notice the continents forming the letters E, G, and S. EGS is a Finnish, world-touring artist, whose

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trademark – or life’s mission – is encapsulated in the three letters. He has painted along streets, in tunnels, and on the side of trains in over 50 different countries, but is also the first graffiti artist whose works have been bought by the Finnish National Gallery for its collections. He has chosen not to appear under his own name, and there are no public images that show his face. EGS has dozens of abstract maps sprawled across his workspace floor. The countries are difficult to recognize, which is not so much down to the abstract nature of the works, but the subject of the exhibition he is working on. He will be opening his biggest exhibition to date at Kunsthalle Helsinki in January 2018, devoting the preceding 1.5 years solely to working on the exhibition. EGS will be the first graffiti artist to display works at Kunsthalle Helsinki, which was first opened in 1928. Over the years, the gallery has exhibited works of names such as Helene Schjerfbeck, Reidar Säreistöniemi, Andy Warhol, Alvar Aalto, Kaj Stenvall, Marlene Dumas, Arne Jacobsen, Eero Aarnio, and Eero Saarinen. How does it feel to follow suit? “I’m really flattered”, says EGS. Graffiti artists have had to get used to their works being displayed in group exhibitions, as part of a wider phenomenon. But now EGS will fill the entire Kunsthalle with his works: maps, sculptures, and paintings. It’s fantastic and nerveracking at the same time. “I think about the exhibition every single night.

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I guess you wonder whether you’re mature enough as an artist – despite having done this for nearly thirty years.”

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raffiti was about marking my own city”, remarks EGS. It started with an electricity box on my home street, then taking the tram to the tunnels and railway tracks on the other side of town. Soon he simply had to go to Stockholm, then London, Copenhagen, Amsterdam, Hamburg, and Tallinn, before Poland, Hungary, Italy, Spain, Austria, Albania, Moldova, Czech Republic… He would paint with locals in different parts of the world, usually on the outskirts of a city and deserted wastelands. “We’d roam along railways with random guys I met locally.” Born in 1974, EGS is now 43 years old. He sees the graffiti trips of his youth as the equivalent to

sought acceptance in society.” But EGS is grateful for being allowed to go, seek new things, and learn about the world. “Caging someone doesn’t make any sense.”

he young Finnish men weren’t deterred by borders between countries. “At the time, Europe sought to open its borders, and it was fairly easy for Finns to travel from one country to another. Now there’s a lot of noise about closing borders.” As an adult, EGS has continued to travel, flight distances only getting longer. As a youngster, he’d go where graffiti was a big thing, but now seeks out places where it’s a novelty. From Europe, he has continued to Africa, Australia, Asia, and Latin America, by now inscribing the letters EGS in about 2,000 different places around the world. There are photographs of most of his paintings.

“Now it’s easier to see, but experiencing is just as difficult as before.” Erasmus exchange periods. Doors were wide open into Europe, and he had a chance to broaden his mind. Not everyone lives or thinks the same way, or values the same things. “Getting a taste for travel kindled a desire to see and experience even more. We’d clean toilets on a cruise ship in June, then travel by interrail around Europe in July. We’d meet up with some guy in a city who’d know someone else, then buy a phone card at the railway station or look for a coin-operated payphone and contact them.There was no internet, but we came to see that graffiti was a global phenomenon.” What did you parents think about your travels? “They were probably worried. Doing something bordering on illegal is nothing to boast about. It wasn’t exactly a productive activity that

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EGS returned from Kenia the day before we meet, and the next interview is scheduled between his trips to Italy and Murmansk. “I met some artists in Kenia, and painted in Jericho, Nairobi, where Obama’s father lived.” He finds new contacts online. “Before Instagram, you had to travel to Barcelona to see a particular mural. Now it’s easier to see, but experiencing is just as difficult as before.” Travel and leaving your mark is just as important as before the internet. “Information is so easily accessible these days, even without moving an inch. But just knowing about something doesn’t mean you know it.” That’s why EGS travels. For unique experiences. Being interested in history, like this artist is, means you always learn something.

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What happened in Italy? “I was there just to paint.” Most contacts with other graffiti artists in Europe stem back to EGS’s interrail years, when he travelled from one place to another trusting there’d always be a friend’s friend willing to put you up on a mattress or couch. Instead of a place for the night, you were more likely to need a place for the day. Nights were for painting. “These days I tend to stay in hotels”, EGS mutters. How about Murmansk?

by the international community, which is another indication that a state mainly refers to an agreement. I’m interested in who decides where the border runs at a given time.” The idea for depicting lost states came about when EGS was drawing his own world maps.The ones that formed the letters E, G and S. He became interested in the power of the lines he drew – lines between states. “I’d add a line on my own map, and began to think how probably the same happened as generals drew border lines on a map in a tent or hotel before lighting a cigar as a sign of completion.

“A state is mainly an agreement. I’m interested in who decides where the border runs at a given time.” “I was invited as a visiting artist for an art festival, and will be painting a permanent mural.” That’s how times have changed for street artists. Instead of running away like they used to, they are now busy responding to invites.

GS stands behind a table spray-painting. He is working on a painting for his exhibition at Kunsthalle Helsinki on the theme of lost states. These are countries that no longer exist, which is why the maps have an unfamiliar air about them. The subject of the painting he is busy creating is the Tanger free trade zone. “I’ve been browsing history books and stamps in search for states that have disappeared”, explains EGS. He shows some of the works sprawled across the floor: that there is the Free Territory of Trieste, Perak was in India, Tierra del Fuego was independent for a year. This is Tuvan People’s Republic, over there Matsuko, and there the Free City of Danzig. “These states haven’t generally been recognized

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This possibly took place thousands of miles away from the people whose lives that line would disrupt. The border was just a matter of decision.” EGS has always wanted to know what was before us.“I want to read the stories behind different places. History is important to me.There’s a lesson there, and you don’t start to imagine you live in a static, permanent place.” “Drawing a new border can put a stop to someone’s route for fetching water, cattle paths, daily lives.” A border is a tool for exercising political power, even if with time it begins to seem neutral. The person who draws a line has a huge amount of power. This is something EGS hopes people who view his works pause to consider. “Who decides on borders in the end, and who do they consult? My paintings don’t have an exact message, but do say these matters need to be considered.You could think about whether Palestine is or isn’t a state. Or the self-proclaimed state of Transnistria, where I painted some time ago.” We talk about the box on the African continent

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that caught the eye in the inflight magazine. “Brits who drew the maps for the Middle East and Arabian Peninsula put the ruler through its paces. There was no regard for cultures with their strong ties to nomadism and roaming from one place to another. Drawing a line can define the lives of millions.” Also in the artist’s home country Finland, people were forced to leave behind regions lost in the war according to whoever drew a new line. “When Finland became independent, many had to leave their cows in meadows across the border.”

GS’s workspace is located on the top floor of a former industrial warehouse, with spring light diffusing through winter-grimy windows.

new version of EGS’s work Europe’s Greatest Shame #11 (2017), which served as a statement of cultural professionals towards human rights and freedom of speech among refugees. The words “Refugees Welcome” were printed on the bottom corner of the sheet. The work stemmed from frustration with the Syrian war and Mediterranean crisis. “Downing white wine and stuffing our faces with feta along the same shores where someone else is drowning in the salty water was a really distressing thought”, explains the artist. Despite EGS’s peaceful, contemplative demeanor, there’s now a sense of fervor in his voice. “The most shocking aspect about “resisting” refugees is the total disregard and rejection of human value, and the senseless coldness, anger, and

The globetrotter wanted to tell stories, but “didn’t have the patience or skills to even begin to write a book”. The artist has put his spray cans aside for a while, as he adds the finishing touches to his map with a syringe. Hang on, it looks like a… “Yep, it’s a drug needle. I use it for painting.” Oh, but why a drug syringe? “I was looking for something to create fun, interesting lines, a way to shoot color in a fascinating way. Somehow I came to think of the shunned, fear-inducing drug needle. I tried out different sizes and noticed this size works.” EGS fills the syringe with black color and hovers it over the painting. Black drops and lines begin to appear on the white canvas. A border. “There’s a connection – often where I paint, drug needles rustle under the feet. Dingy streets, wasteland, outlaw life.” In the spring, Helsinki residents will be treated to EGS’s art in a much more institutionalized venue than a wasteland. Draped on the façade of esteemed Ateneum Art Museum in March was a

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heartlessness! We’re talking about people here, real people, not some masses.” Once again, EGS finds similarities with Finnish history. “What if the people out there were spitting at Finnish war children?” About 80,000 Finnish children were sent to other Nordic countries during the Winter War and Continuation War. “What’s the difference if they were now spat at? What?”

fter high school, EGS studied in Britain for five years before returning to Finland to work in advertising. In Helsinki, there was zero tolerance towards graffiti at the time; it wasn’t allowed and the intention was to criminalize it even more. Now it’s the total opposite – murals are commissioned for apartment block facades, and street art is turning mainstream.

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How did the graffiti painter become an artist? EGS doesn’t really know what to say. It happened gradually, something like this: The globetrotter wanted to tell stories, but “didn’t have the patience or skills to even begin to write a book”. Instead, he painted on paper what he always paints, three letters. This led to communicating about what it means to be European, colonialism, lost states… “As a twenty-something art student in London, I didn’t have that much to say to the world in the

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form of art. There wasn’t much I wanted to tell. Now I do. In that sense, art is part of a thirty-year process. A story began to form in my head, now it can unfold.” “But what I paint on the streets can’t be framed just like that”, he explains. Graffiti isn’t a question of individual works of art, but more of a performance. “Being able to load 2,000 photographs here with the letters EGS is a work of art. Not a one-off, nice photo with great colors.”

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According to EGS, his street art around the world is a “secret and breathing space you don’t need to share with anyone or wait for it to be approved or rejected.” “No need to ask, there are no rules.” Working indoors is another matter altogether. There are frames, exhibition spaces, meetings, timetables, arrangements, viewers’ opinions on what constitutes as art. Street art is similar but the opposite of everything at the same time. “I don’t take stupid risks though. In many places where I paint, graffiti is a totally new phenomenon. We’re not talking about taxpayers’ money here, there isn’t any. Public space is public space, without ownership ties like in our corner of the world.”

t’s all about a right. A right to draw a line. Who has the right to draw in a tunnel or on the side of a train – or on a map? Are map and graffiti lines related? “There is a connection”, EGS answers. Someone will always draw a line, someone else doesn’t

WHY E, G, AND S?

hy the letters E, G, and S? “I’ve haven’t told this before”, EGS says suddenly. “I experimented with different names at the turn of the 90s. At the time, international brands were pouring into Finland, such as Gillette foaming gel Edge. In fall 1991, at a time when U2 released its album Achtung Baby, I used the name Edge in my paintings. I was somewhere near Siilitie metro station in Helsinki but couldn’t fit Edge into the space, and only wrote EDG, which felt a bit silly. But the shorter form stuck with me since.”

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get asked, someone defies the border and it gets moved, as do the rules that apply. EGS mentions Finland’s neighbor Estonia as an example of borders, and the might on the one hand and fleetingness on the other of lines on a map. In the 1200s, Estonia came under the rule of German knights before ending up in the hands of the Swedish and Russian empires. Estonia gained independence in 1918, but was incorporated into the Soviet Union in 1940, and became independent once again when the Soviet Union collapsed in 1991. Plenty of lines have been drawn and redrawn by others. Estonians of EGS’s age were born in the Soviet Union. Despite a distance of only 80 kilometers from Helsinki also then, there was hardly a connection across the sea, which was illuminated by floodlights to ward off intruders. Now you can take a daytrip to Tallinn for a meal or to stock up on cheap beer, with the sea dotted with cruise and charter ships. “Estonia is a good example of how temporary borders are. It would be interesting to think what Finland would be like as part of the Soviet Union, if the border was in a slightly different place.” Berlin is another close example of the power and fleetingness of borders, with residents who have lived in a unified Germany, then in East or West Germany, and in a unified country again. “What next?” the artist and his maps ask.“There will be new borders, nothing is forever.”

hen you travel a lot, you learn about new countries, but also about your own preconceptions. EGS talks about his trip to Transnistria, which is 200 kilometers in length and 20 kilometers wide bordering on Ukraine in the east. It broke away from Moldova on its own accord. With a territory inside the Moldovan borders, Transnistria hasn’t been recognized by any other country. Do Transnistrians feel Transnistrian?

