Aksel Mjøs, Head of the Finance Department at NHH Norwegian School of Economics: Five Things You Need To Be A Highly Effective Leader During Turbulent Times

… Step four is to consult the people around you. Make sure they are still happy and engaged with their work. If you have done a good job hiring the best people you possibly can, you will find you have a strong, capable workforce. Treat them decently and with respect.

As part of our series about the “Five Things You Need To Be A Highly Effective Leader During Turbulent Times”, I had the pleasure of interviewing Aksel Mjøs, Head of the Finance Department at NHH Norwegian School of Economics, which was ranked the top business school in Norway in the latest Financial Times ranking of European business schools. Prior to his career in higher education, Mjøs spent 14 years working in the finance industry, including a position as CEO at DnB Asset Management, the asset manager of the largest bank in Norway.

Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

I’m a firm believer that finance does not have to just be about profits spiralling upwards, it’s about allocating capital well, and thus an opportunity to do good and have a real human impact. Since I graduated from a Master’s degree at NHH Norwegian School of Economics in 1987, I can divide my career pretty cleanly into four phases.

The first of these was the 14 years I spent working in the finance industry. It set me up for the future and gave me my first taste in leadership positions. I worked for three years at Morgan Stanley, ending up as Vice President. After that, I took the role of CEO at DnB Asset Management, the asset manager of the largest bank in Norway.

Then came a big jump — from CEO to PhD student. I went back to study, again at NHH. It was the right move for me. Not only did I want to increase the amount of time I could spend with my family, I had a desire to start doing more research on core finance topics than I was able to from within the industry, where it was about doing just what was needed to make deals happen. I’ve been in academia now for over 20 years.

Since then, I have been fortunate enough to hold senior positions on several boards and committees, including a role as Chairman at the Kavli Trust, which provides around $10 million USD every year in financial support for great causes. Since then, I’ve founded my own initiative, Gi Gaven Videre (in English, that is ‘Give the Gift Forward’), a non-profit startup offering digital giftcards, and allowing the recipient to choose which pre-approved charitable causes their gift should be given to. We have a range of 116 causes to choose from.

The last leg of my journey includes various governmental duties. I spent just over a year as Chair of The Capital Access Commission, which had an impact on policies and grants, contributing to more innovation. Currently, I’m Chair of The Committee on Nature Risk, tasked with reviewing how Norwegian industries and sectors will be affected by environmental factors like reduced biodiversity, as well as tightening international regulatory frameworks.

Can you share with our readers a story from your own experience about how you lead during uncertain or difficult times?

I will preface this by saying that the global background is uncertain for all of us these days, and has been for some time. It is important to surround yourself with confident and highly competent people, so you can draw on their skills.

When I was CEO of DnB Asset Management, the main thing I knew I had to do was not get in the way of great people. My task was to hire people more talented than myself and make sure they were happy and engaged in their jobs, so that their talents could come to the surface naturally. I believe that intelligence is quite evenly spread out among people, and there is certainly no guarantee the boss has the most of it. So, I don’t think it’s wise to have a control freak attitude and constantly be micromanaging. If you do that, you won’t recruit or retain the sort of sharp, free thinkers you need to keep the company moving forward.

This is a common thread that runs through all the fields I’ve worked in. But, there are certain things that do change. For instance, the financial sector is full of high achievers who are particularly focused on competitive compensation. So, as a CEO I spent a lot of time designing and managing the bonus systems to make sure we incentivised the right behaviours to keep our competitive edge. In a charitable organisation, where you are dealing with all volunteers, this isn’t the case and you have to motivate people purely on how well you can “sell” your vision and your cause.

Where did you get the motivation to continue through your challenges? What sustains your drive?

Looking at the people around me and seeing human beings as well as their professional titles. In the various leadership positions I have held, I try to be positively curious about how they approach problems and tasks, and what their capabilities are. I think this is not just a me thing, I think it applies to a Norwegian and more generally Nordic attitude to leadership in general.

