Highlights from the DABF Annual Meeting:

Inspiration for Success in the US
By Sia Normann, DABF Intern

Confidence in the U.S. market 

US Ambassador Laurie S. Fulton, enthusiastically initiated the conference by encouraging the audience to have confidence in the American economy, the American can-do-spirit and President Barak Obama. Ambassador Fulton emphasized that the US is still the largest and most productive economy in the world. Acknowledging the slow economic recovery, she also pointed out that unemployment is currently at its lowest point in two years (8, 8%).

Innovation in clean energy is a key area of interest for the US, and according to Ambassador Fulton, the Danish position in renewable energy serves as an inspiration. This could very well increase US business opportunities for Danish companies.

The Danish Ambassador to the US, Peter Taksøe-Jensen, shared the optimism of Ambassador Fulton, expressing a strong confidence in the US economy despite a somewhat slow recovery. He believes an economic optimism is emerging. He stressed the continued importance of the American market for Danish businesses: the US is Denmark’s forth largest export market and the greatest export market outside Europe. In terms of market opportunities, Ambassador Taksøe-Jensen suggested reconsidering the hype about the Chinese market, pointing out that GDP per capita is ten times higher in the US.

Another point from Ambassador Taksøe-Jensen: Denmark has a very positive connotation in the US, due to the good relationship between the two countries and our shared set of values. This is an advantage over businesses from other countries when doing business in the U.S. Common ground and similarities are worth keeping in mind.

Inspiration for Success in the US

Danish business icon, Jan Leschly focused on three important topics for success in the US: leadership styles, incentives and cultural differences. In terms of leadership style, Leschly introduced the concept of 'the mid-Atlantic style' – a combination of the Danish and American leadership style involving both a collective-oriented and an individualistic approach to leadership. This style is achieved by listening to other people, but ultimately making the decision on your own, having heard different viewpoints.
Mr. Leschly also enumerated five criteria to consider when selecting a top of the line management team:
- high energy level and preparedness
- a sense of humor to make interaction smooth
- being street smart vs. being book-smart; the ability to make theoretical knowledge operational
- good judgment
- caring and successful in family life (is key to succeed in business)

In terms of creating incentives, Mr. Leschly introduced the concept of 'strategic intent'. This is a way of motivating through enthusiasm - of creating a sensation of winning among your employees and stretching company goals beyond planning. Strategic intent can serve as a strong incentive and may work particularly well in the US because Americans, in Leschly's words, love vision and excitement. And, he pointed out the importance of setting a new goal when the current goal is reached. Mr. Leschly also discussed the value of setting up an incentive system based on performance that rewards both individuals and teams.    

Mr. Leschly mentioned, with both humor and sincerity, a number of cultural differences between the US and Denmark. First, be aware of the heterogeneity of the US. Pay attention to inter-American differences and never start a discussion about religion or politics, as regional differences make it difficult to know what the person you are talking to is thinking. Second, money is an American value. It signifies importance, and the opinion of people with money matters. Finally, Mr. Leschly notes that “American can’t help suing each other” – settle if possible!

PANDORA’s US journey has been very inspiring. The company introduced their charm bracelet in 2000 and entered the US market in 2003. Sales have increased from 3 million units in 2004 to 57 million units in 2010. Kenneth Ramstrup pointed out that the uniqueness of their concept was instrumental to Pandora's success in the US. It pays to make it clear (to yourself and others) what your product has that others don’t. Furthermore, PANDORA had a finished concept – the PANDORA Box, already developed technologies in production and great experience in their activities.

What they didn’t have, according to Kenneth, was knowledge about the American market. Many activities along the road were done by their own efforts in a non-commercialized way. However, they controlled what they could and applied the knowledge they had. They made sure their products were sold the ‘right places’ on PANDORA’s terms through a selective strategy, avoiding large department stores so as not to have to comply with their unfavorable terms. Furthermore Kenneth noted that their business plan was an important planning and navigation tool.