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“A border between countries is the strongest line a human can draw.” “I don’t know”, says EGS. “I wonder if it really matters what the country or state is?” The state may or may not have a huge effect on identity: also language, religion, and ethnicity play their part. With a share of 32 per cent, Moldovan Romanians make up the largest ethnic group in Transnistria. Recent history doesn’t help much in defining specific borders, and weapons are resorted to too often. Transnistria declared independence from Moldova in 1990 just before Moldova itself declared independence from the Soviet Union. In summer 1992, the conflict ended in intervention by Russian troops and subsequent ceasefire. EGS mentions Crimeans. “How do they feel about being the focus of global attention? Crimeans and their thinking are

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being defined by other countries through international power relations. But what do the people think themselves? Are they perhaps more concerned about not having electricity or medicine? What do we know about that?” Art doesn’t necessarily offer answers – you need to travel and meet people. But you can examine states as constructions and institutions through art. It can remind of alternatives and history, and spin ideas into motion. “I guess it’s about also waking others to think about how we define people’s identity and economy”, says EGS. “You can ask what a state is. A border between countries is the strongest line a human can draw.” ◆

This article in Finnish online: www.aaltoee.fi/blog

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BOOK 2 [ O RG A N I Z AT I O N ]

S H A D OW P L AY True power cannot be seen in an organizational chart, but lurks at the companyâ&#x20AC;&#x2122;s seams, erupting as passive resistance or a sudden outburst of tears. Journalist Annukka Oksanen embarks on an expedition into power structures that are hidden. Illustrations by Anja Reponen.

In the conventional, hierarchical pyramid model, the authority of CEOs was established on their position, and their mighty orders were rarely questioned openly.

here there are people, there is power and its quests. Management, middle management, subordinates. Taskforce, team, network. Matrix, line organization, cellular model. Power outlined in an organizational chart denotes formal governance and authority, while informal, hidden power lurks in the shadows. Although hidden power may sound like a dirty word, power as such is neither dirty or clean. It simply exists. But the way it is used is a defining feature. Does an agile, idea-rich network harness power as a resource, or does power outwork itself as fear-mongering conniving? This article seeks to find out what type of power remains hidden from an organizational chart. “I’ve never come across an organization without a power structure. Some type of system always forms even if by force – formal or informal”, states Eero Vaara, Professor of Organization and Management at Aalto University. “Power is a neutral concept, which refers to social activity among human beings that can be harnessed either for good or bad”, characterizes Kristiina Mäkelä, Professor of International Business and Vice-Dean for Teaching and Learning. The role of informal power along with the significance of social capital, networking, and expertise have become signs of our times. “Governance and power are two different things.We are now in an era where other types of

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power besides formal authority are increasingly prominent”, describes Pekka Mattila, Group Managing Director at Aalto University Executive Education and Professor of Practice at Aalto University School of Business.

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he role of knowledge and relationships are heightened. Power is more diversified”, continues Olli-Pekka Kauppila, Assistant Professor of Organization and Management. In the conventional, hierarchical pyramid model, the authority of CEOs was established on their position, and their mighty orders were rarely questioned openly. “The former way of thinking was that the director’s authority was reduced if he or she delegated power to a subordinate, whereas now sharing power is a mark of a good leader”, remarks Sari Kuusela, D.Soc.Sc., author, and HR Director at Lähi-Tapiola, who has researched power in companies. As ways of working transform and the ideal of freedom of individuals strengthens, power restlessly seeks out new routes. This shift is further accelerated by technological advancements. “We still have a far too linear and Taylorian view despite being at the brink of a major, disruptive change”, Mäkelä predicts. Scientific management that became known as Taylorism was a theory coined by Frederick W. Taylor (1856–1915) that revolutionized industrial manufacture in the early 1900s. It refined a linear

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“We are heading towards personal authority, which increases the role of expertise and social networks.”

production process by dividing it into segments. Taylorism is no longer enough for directors, nor for employees. If job ads are anything to go by, ideal employees are creative extroverts with a burning passion. The youngsters of the labor market, millennials, crave constant feedback, refuse to bow down to authority, and seek a deeper meaning for their work – a mission. They don’t see why someone’s power should merely be based on formal position. What? You cannot motivate these people by shouting out orders from the top of the pyramid. And directors who are unable to motivate employees lack power. It’s high time we say our goodbyes to leadership based on giving orders, its Finnish specialty known as ‘Management by Perkele’. Since the rise of the steam engine, electricity, and electronics, we are now in the throes of a fourth industrial revolution, which merges the physical, biological, and digital realms. In the tumult of this revolution, work is no longer the same. Mäkelä mentions three major changes in the world of work that reshuffle power in corporate organizations: the loosening of ties between work and leisure time, work and the physical workplace, and work and employment relationships. “An increase in personal freedom causes corporate power structures to break down.” At the same time, the traditional pyramid model based on giving and receiving orders crumbles. “We are heading towards personal authority, which increases the role of expertise and social networks”, Mäkelä adds.

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How to control and manage when employees are no longer bound by employment contracts? Or when they no longer abide by working hours or a physical workplace? Organizational charts have already reacted to changes outlined by Mäkelä: they are lower and increasingly favor network-based, flexible cell organizations.

A couple of years ago, United Health Programs of America was accused of forcing employees to participate in prayer circles and say “I love you” to co-workers. The practice known as Onionhead encouraged employees to share personal issues with one another, thank God for their jobs, and read out spiritual texts. Employees who refused to adhere to the doctrine were fired. The consultant who first introduced the practice wanted to kindle a sense of warmth in a gloomy office atmosphere, marketing it as a “unique heart-based corporate culture”. After losing their jobs, some employees sued the company for discrimination.

he pyramid breaking down is evident also in corporate cultures. Now people are seen as holistic, fascinating characters rather than formal, dryish workers. Office dogs, a bar cart doing its rounds on a Friday, and co-workers taking part in a marathon together are all telltale signs. The Onionhead practice may sound ridiculous, but according to Pekka Mattila, drawing parallels between companies and cults isn’t quite as absurd as first meets the eye.

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“It’s always first about being brothers and sisters. Usually, the end result is a dictatorship led by one or two, disguised under a hippy pattern”, illustrates Mattila. Slipping towards a dictatorship can be explained by a shared, strong value system or mission that helps to tolerate discomfort. “Values bypass status.” In other words, a cult phenomenon requires a strong mission – a deeper meaning, which is what millennials are after in their work, too. Body Shop is a fine example of a genuine mission evolving to a successful business. “The Body Shop’s founder Anita Roddick was proud of the fact that her company’s first organizational chart wasn’t created until it employed over a thousand people. She didn’t have to face all the mess, which her workers tolerated thanks to the shared, strong value system.” The phenomenon is particularly evident in the health care sector and church as a workplace, where work communities may suffer, but it is stomached, as work feels rewarding and there’s a higher calling. Tech startups are increasingly scorned for their “bro culture” among sneaker-wearing, eternal young boys. Bro companies employ few women, as the mood is not only fun but often openly sexist. In the long run, also this shadow power structure is detrimental for a company.

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oes craving formal authority make me oldfashioned?” asks Elina Yrjölä, Key Account Director at Opteam, a Finnish staffing, recruiting and coaching company. Yrjölä appreciates the clarity that comes with formal power relations, so her craving isn’t only based on having less power in her current role than before. Her previous positions include business unit head and member of executive committee. She also ran her own company. “It’s interesting to notice this side in myself. I hope others identify their own power strivings, too.”

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Yrjölä readily admits to wanting a lot of power and to use it a great deal, too. “A lack of power is frustrating when something doesn’t go the way I want.” Experts at Aalto University do not see Yrjölä as old-fashioned. A company is after all a group of people seeking to achieve a joint goal, harboring “the entire human spectrum, in good and in bad”, as described by Kristiina Mäkelä, Vice-Dean for Teaching and Learning. Organizational charts, bureaucracy, and legislation have been created to curb the bad – otherwise companies end up in chaos. “Formal power creates a sense of fairness”, states Pekka Mattila from Aalto University executive Education. Equal treatment is more straightforward and reliable once it is formalized. Also owners need to be able to control their capital; very few would be ready to trust others with what they own without any control in place. “Formal power and structures form an organization’s foundation, if they are clear, transparent, and open”, summarizes Sari Kuusela.

Top management was recruited from outside to execute large-scale changes. One by one, the existing CEO annulled every single decision made by a new executive. He listened to people of his own age lower down in the company whom he had worked alongside and befriended over the decades. The new executives found the situation incredibly frustrating. Finally, a major purge was carried out, and several elderly employees were let go. The company was accused of ageism, but it was actually a case of dismissing people with hidden power to allow new winds to blow through the company.

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n a buddy organization of this type, directors need a great deal of maturity and integrity for

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“Clinging obsessively to formal authority is a Germanic and Anglo-American phenomenon.”

recovery to begin. A cleanse isn’t necessary if management gets a grip on leadership, but longstanding practices can be difficult to change”, analyzes Pekka Mattila. Situations of this type are inevitable when directors fail to use the authority that belongs to them. Authority does not exist if it isn’t used. “Trust is built over a long period of time, but can be lost in a matter of seconds”, adds Kuusela. Tricky shadow power structures also ensue when the organizational chart is adhered to scrupulously, pretending that a shadow organization doesn’t even exist. A big enough gap between reality and appearances creates cynicism. Take Soviet Union for example. “It’s a dream of a linear world that can be drawn on paper, but that’s not how it goes”, says Mattila. “Reality is never like the official organizational chart”,Vaara agrees. But there are cultural differences; in South Korea, for instance, power being in other hands than outlined in the organizational chart isn’t covered up in any way. “They can openly say that the papers have been signed, but it’s 80-year-old so and so who has the last word”, Mattila explains. The phenomenon also exists in European and Anglo-American cultures. A retired boss or predecessor may continue to pull the strings for some time, although usually hidden power during the transition period wanes pretty quickly. “Clinging obsessively to formal authority is a Germanic and Anglo-American phenomenon. It seems to be emphasized in countries where views on society and power are based on Max Weber’s

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Protestant Ethic and the Spirit of Capitalism”, Mattila notes. According to studies, the higher you climb in the organization and further east you go geographically, the more acceptable organizational politics become. “People without power usually think of it as more absolute than it actually is”, assesses Yrjölä. Emphasizing formal and frowning on informal power is evident in disputes that arise around new appointments. “Squabbles often arise when people fail to see social capital as a reason to appoint someone, yet networks and relationships can be crucial for the task.The old-fashioned Finnish way is to take out a ruler and measure who has the longest career. Already in Sweden and Denmark, social capital can be more of a valid reason for an appointment”, Mattila highlights. “Over here, networking can sometimes even be considered a bad thing”, Elina Yrjölä mentions. According to Mattila, this inclination is taken to the extreme in Finland, where “protestant ethics and undervaluing social skills collide”. In Mattila’s view, it’s rather easy to see why certain decisions have been made when you look at controversial appointments from the inside. “Sometimes it seems for the best of the person who wasn’t appointed.” Sometimes a person just doesn’t fit in even though he or she is formally competent. Vaara thinks that rationality is taken to the extreme in Finland due to its consensus-oriented social model and key role of a handful of large corporations.

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“They have had a central role and exercised a great deal of influence in our national business system”, says Vaara. As a result, companies have gained their fair share of informal political power.

In the 1900s, time and again large companies important for the Finnish economy had their way in terms of an advantageous monetary policy decision – devaluation. The decisions were often preceded with downright public lies, while behind closed doors, a small informal circle decided on a vital matter for the entire nation – exchange rates.

aara emphasizes that unified formality easily overlooks significant, genuine phenomena. Justifying decisions with figures forms a discourse that may create a rational impression, but: “also figures that look like facts can be based on guesswork and scenarios”.

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“Also science and leadership theories reflect an idealized picture of how things should be, while politics is often seen as emotive manipulation”, analyzes Vaara. Yes, emotions. A dirty word in Nordic economic and leadership traditions. “In the States, motivating employees by saying we’re doing this because it’s the right thing to do is much more common. Moral and ethical codes are important. Finns need a rational explanation”, says Kauppila. Another reason for emphasizing rationality is that leadership models are often based on a traditional process model from the manufacturing industry. “But it’s no longer how companies operate.You need friction in terms of alternative views that challenge and complement each other, but also loyalty in terms of willingness to move things forward”, Eero Vaara remarks. Sari Kuusela mentions that among like-minded

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S hadow power often lurks in the junction points of an organization, such as in the hands of a receptionist in the lobby.

rationality, a boss can get so comfortable that he or she forgets to ask what others think, which in turn puts a stop to a culture of conversation. In this sense, homogenous boards of companies pose a risk. When everyone agrees and comes from a similar background, power can intensify and strengthen – for a little while. “Power concentrating in an old boy network is a risk, as everyone thinks and talks the same. Of course it makes discussion is easy”,Vaara sniggers. Seeking a powerful position is often exhibited as selflessness, even sacrifice – in both politics and the corporate world. It is very rare to hear someone say they want to become a leader because they want power, despite the person wanting to make a difference. That takes power. Power clearly suffers from an image problem. While working on her doctorate, Sari Kuusela noticed that her interviewees didn’t want to admit they had any power at all. They would rather have talked about management and leadership. Playing it down may be explained by it still being a taboo, or the responsibility that always goes with power. Otherwise it would be a case of irresponsibility. “You could even say that without change, there’s no power. Power is always established on the possibility of change and future expectations. Leadership always aims for change”, says OlliPekka Kauppila. Eero Vaara assesses that the image problem associated with power could be related to the (Nordic) ideal of equality.