I’m Head of the Finance Department now at NHH, my main responsibility. At lunch time all the fixed tenure professors, the professors aspiring to fixed tenure, secretaries, and PhD students sit down and dine together. We have free and easy conversations on an equal footing. This might seem strange to people from other cultures. Sure, there is a hierarchy. I am the boss, but I see no need to be bossy. It is not up to me to impose myself in every interaction. They know who to come to, and I know that I have the necessary authority. I enjoy forming those connections and listening to people.

What would you say is the most critical role of a leader during challenging times?

In a sense, you should always be seeking out a degree of uncertainty, that comes with being ambitious. Leaders should push themselves and shoot for opportunities that are unlikely to come off, but would be have great and positive consequences if they did. This means you’re always operating at the borders of your comfort zone. In stretching yourself, you create uncertainty. You need to be comfortable with that. I enjoy working in organisations where people are relaxed knowing that only one out of five opportunities will kick in, but with brilliant results.

The other key is transparency and honesty in communication. I run Gi Gaven Videre with completely honest reporting on what money we get in, what we spend it on, what pro bono resources we receive, and so on. I’ve found it’s much easier to get people on board when they know they can trust you, and also “the numbers”.

How can a leader make plans when the future is so unpredictable?

To a certain extent, you’re not going to create a 100 percent bullet-proof plan. But, much of this comes down to basic competency. You should know what the areas of uncertainty are, what the most likely outcomes will be, and what the best measures are to mitigate against unwelcome shocks. If you don’t know your stuff, people will quite quickly see through you, and you’ll lose their trust and respect. If you’re not up to the task, know that it’s time to step aside.

Here is the primary question of our discussion. Based on your experience and success, what are the five most important things a business leader should do to lead effectively during uncertain and turbulent times? Please share a story or an example for each.

I think a lot of this harkens back to things I’ve already mentioned. First, be very clear with yourself about what your role is. If you’re in a leadership position, you should also have very good knowledge of your industry, organisation, and the people that work for you.

Second, keep your employees informed. You should be transparent and consistent in your communication with them. This doesn’t mean you have to be vocal about everything that is going on externally, but you should keep channels open internally.

Third, unlock the resources in your organisation. Bearing in mind what I have said about bosses not being superhumans who are vastly more intelligent than their employees — there might be resources you are not necessarily aware of.

So, step four is to consult the people around you. Make sure they are still happy and engaged with their work. If you have done a good job hiring the best people you possibly can, you will find you have a strong, capable workforce. Treat them decently and with respect.

Five, it helps if you demonstrate a personal commitment. When I started Gi Gaven Videre, my wife and I were in a fortunate position where we could put the equivalent of around $24,000-$30,000 USD into the venture. We will never see any kind of financial return on that investment. On a smaller scale, as Chair of The Committee on Nature Risk, I try to travel less by aeroplane to reduce my carbon footprint. This is a smaller example, but it’s still very concrete.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

It’s not a quote, as far as I’m aware, but, “Humans first.” I remember living in London, getting teary-eyed in a Norwegian Seamen’s Church because it took me back to my roots before taking the cab off to Canary Wharf to start work at noon on a Sunday. We are all human beings, and people deserve to be treated as such, as well as acknowledging their professional position.

How can our readers further follow your work?

I have a few things going on. The first is The Committee on Nature Risk, which will be publishing a government whitepaper before Christmas this year. It’s still a work in progress at the minute, but keep an eye out. For international readers, we will be publishing an English language version of the report. Find out more here.

Second, there is Gi Gaven Videre. It’s still at the stage of being a Norwegian project right now, but we’re confident it will do well at the international level. It’s just a question of funding. The website is fully operational, and there is an English version too, which can be found using this link https://www.gigavenvidere.no/en

Research-wise, I’m lucky to work in a country with terrific access to data. My interests at the minute are the importance of the return to investing in early-stage startups, angel investors, and the importance of using your home equity for investing in your business. So, a range of financial topics.

Thank you for your time! We wish you continued!