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“There’s power everywhere – among people of course, but it can also be deeper and more farreaching. For instance, technology and discourse have power. People can be prisoners to certain thinking”, asserts Vaara. He mentions forestry companies as an example of unified thinking: selling the same products and making similar deals. The same rings true for a number of other industries. That’s why constant questioning is paramount. People often instinctively think along the lines of: “Of course I question, but how about keeping it to myself to seal that promotion, pay rise, even a friendly Friday beer with my co-workers?” Conformity can temporarily increase power. “You have to constantly question whether the chosen line is the best one”,Vaara imposes.

“You’re in their country. Learn to speak their language”, stated Joan Holloway to Peggy Olsen, who had her sights on becoming a copywriter in the Mad Men television series. During the series, mother of all shadow power holders Joan Holloway climbed the ladder from secretary to one of the ad agency’s shareholders.

hadow power often lurks in the junction points of an organization, such as in the hands of a receptionist in the lobby, who sees the company’s entire spectrum. Middle management has a great deal of power due to its position between employees and upper management, passing or

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blocking information up or down. In Mad Men, Joan Holloway was a link between the company’s core activities – male advertising executives, and support functions – female secretaries. Other junction points exist between cells and teams. The fewer employees with links between two groups there are, the mightier their position of authority becomes. Although companies already recognize the importance of junction points, identifying employees who influence them is harder. According to studies, patterns of influencing are rarely in line with the organizational chart. Simply looking at roles and tasks makes it impossible to forecast who becomes an influencer, as a great deal depends on the person’s skills and how interested they are in networking and using shadow power. Research shows that whenever directors think they know who their company’s influencers are, they are usually wrong (for example Tapping the power of hidden influencers, McKinsey Quarterly March 2014). In an international company, connections and information routes can sprawl all over the globe like a spider’s web. If the company manages to identify the junction points, these can be formalized to harness power in a controlled manner. Finnish company Vaisala, which specializes in global measurement services, has made a conscious effort to pinpoint junction points, which it has equipped with teams to ensure the flow of information. This way the global leader in its sector improved communications both geographically and between different business areas.

“As of 1 August 2016, the organizational structure of Secto Automotive was overhauled to support growth targets and development initiatives. The renewal aims to boost activities and ensure smooth collaboration among different units, as Secto

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strengthens its position as a customer-centered service and process company.” (Press release of Secto Automotive, 7 September 2016)

ven change can take hold of power in a company. “If a company has a spring and fall organization, the performance of employees can no longer be assessed, as they are there for such a short time”, Mattila warns. Ongoing organizational reconstruction conditions employees, who are no longer willing to give their best, as they assume their roles will be changing soon anyway. That’s when change has taken power. Also an external change can take hold of power if given the chance, the company’s activities becoming reactive. “It’s easy to blame an external change for your own failure. Better to be active than merely react to change”, Olli-Pekka Kauppila explains. Power may accidentally slip outside of the company in a sudden case of economic or sectoral fluctuation, whereas stakeholders challenge a company’s power intentionally.Where a company was once a mighty monolith that informed surrounding society about its affairs, it is now a freefor-all. In spring 2017, Nordea’s Group Chief Executive Officer and president Casper von Koskull threatened to move its HQ from Sweden, if fees collected from banks in case of a banking crisis continue to rise. Sweden’s Minister of Finance Magdalena Andersson responded that the potential move could have its benefits for Sweden. Stakeholders who used to look up to a company’s position of authority now see themselves as equals, openly criticizing, pressurizing, and scorning the company on social media. Snarling from the top of the pyramid no longer works in this respect either, but instead companies need to throw themselves into the discussion,

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“Supervisors don’t step in when they know a person is hard to replace.The entire work community can be terrorized by a jackass who has managed to build an empire.”

which like other negotiations they can aim to steer in the desired direction. Power is after all as fast as quicksilver. A change of heart can be a difficult task for corporate management, which needs to perceive power and even the model of society in a completely new light.

At the end of the 1990s, longstanding Finnish manufacturing company Valmet decided to outsource the maintenance services of its Pansio factory. Electricians with a strong sense of belonging to Valmet found the thought of working for an electricity company a shock, but their professional pride soon returned when they realized they were now part of their new employer’s core activities. Having previously worked on the paper machine factory’s side lines, they were now sent out to solve challenging problems at different sites.

ften hidden power is only revealed when a sudden change occurs, such as a company being bought or sold, or during a merger. “Who has power is a key concern in a merger. A director of a new unit coming from the other firm means only some subordinates are familiar with the director’s leadership style”, describes Kuusela. Shadow power activities increase in situations where some feel under threat.

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In her book Organisaatioelämää – kulttuurin voima ja vaikutus (engl. transl. Organizational life – the power and impact of culture), Sari Kuusela reflects on how ingrained a learned operating method can be in an old organization. A new director may reveal it simply by being different. Changes also prove the power of knowledge – something employees are rarely willing to admit. “What you know allows you to shine when it sheds a positive light. But who would admit to using knowledge to advance their own agenda?” Mattila states that quite logically an organization should seek the best possible operating models for changes that cause groups and territories to break up. “But these situations also foster games and opportunism.” It can even take a decade for the organization to fall into place following a merger, providing plenty of time for power struggles. One can only guess how much cash flow suffers from scheming that gets out of hand. Outsourcing doesn’t simply mean less power for the people it affects or the outsourcing company, even if that is often the first thought. The business idea of Yrjölä’s current employer Opteam is largely based on the shift in the world of work and changing work methods: providing personnel for other companies. In her own former company, she sold outsourcing as well as temporary, rental work, using power as one of her selling arguments.

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“Employees who feel undervalued will only do what’s necessary, whereas a strong sense of fairness motivates to excel.”

According to Elina Yrjölä, she used power as one of her arguments when she promoted her old company’s solutions. “Outsourcing clarifies and increases power because the relationship between a client and service provider is different from the relationship between a superior and subordinate in the organization. When buyers or clients manage an outsourced service, they deal with a serviceminded contact person, who is keen to keep the service going and thus fullfills their needs. The superior, on the other hand, deals with employees who have various motives, including change resistance. In other words, when done well, outsourcing translates as an efficient use of power”, Yrjölä explains, although she admits reality is sometimes different. “Sometimes it’s a case of a bad commission and confusing contract. The tail can end up wagging the dog.” Outsourcing activities requires that power remains balanced and the scales do not tip either way.

The Danish government decided to relocate its offices and 3,900 government officials to the provinces by 2020. Only five per cent of the engineers affected by the change say they will be leaving Copenhagen after their jobs. 75 per cent of lawyers and economists will stay behind. While professionals are quick to find new employment, the transition will be painful for government administration with most key personnel resigning and key knowledge disappearing along with them. Now plans for

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bonuses and other incentives are suggested to entice professionals to stay even for the transition period.

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mployees are stripped from a great deal of power when they succumb to the right of an employer to direct them. After all, an employment relationship is a continuous negotiation over power”, Elina Yrjölä states. Yet employees have plenty of power, despite being masters at downplaying this fact, as Kuusela says. A specialist skill is one example of employee power. “It can be used classically to blackmail”, says Mattila. “Supervisors don’t step in when they know a person is hard to replace.The entire work community can be terrorized by a jackass who has managed to build an empire.” A power-hungry employee can take on the role of the work community’s orator. “Usually colleagues are fine with this, as they don’t need to voice views or put in the extra effort.” Another way for employees to gain power is to tie contacts with those above their immediate boss. “It makes the immediate supervisor’s work extremely hard, as there’s always a boss or two higher up who will say ‘let’s leave it’.” Power is always connected with resistance. According to Sari Kuusela, passive resistance is the most popular form of expert power when the expert doesn’t want to do something. “It can even take the form of keeping quiet – not getting up in a team to say you disagree.” Also pro-

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crastinating and not dealing with things is a common method. In an expert organization, territorial thinking spreads quickly, which involves withholding information to secure one’s own area. “Especially situations of change show that knowledge really is power”, says Kuusela. When Elina Yrjölä is asked how subordinates use power, she answers: “For example by crying”. Tears at work are sometimes fine, but as a regular reaction, it’s a question of using power. “Crying and other unexpected emotional reactions like throwing a fit, being nasty, and yelling are types of power use. When someone is in an irrational state, it is more difficult for the supervisor to use normal authority.” Efficient, but not exactly sustainable ways to use power.

ut how can employees put power to good use? Similarly to how leaders use it well. Good leaders take hold of the power that belongs to them and use it fairly. “Manipulation brings power, but it won’t necessarily last. Charisma can arise from your own ego, but is much more productive when it stems from humility and helping others”, highlights Assistant Professor Kauppila. Charisma is particularly important in organizations of independent cells. For employees, a positive use of power could be about viewing the big picture and perhaps going somewhat beyond one’s role to help. Traditionally, social sciences have focused on researching the negative sides of power; how to keep excessive power strivings and Machiavellian sneakiness in check. But organizational research also concentrates on its positive uses. “How much do you help others? What’s your contribution? The more value you bring, the more power you have”, outlines Kristiina Mäkelä. According to Sari Kuusela, everyday activities

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have a huge effect on power at the workplace. Whether directors greet employees in the mornings and come over for a chat makes a difference. “Daily life counts. Employees who feel undervalued will only do what’s necessary, whereas a strong sense of fairness motivates to excel”, says Kuusela. Chatting with employees also makes strategic sense for directors, who gain information about the organization at the same time. A director who relies on communication from managers below will most probably get a censured version. The more directors observe the organization directly, the better they can lead. If interested in leadership, experts at Aalto University recommend delving into humanities and social sciences as good soil for heightened awareness among those with prior studies in economics or natural sciences. Good directors understand that power affects them as individuals. “Power does affect you. Because of this feeling of empowerment, powerful people can find it hard to see why people don’t just get a grip and sort themselves out”, says Yrjölä. In addition to formal power attached to a leadership position, you can for example feel empowered when everyone laughs at your jokes. It could be that you are a very funny person but people also tend to try to please their superiors. This turns some into bullies. “Right at the start of their careers, people should be taught how to get along and build social capital”, comments Mattila. A quick wit, good interaction skills, sensibility, and seeing the needs of others help along the way. Social capital is something you can increase. “The measure of human beings is how they treat someone with nothing to give, like my old supervisor used to say”, says Yrjölä. In other words, all-around good behavior is the most beneficial way to use power that exists. ◆ This article in Finnish online: www.aaltoee.fi/blog

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Y L O TO I N U T N O IV F E V R I SI E W T

P OW E R I S E A R N E D, N OT G I V E N O R TA K E N

“Knowledge is still power, but so is sharing of it”, states Riitta Lumme-Tuomala. Riitta Lumme-Tuomala serves as Head of Growth and Director, Russia and Talent Management, at Aalto University Executive Education. Read more about her dissertation “Talent Management in the Humanitarian Aid Industry”.

Power can be held in the smallest of things. – Gandalf the Grey, Lord of the Rings Trilogy As this article “Shadow Play” indicates, some of the significant signs of our times, social capital, networking, and expertise, are playing an important role in today’s organizations along with power. Power can be formal and informal, visible and hidden, positive or negative. The experts in the article point to many directions when discussing power. The viewpoints are fascinating and thought provoking. And I totally concur. The connections between power and organizational structures on one hand, and power and authority on the other, are particularly interesting. Formal authority does not automatically mean power in our era, and organizational structures do not illustrate the power hubs that lurk outside the neatly drawn rectangles of an organigram. Actual power is earned, not given or taken. Power does not habit in structures or linear processes either, the employees of this VUCA (volatile, uncertain, complex, and ambiguous) era of ours, want autonomy, personal freedom and leadership built on trust and a positive example to follow. That kind of power resides in relationships, i.e. social activity between individuals, as Professor Kristiina Mäkelä of Aalto University states. Knowledge is still power, but so is sharing of it. I firmly believe that clinging to one’s knowledge, cultivating it only in one’s own head, gives a false sense of power to the individual. An individual’s value to the organization lies very much in his or her ability to share knowledge and cultivate and develop it further with others. Additionally, we should all have the will-

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ingness to allow knowledge to crash into different knowledge, which in turn results in totally new kinds of knowledge. In other words, we need to engender knowledge accidents in the organization! These accidents do not happen if the power structures in the organization prevent employees from using their expertise and networks for sharing. The Finnish way of belittling the importance of networks and relationships, as Dr. Mattila mentions, is possibly based on the deep-rooted suspicion of us Finns towards networks of powered people, clubs of like-minded, experienced society and business influencers exchanging ideas and sharing, yes, power. Yet we all have learned that joy is doubled when shared. Does this mean, that power in our minds is not a joy, but a negative burden that cannot be shared? How you use power and share knowledge defines your net value to the organization. You are exactly as valuable to the organization, as a leader or as an employee in general, as are your own competence, commitment and contribution added with your ability to help others to excel. Mind you, your net value can be negative, too. As Kristiina Mäkelä says, the more value you bring, the more power you have. Power and empowerment walk hand in hand with a meaningful and plausible purpose, and organizational values that resonate with the employees. An employee building a church instead of just piling tiles, has a lot of power based on autonomy within the framework of a mission and values that really work as checkpoints when in doubt. That power is not formal nor based on a position and title, but on trust, respect, and consistent leadership and support.

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BOOK 3 [ E S S AY ]

THE HERETIC

Nobody likes an outsider giving unsolicited advice. So what happens when a Nordic immigrant steps into the middle of a partisan war over Americaâ&#x20AC;&#x2122;s future? Journalist and writer Anu Partanen knows the answer, and writes about it.

he Wall Street Journal reviewer was not impressed. In his reading, I was a rather hysterical woman, one who likes to cherry-pick facts and write terrible, melodramatic prose, while praising a nation that collects just a little less in taxes than Cuba. My book was “allergic to nuance”, and I myself was in need of Xanax, prone to hyperventilating, and likely to ignore any inconvenient facts that didn’t support my view. The editors of the paper had titled the review “Stockholm Syndrome” and illustrated it with a photo of members of a Swedish left-wing party marching on May Day, waving their red flags in the air. You might think I had written a book praising socialism, or communism, or whatever you might want to call it, or perhaps a book expressing the views of a raging far-left feminist, or maybe a work in some new genre of red brigade chick lit – the kinds of things that would surely raise the ire of opinion writers at a newspaper like the Wall Street Journal. But as far as I knew, I had done nothing of the sort. In fact, as far as I knew, I had written a fairly straightforward nonfiction book about the differences in ordinary people’s lives in the United States and the Nordic nations, and detailing how the Nordic countries support the freedom of their citizens, their businesses, and their markets. I had interviewed families and experts in several countries, waded through hundreds of academic studies, and weaved it all together with my own experiences of living and working in the United States and in Finland. I thought I had gone out of my way to provide evidence and arguments that demonstrated that the Nordic nations are capitalist – not socialist – countries, and to praise the quest for individual freedom, equality of opportunity, and a high quality of life for all countries. The book included chapters on family policies, education, health care, entrepreneurship, success, and happiness. I had interviewed representatives of highly profitable companies, such as Denmark’s pharmaceutical gi-

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ant Novo Nordisk, Finland’s mobile game phenomenon Supercell, and Sweden’s fashion trendsetter Acne. I had talked to economists, including Finnish MIT professor Bengt Holmstöm, who went on to receive the Nobel Prize in economics a few months after my book was published. And I had studied it all through the lens of how capitalist countries can use smart policies to support everyone’s ability to fulfill their potential and become independent, self-supporting citizens. Of course, I had also suggested that the United States might be able to learn something in this regard from the Nordic nations. Naturally, one cannot argue with opinions. If the reviewer thought my writing was terrible and my case flawed, he had every right to say so. Still, I was surprised by his fierce scorn, and by the fact that he found absolutely nothing worth contemplating in the book’s arguments even though the book came out in the United States in the summer of 2016, a few months before the American presidential election, when the whole country was in an uproar over exactly the issues I was tackling in the book. Millions of Americans seemed to be in favor of many of the solutions I had put forward. The newspaper itself had deemed the book worthy of a fairly long review even though I was a completely unknown writer at the time, and no other major publication had picked it up yet. But in the end, I really shouldn’t have been surprised. All is fair in love and war, and preemptive strikes are mode du jour.

hen it comes to Nordic and American approaches to life and society, battle lines quickly get drawn. For many conservative Americans, Nordic countries are examples of socialist “nanny-states”, where people have given up all individual agency and freedom in favor of mediocrity and safety. Everyone has to hand over their earnings to the government in sky-high taxes, and regulations and intense social control suffocate all

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ALL PHOTOS FROM THE EVENTS BY TREVOR CORSON. AUTHOR HEADSHOT BY KRISTIINA WILSON.

entrepreneurialism and individualism. The only reason it hasn’t all collapsed yet is that the Nordics are homogeneous – white, Lutheran, essentially a one big family – and they maintain both strong protestant work ethic and are dedicated to altruism and meekness. Where any cultural or ethnic diversity has managed to seep into a Nordic society, it follows, a disaster is looming, since in a diverse society no one would agree to give away their hard-earned cash to benefit people perceived to belong to another group. In any case, the Nordic economies are headed slowly but surely towards a complete collapse, the reasoning goes. On top of this, as the Wall Street Journal reviewer noted, Nordics have the audacity to be unbearably arrogant, dispensing unsolicited advice and judgment to people from other countries as if they themselves are the only impeccably good people on earth, even though they in fact show a strong racist streak. According to this line of thinking, the United States is, or should be, the opposite. In America, everyone has the same opportunities to succeed, it is said, but it is up to the individual to make something of themselves. If you are not willing to work, no one has the duty to provide for you. If you succeed, no one has the right to demand that you share the wealth. Government and taxes should be kept to a minimum, since free markets will always produce the best results. To those adhering to this view, any suggestion that Nordics or other Europeans, not to mention Canadians, might be doing something right is nothing short of a declaration of war. The animosity is often mutual. Nordics, as well as Europeans at large, are fond of criticizing Americans, too. The United States is seen as an arrogant bully that leaves its poor to fend for themselves and shamelessly advances its interests around the globe with no regard for those who bear the cost. The gulf between Americans who are on the conservative or libertarian end of the spectrum on the one hand, and mainstream Nor-

Anu Partanen traveled around the United States on her book tour. A bookstore in Maine had set up a Nordic-themed centerpiece in anticipation of her talk. Cali fornia stretch of the tour took her to San Francisco.

dic thinking on the other, exemplifies the global gap between those who believe that government is always the enemy of freedom, and those who believe that government can play a crucial role in improving life for all in a free society. It’s a divide that seems increasingly hard to cross. Overcoming such divisions, and expanding our views of what has been shown to work, was what I wanted to do with my book.Yet there I was, just a week after my book had been printed and arrived in American stores, holding the Wall Street Journal’s eviscerating review in my hands. Had I failed miserably right out the gate?

’d moved to the United States in 2008 after meeting an American man who would later become my husband. Until then I had lived and worked as a journalist in Finland, the country in which I was born. I immediately fell in love with many aspects of American life: the friendliness and generosity of the people, the diversity and energy of New York City, the head-dizzying levels of excellence and achievement in every field of human pursuit imaginable. But to my surprise I also found that the United States, so famous for being “the land of the free”, did not in fact seem to give people more freedom than what I had experienced back home in Finland. In fact, the fate of people in America seemed much more tied to their family’s resources and the luck of their circumstances. Most wealthy countries in this day and age have seen the benefits of creating some basic, universal, government-run or subsidized systems for ensuring that all citizens have access to certain essential social services and benefits.These include good education, decent health care, paid parental leaves, affordable day care, and reasonable retirement payments. In the United States, securing such services and benefits is largely left to the individuals themselves. As a consequence, in today’s America, children whose parents have the skills and wealth to provide them with good health care, day care, education, books, diet, and

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everything else a child needs to succeed later in life have all the opportunities in the world. Those who don’t are simply left behind. I was surprised in the United States how old-fashioned gender relations seemed compared with what I was used to in Finland, and in America everyone seemed much more beholden to their employers than the Nordics I knew. American entrepreneurs and employers, on the other hand, were burdened by the expectation that they fund and arrange expensive social services, such as health care, not only for themselves and their families but also for their employees. All this went against everything I had thought I knew about the United States as a country that champions small businesses, individual freedom, and true meritocracy. Around the same time, international comparisons were released in a steady stream, looking at areas of life such as education, well-being, gender equality, work-life balance, and even happiness. In most of these studies, Nordic countries led the world. The United States did not fare so well. Surely, there was something there for me to write about.

fter The Nordic Theory of Everything: In Search of a Better Life was published, I embarked on a shoestring book tour to give talks at as many bookstores and other venues around the United States as my small personal budget would allow. I met with audiences in New York City and Washington, D.C., in Massachusetts, Minnesota, Maine, California, Oregon, and Washington state. Friends, family, and complete strangers opened their homes to me and let me sleep on their floors and in their guest rooms. Bookstores, universities, libraries, think tanks, local organizations, and private citizens hosted me for talks. I had done my best to write a book that would be easy to read for anyone interested in improving their society, and in comparing life in different countries, whatever their political leanings might be. I didn’t think I was embracing partisan views,

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Nordic countries led the world, the US did not fare so well. Surely, there was something there for me to write about.

Clockwise from left: Partanen speaking at a bookstore in Berkeley, California; in discussion with journalist Liza Mundy at an event in New York City; a bookstore talk in Seattle; in Pasadena; on the road in California.

I had written the book in the hopes of reaching ordinary people struggling with their lives or otherwise looking for change.

The legendary bookstore Politics and Prose in Washington D.C. was packed. Below: Partanen in Pasadena, CA, before an event.

but I did know I was wading into an impassioned battle over America’s soul. America’s 2016 presidential election had pitched a self-declared “socialist,”Vermont’s senator Bernie Sanders, against a self-declared savior of the working class, real-estate scion and reality-TV celebrity Donald Trump. Hillary Clinton may have won the Democratic nomination and the national popular vote, but it was Trump and Sanders who captured the public’s imagination with their conflicting visions for America. The background for both of their successes was really no mystery. For a long time, the United States indisputably led the world in most areas of life, in business and science, in material wealth and opportunity – at least for its white residents – and its middle class was the wealthiest of all. But over recent decades, the U.S. had regressed, while other countries had progressed and even surpassed America by many measures. Understandably, Americans yearned for change. Rising income inequality, falling middle class wages, increasing health care and college costs, failing public schools, expensive day care, and a work culture hostile to family life were fueling anxiety that fed the support for both Sanders and Trump. Their supporters agreed about the problems, but drew the opposite conclusions about the solutions. Trump supporters assumed stopping free trade, deporting immigrants, and dismantling regulations would bring jobs and prosperity back to them. Sanders supporters were in favor of creating what they saw as Nordic-style universal social policies to help everyone navigate the new world. I didn’t think Sanders and his supporters had the terminology quite right – as I’ve said, “socialist” isn’t a term that accurately describes the capitalist Nordic countries today – but they were onto something, and in fact, they were riding a wave of interest in things Nordic that had been building in the U.S. for a while. Superficially this could be seen in the popularity in hip American cities of

Nordic TV shows, design, food, and other entertainment and lifestyle trends. Brands such as Ikea, H&M, Fjällräven, Lego, Skype, Spotify, Angry Birds, and Minecraft were molding the image of Nordics as modern, successful, cool, and tech savvy, and the numerous Icelandic, Swedish and Danish dairy products, restaurants, and coffee shops popping up in America’s mostly-liberal cities were bolstering that idea. But more profoundly, the popularity of the Nordic way in the United States could be seen in the growing phenomenon of Americans looking to the Nordics for solutions to social problems. In my book, I argue that all countries today have to provide their citizens with some basic social services in order to build strong free-market economies that can succeed in the twenty-first century. Using the government to provide people with the education they need to get a job, the parental leaves and day care they need to hold on to that job, and the health care they need to stay healthy is not socialism. It’s supporting capitalism, and in doing so, the government gives everyone more individual liberty while ensuring that the nation utilizes all its people’s talents, and creates a healthy and thriving economy. Nordic countries are an example of such a strategy, and while Nordics gripe about this or that as citizens everywhere do, overall the results speak for themselves. In the Nordic countries, a bigger part of the working-age population tends to be actually employed than in the United States, populations are healthier, outcomes in education are in many ways better (especially in Finland), and governments are more efficient. Nordics have their own problems, for sure, but studies have shown that today it is the Nordics who enjoy a higher quality of life and more opportunities than most Americans. In many countries, the idea of using government to provide important social services is not particularly radical. In the United States, it can be. Yet it turned out that many Americans felt quite

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differently about my book’s ideas than the Wall Street Journal did.

had written the book in the hopes of reaching ordinary people struggling with their lives or otherwise looking for change, and on my book tour, I discovered that to a surprising degree I had attained that goal. Audiences at the events consisted of all kinds of people: men and women, young and old, students, professionals, and stay-athome moms. Almost always there were overflow crowds. The reviews that started rolling in were also overall much more positive than the Wall Street Journal’s review had been, showcasing the American divide. The New York Times deemed me a “careful, judicious writer” who makes “a careful, judicious case”, the Seattle Times called the book a possible “game-changer”, and Foreign Affairs thought the book should be “required reading for those who wonder why so many Americans feel resentful and alienated”. Luminaries in Silicon Valley took to their social media accounts to share articles I wrote for the American media on the book’s themes, and CEOs and business owners wrote to me to thank me for the book. While the traditional conservatives of the American business community might still abhor anything involving government (except when their own industry is in need of public subsidies, of course), those working in industries that employ and count as their customers, high-skilled Millennials, tend to support efforts to improve access to good public education and affordable college, and even to universal health care or basic income.Young, educated Americans – the Americans that tech companies are after – had been the most ardent supporters of Bernie Sanders, after all. American Millennials are less religious and much more likely to vote Democratic than older generations, and they believe in a more activist government providing more services. At the same time, Silicon Valley has realized that technology and robots will render many jobs obsolete, disrupt

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the paradigm of steady employment, and require workers and consumers to have more skills. Leaving most people behind is not in anyone’s interest, and all countries need new solutions to the problem of supporting communities as the job market changes. Nordic entrepreneurs and businesses have their complaints about the Nordic model, with its taxes and protections for workers, but in America having the government provide health care for all, for example, freeing companies or entrepreneurs from this burden, could be an improvement. Similarly, the Finnish government’s ongoing universal basic income experiment has garnered much attention among both American libertarians and the so-called socialists. Whenever I gave a talk, in Q & A session audience members tended to be strongly in favor of Nordic-style social policies but peppered me with questions reflecting American concerns: Would the populist movements in Europe destroy the social progress made there? (In the U.S., the Tea Party has worked to dismantle regulations and government services.) How do Nordics deal with homelessness and drug addiction? (Both are wrenching social issues facing America today, visible around the country.) What is the role of worker’s unions in all this? (Union membership in the United States has plummeted, and conservative politicians have done their best to diminish collective bargaining rights.) What are campaign funding laws like in the Nordic countries? (Individual billionaires, unions, corporations, and other interest groups routinely spend hundreds of millions of dollars to support political campaigns in the U.S. in order to influence elections and buy access to politicians, which is widely seen as one of the biggest obstacles to creating government policies that benefit ordinary people.) Can you discount the effects of religion? (Religious beliefs tend to influence American voters’

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and politicians’ views on social issues much more than in Europe.) I did my best to answer these questions, and I always left the events feeling elated. Despite the European stereotypes of Americans as people who are not able to find European capitals on a map, I have found the opposite to be true: big swaths of Americans are much more interested in the outside world than I find many Finns to be, and much more interested in the European approach to basic social policies than one might think.

nd how about Finland, my self-esteem-deprived, often gloomy country of origin, the virtues of which I praised in the book? I fully expected the book to be received even more harshly in Finland than in the United States. Americans may dislike others pointing out their shortcomings, but Finns dislike anyone trying to point out their achievements. While I was working on the book, Finnish friends and acquaintances worried it was taking me too long. They kept inquiring how far along the book was and encouraging me to get it out as quickly as possible, because they were concerned that I would lose the tiny window of opportunity to entice anyone’s interest in it. So sure were they that any attention and praise Finland might have received abroad because of its success in international surveys on education, gender equality, or general quality of life was based on erroneous studies that would soon be proved wrong. Finns continue to perceive Finland as the poor and backwards country that it used to be several decades ago, and no matter how much evidence accumulates showing that this is no longer the case, they still assume things will only get worse. My Finnish friends, a bit like that Wall Street Journal reviewer in fact, seemed to suspect that I was perpetrating a kind of international con, trying to grab my share of profits from all these fake news about Finland’s virtues.They urged me to get it done quickly, since the whole trend

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Americans are much more interested in the outside world than I find many Finns to be.

Clockwise from left: New America Foundation, an influential progressive think tank arranged an event for The Nordic Theory of Everything in New York City; entering Maine; Belfast, Me.

would soon be exposed as a fraud. To me, their distrust in Finland’s achievements showed how remarkably unaware Finns can be of the hardships of life in other countries, and how successful their own society is by comparison, even with all its faults. But I could also see that their skepticism rose from real problems. Finland has been suffering from a prolonged economic downturn, and the current government’s inconsistent and poorly argued approach to reforms has left many Finns worried about their country’s future. I share their concern.Yet an intriguing paradox is evident here: it can be difficult to perceive and appreciate the strengths of one’s own society from the inside, and if one fails to see and understand those strengths, it is also easy to forget that those strengths need to be actively protected and nurtured. The risk arises that the progress made may then be reversed. Just look at America. As I’ve followed the Finnish government’s recent efforts to cut public funding for education and other services benefiting children and families, as well as outsource big parts of the health care system – as part of a hastily concocted reform plan that is opposed by practically all experts – I’ve felt a chill. The consequences of America’s insistence on private arrangements instead of public programs for all services illustrate many of the problems that typically go with trying to force free-market logic onto basic social services where that logic does not apply. I have truly hoped that my book could also contribute to Finland’s own conversation about where it’s headed as a country, because the mess that the United States finds itself in today reveals all too starkly that buying education or health care is not like buying jeans. What America shows us is that trusting the market to provide the poor with reasonably priced, decent housing, or anyone with reasonably priced day care, for example, is an exercise in naiveté. Cutting costs in the shortterm can result in much bigger and more profound costs in the long-term.

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This is not to say that Finland can’t improve. I would like to see Finns become more outgoing, open-minded, polite, positive, ambitious, enterprising, and supportive of diversity and of variety in life choices, and there are many aspects of Finnish society that should be reformed. For example, I believe Finland should do even more to equalize social benefits between self-employed and salaried workers, and make it even easier for businesses to hire and fire employees or for individuals to hire each other, while at the same time ensuring basic security for everyone. Access to primary health care should be made faster and more equal. Both employers and employees should focus more on achieving goals together instead of viewing each other as enemies. Men should be encouraged to take more parental leaves. And men and women both should be encouraged to break out of the trenches of the industries in Finland that remain highly gendered. But regardless of these issues, it seems to me obvious, and proven beyond a doubt, that as far as the general state of affairs in the world goes, Finland is in fact a country that functions remarkably well.That Finns themselves find it hard to believe this makes it no less true.

s for the reception of my book in Finland, as far as I’ve been able to tell, Finns have been mostly supportive of my efforts, but much less likely to engage in a real conversation about the book’s ideas than the Americans I encounter. Finns I have met have usually congratulated me enthusiastically on the book’s success but steered clear of commenting on its contents. Finland’s president invited me to the annual Independence Day Reception, an honor in Finland, and when the book’s Finnish edition was published in the beginning of this year, the Finnish media interviewed me about the recent political developments in the United States.The book appeared on bestseller lists at Finnish bookstores, but still I’ve felt the silence out of Finland to be almost deafen-

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ing compared to the American response.Very few emails from Finnish readers have come in, whether positive or negative. The few negative comments that have reached me have mostly expressed the suspicion that I must be an unusually simple or weak person, since I don’t seem to be able to manage life in the American system – as it surely can’t be as complicated as I claim. Or they’ve thought that my view of Finnish life was much too positive. Perhaps Finns felt the book was written for Americans, or perhaps they found it boring since they don’t struggle with the issues the book describes the way Americans do. Perhaps the conversational culture in Finland is too different from the American one, and perhaps the Finnish silence filled my ears because after so many years in the United States, I have gotten used to the energetic way Americans engage in discussion, even with people they’ve never met. Perhaps I already find myself in the position of a foreigner to Finland, trying to decipher what is happening behind the sphinx that is the Finnish face, unnerved by the perceived lack of energy or response compared to the expressiveness of the Americans who now surround me. Perhaps by Finnish standards the book has in fact stirred quite a bit of publicity and discussion, but I, having become part American, can no longer see it. What I can see is this: no country is of one mind, and no nation should close its eyes or borders to the rest of the world. The world is changing, and all countries have to change with it. Conversation and learning from others are the best ways to go about this. After all, what better strategy than avoiding the mistakes others have already made, and reaping the rewards of solutions others have already tested? And if someone who is not interested in that conversation tells you to pop a Xanax and head back home to wherever you came from, don’t worry.There are plenty of conversationalists in the sea. ◆

The mess that the United States finds itself in today reveals all too starkly that buying education or health care is not like buying jeans.

Lincoln Memorial in Washington D. C. with a view toward the Washington Monument.

PHOTO KRISTIINA WILSON

A B O U T A N U PA RTA N E N

“Most of us actually have no idea what life is really like elsewhere until we start to try to build a life for ourselves in another country.”

Parempaa elämää etsimässä” in January 2017. British, Korean, Taiwanese, and Turkish editions are forthcoming. Partanen studied in Tampere University, and holds a Master’s degree in Social Sciences.

Anu Partanen, 42, is the author of “The Nordic Theory of Everything: In Search of a Better Life.” She is a journalist originally from Finland, now based in New York City. She has lived in the United States since 2008, and her work has appeared in the New York Times and The Atlantic. She is a regular commentator on the BBC’s radio program Business Matters, where she discusses global business news, and she has worked at Fortune Magazine as a visiting reporter through the Innovation Journalism Fellowship at Stanford University. In Finland she has held many positions ranging from managing editor to columnist, features writer to news reporter, lecturer to on-air commentator. Her book “The Nordic Theory of Everything: In Search of a Better Life” was published in the United States in June 2016, and in Finland as “Pohjoinen teoria kaikesta:

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Anu Partanen, why did you want to write a book about the Nordic model? “It’s easy to think that we know what life is like in other countries since we travel the world and read global news online, but after moving to the United States I realized most of us actually have no idea what life is really like elsewhere until we start to try to build a life for ourselves in another country.” “Accurate knowledge about other countries’ problems and solutions can be immensely valuable. In global comparisons the Nordic model has in many ways proven to be an extraordinary success, and writing the book was a way for me to share what I have learned living in a Nordic country and in the United States, and to participate in the international conversation about what kinds of solutions might help countries around the world to face the challenges of globalization and technological change.”

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BOOK 4 [ LEADERSHIP ]

MAKE THEM LISTEN

A powerful speech has a simple recipe: it has to be true. That’s the tip of top speechwriter Sarah Hurwitz, who shares some lessons in an interview with Aalto Leaders’ Insight. Words Ville Blåfield.

t’s Saturday, 7 June 2008. Wearing a black blazer and white string of pearls around her neck, senator Hillary Rodham Clinton stands in front of a vast, roaring crowd outside the National Building Museum in Washington, D.C. It’s time to admit defeat. Against all odds, Barack Obama, a young senator from Illinois, has risen as the Democratic nominee for President. The dream of America’s first female president won’t be turning into reality quite yet. “Well, this isn’t exactly the party I’d planned, but I sure like the company”, Rodham Clinton begins her speech. “Although we weren’t able to shatter that highest, hardest glass ceiling this time, thanks to you, it’s got about 18 million cracks in it.” The audience bursts into applause, shouting, cheering. Rodham Clinton pauses for a moment before continuing: “And the light is shining through like never before, filling us all with the hope and the sure knowledge that the path will be a little easier next time.” The power of words. The right sentence in the right part of the speech, uttered to the right audience, presented in the right way results in tears and masses turning up. Rodham Clinton’s “18 million cracks” referred to the 18 million votes in pre-elections. In the minds of supporters disappointed with the loss, the connotation was moving and empowering: in this slow battle for equality between men and women, in shattering the glass ceiling, this campaign played a key part despite ending in loss. “That highest, hardest glass ceiling” will be easier to shatter next time, thanks to you. It was Sarah Hurwitz who was behind the words. As soon as Rodham Clinton’s campaign ended, she was hired by Team Obama as Michelle Obama’s speechwriter. Barack Obama’s aide and speechwriter Jon Fabreau knew Harvard law graduate Hurwitz from four years back from John Kerry’s presidential

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WHITE HOUSE PHOTO BY CHUCK KENNEDY

Speechwriter Sarah Hurwitz with Michelle Obama.

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“What is the deepest and most important truth I can tell at this particular moment?”

campaign. Her first assignment for the Obama campaign was to write Michelle Obama’s first major speech to introduce her husband at the Democratic National Convention. Hurwitz later told the Washington Post that she was nervous about first meeting Michelle Obama: how would she be received after being the go-to speechwriter for the competing team just moments before? But the fears were unfounded, and Michelle Obama and Sarah Hurwitz hit it off from word go. “She clearly said to me: ‘Okay, this is who I am. This is where I come from. This is my family. These are my values, and this is what I want to talk about at the convention’”, Hurwitz subsequently reminisced in the Washington Post article. “I realized then that Michelle Obama knows who she is, and she always knows what she wants to say.” Uncovering Michelle Obama’s voice was a key factor in the success of the pair’s collaboration for many years to come. Hurwitz managed to hear and internalize Michelle Obama’s authentic, unique voice and tone for carrying her message: the Michelle Obama truth. That’s Sarah Hurwitz’s first lesson to the readers of Aalto Leaders’ Insight.

s Barack and Michelle Obama became the presidential couple in 2008, Sarah Hurwitz became the first lady’s head speechwriter. She worked at the White House for the Obamas’ entire eight-year term. She now gives lectures on speechwriting all over the world, visiting Finland in June as a guest speaker at the ‘summer school of rhetoric’ seminar in Hämeenlinna. Aalto Leaders’ Insight asked Hurwitz what ele-

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ments make a speech powerful, and whether there is a lesson we can all learn from the greatest speeches, speakers, and speechwriters in history. “I think great speeches generally tell deep and important truths”, Hurwitz begins. “I always advise people that the first question they should ask when writing a speech is not ‘What will make me sound smart, or powerful, or funny?’ or ’What does the audience want to hear?’ but ’What is the deepest and most important truth I can tell at this particular moment?’” Truth also leads to finding your own voice. A powerful speech looks and sounds like the speaker – regardless of whether it was written by a multi-member team, the audience needs to believe the speaker stands behind it. “It’s important to talk in your natural, authentic voice”, Hurwitz says. “Often when people get behind the podium, they speak in this very formal, stilted way, and it sounds fake.” Hurwitz has a handy way of testing how authentic a speech sounds: “If you would not feel comfortable speaking this way to your friend, or spouse, or colleague, you shouldn’t speak this way to an audience of many people either.”

ow does a speechwriter uncover someone else’s voice? You can easily apply Hurwitz’s test to your own speech, but how do you know what is natural and true for another person? People who have worked with Hurwitz say her method is simple: she listens. “It’s not that complicated”, her former colleague Jon Lovett tells Washington Post. “Sarah is very talented. She’s very good at helping the first

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lady find a more substantive and personal way of talking about issues.There are people that are just really well suited to write for somebody and it’s a really good match.” Yet clever speechwriting involves a rather deep symbiosis. “It is not simply capturing the person’s voice because that alone would be mimicry”, claims Robert Schleringer in his book White House Ghosts: Presidents and Their Speechwriters. “It is not simply capturing the person’s voice but knowing them well enough to figure out how their mind works.”

t’s Monday, 25 July 2016. Democrats have congregated for their historical National Convention at the Wells Fargo Center in Philadelphia. One of the last remaining glass ceilings is shattered when for the first time the party nominates a woman as a presidential candidate – Hillary Clinton, who by now has dropped Rodham from her name. Outgoing first lady Michelle Obama is the key speaker on the Democratic Convention’s first day. She goes on to give a speech that becomes one of Sarah Hurwitz’s most renowned to date. The speech resonates eight years of Obama and Hurwitz working together – and a deeply ingrained sense of humor. Hurwitz understands that the audience of Democrats in Philadelphia have joined together to make history. Michelle Obama’s speech shows in a moving and empowering way what turning a new historical leaf has meant so far. “That is the story of this country, the story that has brought me to this stage tonight, the story of generations of people who felt the lash of bondage, the shame of servitude, the sting of segregation, but who kept on striving and hoping and doing what needed to be done”, Michelle Obama asserts. And she goes on: “So that today I wake up every morning in

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a house that was built by slaves. And I watch my daughters, two beautiful, intelligent, black young women playing with their dogs on the White House lawn.” Hurwitz’s words and Obama’s delivery are powerful because they are true. The thoughts are noble, the language eloquent, but not one single word contradicts with Michelle Obama’s truth. Right-wing commentators are quick to point out errors in her speech right after, claiming that the White House hadn’t in fact been built by slaves. But they are wrong. Hurwitz’s message stands tall. To give a powerful speech, it helps to understand history. It may not be so easy to see yourself as part of a historical continuum, but a clever speaker is able to impart that sense to an individual or group. The speech of the father of a bride, a director’s speech at a retirement do or the company’s centenary celebration, a politician’s election speech, or a priest’s eulogy may not require that many words, but can make the moment extra special by revealing the person’s or community’s role as part of a longer chain. We have a shared story. We have a shared mission.We have shared predecessors, a shared adversary, a shared future. These are strong messages, which when directed accurately and sticking to the truth move the masses. It comes as no surprise that Hurwitz’s own role model is perhaps the most famous speaker in American political history, Dr. Martin Luther King. “I’m incredibly inspired by many of the speeches of Dr. Martin Luther King”, Hurwitz mentions to Aalto Leaders’ Insight. “He was a great moral and intellectual leader, and his words inspired a generation of Americans to join the civil rights movement, and they still inspire people today to stand up for what they believe and work to build a more just world.”

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L E A R N F RO M T H E B E S T

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L E A R N F RO M T H E B E S T – W H AT C A N E V E RY S P E A K E R L E A R N F RO M T H E G R E AT E S T S P E E C H E S I N H I S TO RY ?

cannot walk alone. We cannot turn back.” – but his most personal account rose above the rest: “I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.”

n his treatise Rhetoric dating from the 4th century BC, Aristotle teaches that in a good speech, three elements strike a balance: ethos, i.e. authority or credibility; pathos, i.e. emotions; and logos, i.e. logic. But what can we learn from masters of rhetoric post-Aristotle? 1. MAKE IT PERSONAL Dr. Martin Luther King gave his famous “I have a dream” speech during mass demonstrations on 28 August 1963 outside Lincoln Memorial in Washington, D.C. He had held part of the same speech already in June the same year in Detroit. The speech included a string of inspiring figures of speech and persuasive messages – “We

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2. BE INSPIRING ( A N D Q U OT E C L E V E R LY ) Ronald Reagan sold Americans a biblical allusion of a city shining on a hill both in his acceptance speech in 1980 and farewell address in 1989. In the Bible, Jesus urges his followers:“You are the light of the world. A city that is set on a hill cannot be hidden.” Ronald Reagan used the metaphor on

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several occasions during his presidential term when in need of an inspiring vision for the nation. “I’ve spoken of the shining city all my political life, but I don’t know if I ever quite communicated what I saw when I said it”, he claims in his farewell address in 1989. “In my mind it was a tall, proud city built on rocks stronger than oceans, wind-swept, Godblessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here.”

3 . S E T A N A M B I T I O U S G OA L Winston Churchill held his “United States of Europe” speech in Zurich in 1946. In the midst of the rubble of World War II, Europe was in desperate need of a new world order. On 19 September 1946, Winston Churchill gave a speech at the University of Zurich urging European countries – Germany included – to pull together. “I am now going to say something that will astonish you. The first step in the re-creation of the European family must be a partnership be-

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tween France and Germany.” In Europe of 1946, Churchill’s words were nothing short of radical. “We must re-create the European family”, Churchill advocated. “I say to you ’Let Europe arise!’”

4. BE HONEST Barack Obama received the Nobel Peace Prize in December 2009 at a time when his country was at war. Allegedly, Obama insisted on writing his Nobel speech himself, word for word.The speech wasn’t finalized until during the flight to the award ceremony in Oslo. “We must begin by acknowledging the hard truth that we will not eradicate violent conflict in our lifetimes. There will be times when nations – acting individually or in concert – will find the use of force not only necessary but morally justified”, the recipient of the Peace Prize remarked. “For make no mistake: evil does exist in the world. A non-violent movement could not have halted Hitler’s armies. Negotiations cannot convince Al Qaeda’s leaders to lay down their arms. To say that force is sometimes necessary is not a call to cynicism – it is a recognition of history; the imperfections of man and the limits of reason.”

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6 . C A L L TO A C T I O N In his inauguration speech, John F. Kennedy didn’t give promises, but an appeal. “My fellow Americans: ask not what your country can do for you — ask what you can do for your country”, he pleaded, continuing: “My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man. Finally, whether you are citizens of America or citizens of the world, ask of us the same high standards of strength and sacrifice which we ask of you.”

5 . S H O W W H AT YO U F E E L Tony Blair’s eulogy to Princess Diana in 1997 seemed to encapsulate the sorrow of the entire nation. As the nation mourned, the inability of the British monarchy to react to the tragic death of Princess Diana created a void which newly-elected prime minister Tony Blair managed to fill. Clearly grief-stricken, Blair spoke to TV cameras in Trindom in County Durham, giving Lady Diana the honor stripped away from her by the monarchy following her divorce: “She was the people’s princess and that’s how she will stay, how she will remain in our hearts and in our memories forever.” 7 . C RY S TA L I Z E , BE REMEMBERED Margaret Thatcher’s speech at a party conference in Brighton in October 1980 included a powerful one-liner that crystalized her entire lengthy speech in one sentence: “The lady’s not for turning.” To demands of a complete turnaround, Thatcher had a clear message: “To those waiting with bated breath for that favourite media catchphrase, the U-turn, I have only one thing to say: ’You turn if you want to. The lady’s not for turning.’” ◆

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* A series of points, or nodes, in an interconnected system that enables the rapid exchange and spread of information.

An extreme close-up photograph of sparks igniting a fire in steel wool.

Diploma in Industrial Internet and other programs: aaltopro.fi

I M PA C T & EXPERIENCE PA RT I C I PA N T S , FA C U LT Y & A A LTO E E ALUMNI

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The Department of Social Services and Health Care of the City of Helsinki is busy developing services for Mrs. Helmi with the help of lean thinking. “The clutter we eliminate doesn’t bring more money but more time for our customers.”

rs. Helmi is a well-known customer and neighbor among employees at Töölö comprehensive service center that comes under Helsinki’s Department of Social Services and Health Care. She was selected as a testee and first target of a new model, as the department’s key personnel began to rethink processes during lean training by Aalto University Professional Development (Aalto PRO). “We began by asking our customer first, Mrs. Helmi. She lives next door”, describes Marja Nurmi-

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Köngäs, director of Töölö comprehensive service center. “Our customers, elderly people, are the only reason we work here – to provide care and ensure our customers and residents good latter years. We are aging quickly, so services for the elderly need to be developed.” In the business world, lean thinking means making processes streamlined and efficient, and the connotations can be the same in the public >

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sector. Lean thinking at the City of Helsinki’s Department of Social Services and Health Care led to rethink Mrs. Helmi’s care plans. Several different care plans had been drawn up with different IT systems by the city’s different units, even within the same department. “I had some idea of lean thinking from automotive factories and other sectors, and had certain doubts about how it would fit in with the public sector. But we soon saw how well it worked”, says Nurmi-Köngäs. “Overlapping work by four of the city’s different units is a waste. The same mechanism applies whether it is a question of a car factory or the construction industry. Any clutter we eliminate doesn’t bring money as in the business world, but more time for our customers and residents. That’s our core task. These days, all the talk about being busy means not enough time to listen to customers. By eliminating clutter, we eliminate unnecessary work and create more time for our core task.” The training involved adopting lean methods in four full-day workshops and a closing seminar. “They were full days with a rigorous schedule. At times, going back to work the next day felt like a nice thought”, reminisce Marja Nurmi-Köngäs and Helena Siltala, who coordinates daytime activities at the service center. But the demanding workshop paid off. “It didn’t take long before Helmi had a new, joint care plan. Well, the aim was to create a joint care plan, but fairly early on we saw that the differing IT systems prevented us from moving to a single care plan entirely. But we did create shared goals for Helmi’s care plan, and managed to do the same for five other customers during the project. We’ve carried on after the training, and have now set goals for thirteen customers.” Helena Siltala thinks the training was long enough to kick new thinking into motion. “It definitely shouldn’t be any shorter.” Becoming familiar with the City of Helsinki’s a alto leade r s’ i n si g h t

CITY OF HELSINKI SOCIAL SERVICES AND HEALTH C ARE Social and health care services in Helsinki are to be reformed. The services are to be brought together into three centres, which will provide services in a comprehensive manner: Family Centres, Health and Well-Being Centres, and Comprehensive Service Centres. Marja Nurmi-Köngäs serves as the director of Töölö comprehensive service center. Helena Siltala coordinates i.e. daytime activities at the service center.

other instances was a key element in preventing overlapping work and in the training as a whole. In addition to elderly services, child welfare and dental care experts delved into lean methods during the training. “It was really good to have people from the department’s different units. We are experts in elderly services, and get siloed easily”, describes Nurmi-Köngäs. Both the director and coordinator at Töölö comprehensive service center hope to increasingly knock down barriers in public services. They are currently examining the prospect of opening up the service center for the elderly to children in the area.The elementary school in the vicinity has enquired about arranging physical education classes in the service center’s gymnasium. “Helena and I thought how nice it would be for the lobby to be filled with life, with children and stray mittens.” ◆

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A A LTO U N I V E R S I T Y E X E C U T I V E E D U C AT I O N LT D G LO B A L LY

Sweden

Finland Baltics

Russia South Korea China

Poland

Taiwan Iran Vietnam Singapore Indonesia

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exte rnal pe r spec tive to Orange’s top tale nts ”We have a lot of trust in Aalto EE to manage such a key and strategic people program for Orange”, says Jessie Lim, Head of Human Resources, Asia-Pacific, at Orange.

alto University Executive Education has developed a unique Talent Leadership Development Program for Orange Asia-Pacific in cooperation with the telecommunications giant’s own Orange Campus. The three-year program delivered in Singapore focuses on the changing business environment, especially the transformation of service business. Key questions to be answered are: How to create value to your customer, how to lead change in a global matrix organization, and how to think in an innovative and creative way? a alto leade r s’ i n si g h t

Jessie Lim, Head of Human Resources, AsiaPacific, at Orange, says the new program aims at two levels. “First, to focus on leadership development, developing the leadership bench and succession planning, and second, to drive talent management of our key talent - both top and emerging talents - so as to retain them for growth in the company”, Lim describes. “We were facing some talent retention challenges in 2015 and this program has helped to anchor our key talent and engage them proac-

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“Our participants greatly appreciate the much broader dimension offered by Aalto EE on the industry knowledge.”

tively for their professional and career growth. It has also broadened the horizon of our talents’ perspectives, and positioned them for job enlargement and promotions within the company.” Three of the program’s modules are facilitated by Orange Campus, three by Aalto University Executive Education. Orange Campus provides modules on empowerment, creativity, and management. Aalto EE’s modules tackle customer oriented mind-set, the “new normal” in business, and a business simulation. “The partnership between Orange Campus and Aalto EE is a customized, hybrid approach to develop our talents both from an internal as well as external perspective”, Lim says. “The internal referendum is important to ensure alignment to our company strategy, mission and values, and leadership competencies, while the external referendum provides a strategic exposure to our talents on the industry best practices and competitive landscape externally. In addition, the Orange Campus puts practical focus on building soft skills to encourage individual and team empowerment and leadership agility, while Aalto EE brings a strong element of business acumen skills in an academic yet practical approach.” The first Talent Leadership Development Program is still underway, but feedback has already been encouraging. “Engaging, effective and academic. Once in a while it is good to revisit this academic side of things”, wrote one participant. “Much of the content I can use in my daily work”, wrote another. Delivered “clearly with links to Orange”. vol 5

“Our participants greatly appreciate the much broader dimension offered by Aalto EE on the industry knowledge and competitive environment operating externally”, Lim interprets. “The partnership between Orange Campus and Aalto EE has been a very positive experience for us. We have a lot of trust in Aalto EE to manage such a key and strategic people program for Orange.We appreciate the flexible approach taken by Aalto EE, and the professionalism and high standard demonstrated by their staff.” Graduates of the program receive a Aalto University Graduate Diploma in Management. ◆

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ORANGE AND ORANGE BUSINESS SERVICES Orange is one of the largest operators of mobile and internet services in Europe and Africa and a global leader in corporate telecommunication services. Orange provides 4G in 18 countries, and has 3,3 million fibre customers. Altogether 265 million customers and 154,000 employees worldwide. Orange Business Services is a global IT and communications service provider, with services in 220 countries. Jessie Lim serves as Head of Human Resources, Asia-Pacific, at Orange.

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Swe et succe ss How did the traditional family-owned company define its Fazer Behaviours, which apply across the board from top management to chocolate factory employees? Mika Videman, Senior Vice President, Human Resources, at Fazer, explains.

ika Videman, Senior Vice President, Human Resources at Fazer, explains why the company decided to define a set of behaviors for the entire work community – Fazer Behaviours: “It all began with wanting to think about ways to make better use of employee potential through good leadership.What does good leadership mean at Fazer? We began to define it.The next step was to talk about how employeeship is defined at Fazer. Quickly we realized these go hand in hand. There is no point separating good leadership and good employeeship in the work community, as we a alto leade r s’ i n si g h t

need both to succeed. The same principles and values apply to everyone.” The process that lasted over a year resulted in a shared understanding of Fazer Behaviours divided into three subcategories. The idea is for the same notions to apply equally to everyone from top management to employees on a bakery line. The main principle was to create a clear and concise model towards which we can work together. “We avoided tricky words like strategy”, says Videman. This meant condensing long, distancing termi-

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nology into a simple form.“It really made us think about the company’s foundation, what we believe, our ethical principles, and our recipe for success and growth”, states Videman. He feels the process was beneficial all around, and the behaviors have resonated well in the work community.

mployees from all levels and different countries took part in defining the Fazer Behaviours. “The philosophy was that each of us contributes to the work community and impacts corporate culture.” Mika Videman explains the circle divided into three segments that was created on the basis of discussions. 1. We engage. “Everyone understands where Fazer is heading and how they can contribute to the company’s success. We respect and listen to each other.” 2. We develop “Everyone develops themselves and their team. Renewal takes personal courage. Employment relationships are lengthy, and there is little job rotation between functions, business areas, and especially countries. We need to encourage ourselves and others to do something outside of the comfort zone, otherwise new ideas and competence won’t arise.” 3. We perform “We do what we promise, and take responsibility for what we do and for doing it well.” The interview with Videman takes place in a meeting room called Fazermint at Fazer premises in Vantaa, just outside Helsinki. Year after year, Fazer continues to be one of Finland’s most recognized brands, and in 2016, its best-known product, Fazerin Sininen (Fazer blue), was ranked as Finland’s most valued brand already for the eight time. Fazer Experience center is located next to the office building, with groups of schoolchildren delving into the company’s history – without forvol 5

getting to fill their mouths and bags with chocolate from the factory outlet at the end of the tour. “We operate in many sectors that are not growing as such”, says Videman. “This means having to find renewal inside the current business areas, and enter into new areas, become more international. We continue to be rather dependent on Finland.”

lso training offered to the company’s top management is based on Fazer Behaviours. A training program called “Fazer Energizer” was launched last fall, arranged together with Aalto University Executive Education. Fazer Energizer consists of different elements, such as an online kick-off and energy survey, 360 questionnaire with feedback, a three-day, in-class-

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MIKA VIDEMAN b. 1967 M.Sc. (Tech.) Senior Vice President, Human Resources, Fazer Group Previously e.g. at Nokia before joining Fazer six years ago. Fazer is a Finnish family-owned company with operations in eight countries and products sold in over 40 countries. The company founded in 1891 offers bakery, grain, biscuit and confectionary products as well as food and café services. Co-operation with Aalto EE: Leadership program for Fazer leaders: “Fazer Energizer”. The goal of the program is to develop and drive a high-performance culture built on Fazer Behaviours and Values.

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“Simply polishing the surface is no longer enough anywhere.” room module in Helsinki, and follow-up through online team coaching. “The main reason for choosing Aalto EE was that they seemed to understand us the best overall: the operating method is highly customer-oriented, and we built the program together.The whole package is established on Fazer values and Behaviours.” The first Fazer Energizer module was arranged in fall 2016, and the next program for 25 participants will have the same concept as the first one. According to Mika Videman, the Aalto EE program had a particular strength in combining practice with theory. “The program provides practical tools that can be put into use straightaway. For instance, the strategy is communicated through exercises. Participants receive feedback, presentation experience, and see issues from different perspectives.” “We value lecturers who are international and consider the needs of the audience, steering the course along the way according to interest. Our group was particularly interested in the concept of energy, and how it shows in the work community and management.” The program received excellent feedback from participants, and gained positive resonance also wider in the organization – partly thanks to the Echo Team method, which involved Fazer executives and senior managers also from outside the Energizer program in the learning process. “The Echo Team spread the learning wider in the organization”, says Mika Videman. The Echo Team is a group of co-workers with whom participants meet before and after the training module to discuss and experiment ideas and lessons learned from the program.The Echo Team shares experiences and insights, and suggests steps for applying ideas in practice. The goal is to ena alto leade r s’ i n si g h t

hance learning, and leverage ideas and insights wider in the organization.

ika Videman has worked at Fazer for six years. He is certain that “an employee’s motivation plays a major role in business”. “People can come to work mainly to drink coffee. The difference is huge compared to someone whose heart beats for what they do. I believe when people are motivated, they also enjoy work more and feel better in themselves. It also brings better results.” As HR director,Videman knows that aiming for a high-performance culture is not just down to hard work. “It’s important to take care of yourself. You need a balance.” Also Fazer training programs emphasize employee wellbeing. One of the goals of the program planned together with Aalto EE is “to develop an awareness on how your own wellbeing affects your ability to execute focused and energizing leadership”. Videman remarks that working life is changing more and at a faster rate than we even realize right now. It’s his job to envisage the type of employee experience Fazer will be offering in, say, five years’ time. “Simply polishing the surface is no longer enough anywhere.” “Attracting the best people means you have to examine what the company is like as a workplace, how it is managed, what its processes and culture are like, and how it supports an increasingly digitalized life – can employees work from anywhere, have routines been automated, and so on.” According to Videman, values and pillars of corporate culture documented on the intranet are not of much use if the reality is something else. “Transparency will only increase in the future. It doesn’t matter what a workplace claims to be. What matters is what employees feel about their work and how they communicate it to others.” ◆

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A A L TI O M P EA EC TI M &P AE CX TP EI RN I ENNUCME B E R S

A A LTO U N I V E R S I T Y E X E C U T I V E E D U C AT I O N A L U M N I

A A LTO U N I V E R S I T Y A L U M N I

85,000 FINLAND 12,000 S O U T H KO R E A 3 , 6 0 0 TA I WA N 3 0 0 SINGAPORE 300 IRAN 25 POLAND 380

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“Swift, f lexible, and profe ssional” A tailored program for the Nordic Investment Bank brought together a diverse group of experts from bankers to lawyers. “We wanted everyone to gain new insight”, states HR Business Partner Andreas Nyberg.

he Nordic Investment Bank (NIB) is a specialist organization with approximately 200 employees from different countries and work backgrounds. “Employees tend to stay with NIB for a long time – the average length of employment is 11.7 years. We pride ourselves in providing extensive professional development for our personnel”, says a alto leade r s’ i n si g h t

Andreas Nyberg, HR Business Partner at NIB. The Raising the Bar program tailored for NIB by Aalto University Executive Education is an element of professional development provided for the bank’s employees. What was the main objective for NIB when you began planning the program?

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“As mentioned, NIB provides a wide range of professional development for its staff. Most of the courses had a special focus on NIB, including its processes and market standards, such as bank regulations, due diligence, etc.” “The objective for planning the program was to change the focus from us to our clients; what our clients need, and how their particular business environment may influence their need for financing.We also wanted the program to strengthen our team spirit and cross-departmental cooperation.” How would you describe the experience and co-operation with Aalto EE? “Aalto EE has always had a professional and flexible approach to our needs. Executing the pilot program required a great deal of detailed work, and input from NIB stakeholders and professors. All of this was carried out in a swift, flexible, and professional way.” “In addition to the outsider perspective provided by the program, the self-development module in connection to coaching seemed to give participants insight into their own personal development.”

lieve we succeeded in reaching our objectives.” How did the program help participants better understand clients and the business environment? “Providing participants with a new angle from a customer perspective forced to think beyond their own fields.They were challenged to think outside of the box. Also, the modules were very different and some of the participants were experts in certain areas, which gave room for in-house experiences to be shared openly with the group, providing a NIB context for what was learnt.” ◆

The program focused on gaining a better understanding of clients and their needs, with main goals of strengthening the professional identity and competence of participants, and broadening their understanding on the business environment. Were these goals attained? “The group was very diverse representing different areas of expertise, such as bankers, accountants, and lawyers. This added its challenges to the content of the program, as we wanted every participant to gain new insight. In my opinion, we succeeded. In addition to new insight and skills provided by the professors, the participants bonding and sharing experiences and challenges in different functions of the bank was an additional benefit. I bevol 5

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NORDIC INVESTMENT B ANK Nordic Investment Bank NIB is an international financial institution owned by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. NIB finances projects that improve competitiveness and the environment of the Nordic and Baltic countries. The Bank offers long-term loans and guarantees on competitive market terms to its clients in the private and public sectors. The Bank has lending operations both in and outside its member countries. NIB acquires the funds for its lending by borrowing on the international capital markets. NIB’s first Raising the Bar program in co-operation with Aalto University Executive Education was carried out from December 2016 trough March 2017.

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No More Botch Jobs “There’s a lot of frustration in the construction industry”, claims Olli Seppänen, Professor of Practice at the Department of Civil Engineering at Aalto University. He suggests lean thinking as a remedy.

ean is a process management philosophy that views a company and supply chain as a whole, aiming to improve schedules, quality, and cost. Professor of Practice Olli Seppänen from the Department of Civil Engineering at Aalto University knows the inner workings of lean thinking through research, writing, establishing companies, a alto leade r s’ i n si g h t

and taking part in international development around the theme. Seppänen has a clear answer to why large-scale construction projects tend to fall behind schedule. “Above all, construction projects are about trust”, he says. Not about technology or project plans, but trust – although usually its lack.

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“At its simplest, lean means not wasting time.”

According to Seppänen, a lack of trust usually stems from several different partners being involved in a project. Building trust is extremely difficult if each project involves a new team with members from different companies and organizations. Usually someone’s gain is another one’s loss, creating a wedge between the commissioning company and the supplier. Seppänen praises the joint agreement model, which is becoming increasingly widespread in the industry, with all partners committing to a shared goal already during the agreement stage. In this context, lean thinking can have a profound effect on the sector. “So much time is wasted in the construction industry. At its simplest, lean means not wasting time.” Lean thinking has three key objectives: flow, maximizing value, and transformation. The traditional project theory solely emphasized transformation by optimizing each subcontract and minimizing cost. This didn’t bring optimal results, although somewhere along the line someone perhaps felt they saved some money. “At some point, some genius decided to divide a construction project into chunks and find the cheapest company to take care of it”, describes Seppänen. He hopes the model will change. And change is surely in the air. Seppänen enthuses about the discussion in Finnish media in the fall about pipe renovation schedules. “It sure is eye-opening when you see that a company can complete a job in two weeks that takes others three months”, exclaims Seppänen. He has a theory for what spins change into motion: “Greed and envy lead to change. Those are the biggest driving forces in the construction industry.” vol 5

Digitalization goes hand in hand with lean thinking, both ensuring the best quality and most agile schedules. Digital development brings new tools and improves communication. Seppänen mentions paper copies of building plans used at construction sites as an example.You never know if you’re looking at the latest version. “A random test was carried out at a construction site in 2010. It turned out that nearly everyone was using a different version of the plan. No wonder mistakes happen.” He mentions American construction firms that no longer use paper plans at all to avoid errors. “Anything that improves communication improves the project.” ◆

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OLLI SEPPÄNEN Olli Seppänen teaches in the Aalto PRO Diploma in Construction Management – Lean and Digital Operations program. Seppänen D.Sc. (Tech.) serves as Professor of Practice at Aalto University School of Engineering, Department of Civil and Structural Engineering. He has previously worked several years in national and international research, education and development positions in construction economics and management. The topic of his doctoral thesis, with distinction, was Empirical research on the success of production control in building construction projects.

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looki ng for brave startups “Nothing like this has ever been done before”, says Fabian Sepulveda, Senior Advisor at Aalto ENT.

tora Enso, one of the world’s leading providers of renewable solutions in biomaterials, packaging, wooden constructions and paper, takes a visionary step to gain new insight and innovation. In co-operation with Aalto University Developing Entrepreneurship (Aalto ENT) and Vertical (a globally-renowned startup accelerator), Stora Enso is launching the unique Accelerator Program Digital Solutions that will bring six selected startups under the wing of the forest industry giant. “It is a pioneer program. In my opinion, nothing like this has ever been done before”, states Fabian Sepulveda, D.Sc., Senior Advisor at Aalto ENT. “This is an incredible opportunity for the startups and Stora Enso: the startups get the chance to work with a world-class corporation that could become a potential customer or future partner.” Sepulveda, who is actively involved in the development of entrepreneurial ecosystems in Finland and internationally, will act as one of the lecturers on the program. Aalto ENT will provide a uniquea alto leade r s’ i n si g h t

ly crafted executive education program to support and deepen co-operation between Stora Enso executives and the participating startups. “This will not be a typical classroom experience,” promises Sepulveda. “Startups and Stora Enso executives will sit side by side. Our executive education will be the glue, the harmonizing factor.” In this triangle, the Accelerator Program Digital Solutions will not only combine startups and Stora Enso. It will also bring together theory and practice, academic knowledge and business know-how. “This is not only an executive education program or accelerator program. It’s both put together. One benefits the other.We definitively want to achieve and provide a deeper impact. This will be much more than a plain vanilla accelerator program.” The program will combine executive education from Aalto ENT with a 4-month accelerator program facilitated by Vertical. Dedicated resources from Stora Enso will work side by side with each startup team throughout the period. Sepulveda says Stora Enso is seeking insights outside its own fields of business. “They are already experts in their own field. Stora Enso is now looking for startups that approach smart factory, supply chain problems, customer experience, and automation from a different point of view. They are ready to step out of their comfort zone.” ◆

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FABIAN SEPULVEDA Fabian Sepulveda, D.Sc. (Econ. & Bus. Adm.), was nominated as Senior Advisor at Aalto University Executive Education this March. He has been part of Aalto EE’s faculty for several years. In his doctoral dissertation, Sepulveda examined international entrepreneurship.

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W I S H TO C O N T I N U E R E A D I N G R E G U L A R LY ? T H E M AG A Z I N E I S P U B L I S H E D I N P R I N T T W I C E A Y E A R , B U T YO U C A N E N J OY T H E A A LTO L E A D E R S ’ I N S I G H T M O N T H LY H I G H L I G H T S S E N T TO YO U R E - M A I L . S U B S C R I B E N OW F O R M O N T H LY H I G H L I G H T S W W W. A A LTO E E . C O M / H I G H L I G H T S 6 A A LT O L E A D E R S ’ I N S I G H T I S A P R I N T A N D E - M A G A Z I N E W I T H S T O R I E S , A RT I C L E S A N D V I E W S A B O U T D I F F E R E N T A S P E C T S O F L E A D E R S H I P, B U S I N E S S A N D S E L F - D E V E L O P M E N T.

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From change manageme nt to change capab i lity ”Noticing how people from very different kinds of organizations were working with similar HR-challenges was a wake-up call”, says Laura Ansaharju from Finnair.

Sc. in Technology Laura Ansaharju has worked in various HR management positions at Finnair since 2011. In 2016, Ansaharju took on a new area of responsibility: her task is to enthuse and steer Finnair’s 5000 strong staff in digital transformation from the perspective of good personnel experience. Ansaharju took part in Aalto EE’s Executive HR program during spring 2016. She says the program gave her a great deal of ideas, both for her job at the time as head of HR at Finnair’s commercial operations, and also for her new work with transformation involving Finnair’s entire personnel. “For a company, cultivating the staff ’s compea alto leade r s’ i n si g h t

tence is always advantageous.The return on investment is manifold”, reminds Ansaharju. She herself decided to take part in the Executive HR program after having heard positive remarks about it. Ansaharju was especially interested in the program’s emphasis on strategic HR. The program was an intensive, stimulating, and epiphany-provoking experience: “My expectations were high–and they were smoothly topped. The program was challenging, and it brought immediate and tangible benefits: it was very easy for me to go and try out things in my own organization.” Some months after the program, Ansaharju noticed how certain ideas she brought back from it had turned out to be important change-catalysts. ”For instance Pekka Mattila advised us to move on from change management to change capability. That was a slogan that hit me. I have vigorously boosted this thought internally. We must proactively develop our agility and change capability: we should be enthusiastic about opportunities and dare to courageously try out new things. Now, with digitalization, every last company’s change capability will be tested.” ”Also, noticing how people from very different kinds of organizations were working with highly similar HR-challenges was a wake-up call for me. I realized what great potential us HR-professionals would have in networking.”

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LAURA ANSAHARJU  Vice President, HR Transformation, Finnair. M.Sc. in Technology Laura Ansaharju has worked in various HR management positions at Finnair since 2011. Ansaharju took part in Aalto EE’s Executive HR program.

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“You have to ke e p c urre nt – ahead of the c urve.” “If you keep providing fresh insight to the company, then there is no expiration date to your board work”, says board member Annika Jyllilä-Vertigans.

“Particularly valuable modules included the sessions relating to strategy work and changing global dynamics, as well as Pekka Mattila’s session on team performance in a board – a highly relevant topic which I don’t think is discussed enough. An unexpected bonus for me was the network of peers participating in the program, many of whom I am still in touch with today.” A board member since 1997, Jyllilä-Vertigans says that she sees continuous self-improvement as an imperative – and as such any board member’s responsibility toward the company they serve. “The current rule of thumb says that a board member’s tenure is five years. And I agree; if you don’t grow, you are definitely done in five years.” “But if you are a person who has a bit more to offer every year, who keeps providing fresh insight and input to the company, then there is no expiration date to your board work.You push it forward.” “As a board member on a strategic board, you must keep yourself current and ahead of the curve. In order to make the right judgement calls, you must be capable of challenging the status quo. Where you may not have the deepest knowledge, it is critical that you have the headlines and that you have the right questions.This program helped me immensely in creating that framework.”

nnika Jyllilä-Vertigans wears two hats. She is an entrepreneur at AJAN Consulting, and a board member of Serres, a family group of businesses in the plastics industry. “Serres has always placed a great deal of emphasis on the importance of strategic board work – a lesson learned through experience well before my tenure as a board member”, says Jyllilä-Vertigans. “We are now in the process of entering the highly competitive U.S. market. To me, it seemed like an appropriate time to update my knowledge and skills, and I felt that taking part in Aalto EE’s Board of Directors program was a great way to do just that.” vol 5

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ANNIKA JYLLILÄ-VERTIGANS An entrepreneur at AJAN Consulting, and a board member of Serres, a family group of businesses in the plastics industry. In the niche market of high quality suction systems for healthcare professionals, Serres is the second largest supplier in the world and the market leader in Europe. Jyllilä-Vertigans took part in Aalto EE’s Board of Directors program.

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- In Short and Long Term

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P RO V E N I M PAC T A N D S U P E R I O R EXPERIENCE – I N SImpact H O RT A N D Superior LO N G T EExperience RM Proven and

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M U LT I - D I S C I P L I N A RY FAC U LT Y, L AT E S T K N OW L E D G E

MULTI-DISCIPLINARY FACULTY, LATEST KNOWLEDGE SUPPORTING SU P P O RT I N G ORGANIZATIONS O RG A N I Z AT I OIN N BUILDING S IN EFFECTIVE LEADERSHIP PIPELINES B U I L D I N G E F F E C T I V E L E A D E R S H I PAND STRATEGIC RENEWAL P I PFOSTERING ELINES AN D FOSTER ING S T R AT E G I C R E N E WA L EQUIPPING INDIVIDUALS WITH SKILLS, COMPETENCES, SELF-AWARENESS AND E Q U ISENSE P P I N GOF I NACHIEVEMENT DIVIDUALS

WITH SKILLS, COMPETENCES, S E L F - AWA R E N E S S A N D S E N S E O F AC H I E V E M E N T

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Your learning experience with us will not only gain competitive advantage to you and your company, but also have a wider impact on society.

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ON SOC CTT O N S O ICE A C TI P

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NETWORKS AND OPPORTUNITIES GROWING FUNDING NETW O R K S ATO N DRESEARCH O P P O RT AND U N I TTEACHING IES

The G RO W IFinancial N G F U N DFootprint I N G TO R EinS Ethe A RCAalto H A NCommunity D T E AC H I N G A sizeable income to the university community in various forms such as dividends, tuition fees and rents (EUR 2.6 million in 2016).

Aalto EE’s financial footprint in Aalto community is EUR

2.6

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million (year 2016)

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A A LTO L E A D E R S ’ I N S I G H T Editor in Chief Pekka Mattila Executive Producer Riitta Lumme-Tuomala

Editors Reetta Räty Ville Blåfield

Producer Kati Kiviniemi

Creative Director Jarkko Hyppönen Translations Rebecca Watson

Columnists Katja Ahoniemi Mikko Laukkanen Contributors Heidi Hammarsten Touko Hujanen Annukka Oksanen Sakari Piippo Anja Reponen Paula Salovaara Concept Räty-Salovaara-Blåfield Ateljee Hyppönen

Publisher Aalto University Executive Education Ltd Mechelininkatu 3 C, 00100 Helsinki, Finland tel. +358 10 837 3700, www.aaltoee.com Aalto University Executive Education Pte Ltd 25 North Bridge Road, EFG Bank Building, Unit 02–01 179104 Singapore, Singapore tel. +65 6339 7338, www.aaltoee.sg Strandvägen 7A, 114 56 Stockholm, Sweden tel. +358 10 837 3700, www.aaltoee.se Printed by SP-Paino Oy, Nurmijärvi, ISSN 2342-3986 Address Register aaltoleadersinsight@aaltoee.fi

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A A LTO LEADERS’ INSIGHT ONLINE STREAM: Anja Reponen is an illustrator and painter based in Helsinki, Finland. Reponen is specialized in portraits, with background in book cover and graphic design. For this issue of Aalto Leaders’ Insight, Reponen illustrated Annukka Oksanen’s article on hidden power structures of organizations (p. 41–54).

W W W. A A LTO E E . C O M / B LO G Aalto University Executive Education hosts and curates a stream of varied content online. At www.aaltoee.com/blog you can find articles – i.e. the long-form Books from this magazine, easy to forward and share digitally – videos, columns and blog posts by Aalto EE and Aalto University faculty and alumni and journalists and other guest writers invited to share their insights with the Aalto EE community.

EXAMPLES F RO M T H E D I G I TA L C O N T E N T : Annukka Oksanen is a Copenhagen-based journalist and writer specialized in economics and politics. She has previously worked for e.g. Helsingin Sanomat and The Financial Times.

Kai Rönnberg’s Aalto MBA Journal How to survive the growing pains of a startup? At the core of leading service business: What your customers feel they gain from you? Case DHL: How Deutsche Post put ‘paralyzing protectionism’ on its management radar five years ago

C O N N E C T W I T H A A LTO E E ON SOCIAL MEDIA: The entire layout of Aalto Leaders’ Insight is designed by Jarkko Hyppönen, graphic designer and art director based in Helsinki, Finland. Hyppönen has studied graphic design and typography at Aalto University in Helsinki, and at l’ESAG in Paris.

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Aalto Leaders’ Insight – the magazine by Aalto University Executive Education. Library of insights: How did graffiti become accepted by the art world? How to manage hidden power structures? What happens when a Nordic immigrant steps into the middle of America’s partisan war over health care? And how to write a great speech?