The Finnish "Sauna-Style" Approach to Thinking: Three Essential Perspectives for the Diversity Era

In recent years, momentum for launching "new businesses" has been building at many companies. It seems increasingly common to see dedicated departments created for this purpose, or for individuals to suddenly be given the mission: "Come up with a new business."

But what should they do? Where is the right answer? To find clues, we visited Finland in November 2019 with representatives from five Japanese companies actively grappling with new business development. This series examines how to apply the insights and perspectives gained there in Japan.

The world's youngest female prime minister didn't emerge by accident. What is Finland's underlying strength?

Finland is strongly associated with being a nature-rich tourist destination. Other attractions include the aurora borealis, Moomin characters, and saunas, which have recently sparked a boom in Japan. However, its true appeal lies much deeper. Ranked #1 in the World Happiness Report for two consecutive years (as of 2019). Its progressive education system, which includes sex education starting at age 5, and its tolerance for diversity. The recent news of the world's youngest female prime minister, aged 34, is still fresh in our minds. This is by no means a coincidence; it embodies Finland's educational philosophy, which emphasizes respecting diversity and valuing the ability of each individual to think and act independently from a young age.

There's a reason we chose Finland among various business study tours this time. We believe the values and mindset underpinning modern Finland are major factors in its growing reputation as a "treasure trove for entrepreneurs." So, what exactly are the Finnish people thinking?

"There are no superior or inferior companies or universities" – is this the truth or just lip service?

Finland's core area consists of three cities: Vantaa, home to the international airport; the capital, Helsinki; and Espoo, located west of Helsinki. This compact region, easily accessible within an hour by car, concentrates the country's key political and economic hubs. We first headed to Espoo, a city holding particularly important keys.

Espoo is globally recognized as a Nordic innovation hub, nurturing many young entrepreneurs. We visited Aalto University's Design Factory, a key origin point for numerous innovations, to hear their perspective.

"In Finland, there's no hierarchy between universities and companies. Each has its own distinct character."

"When forming partnerships, the size of the other party is completely irrelevant. There's no hierarchy; you can partner with anyone."

These words come from Fanglan Tao, who handles international relations at Espoo City Hall. Originally from Shanghai, she moved to Finland in 1998 and earned her master's degree at Helsinki University of Technology (now Aalto University). After working for multinational companies in the US and China, this internationally experienced professional has been with Espoo City Hall since 2015. As a mother herself, she spoke about the significant differences in childcare environments between Shanghai and Finland.

"In Finland, childcare never gets in the way of work. Work always ends when daycare closes. In Finland, not interfering with people's holidays is incredibly important!"

As she personally experiences, Finland is renowned as a country with strong work-life balance and gender equality. She also notes that this "egalitarian" mindset permeates both education and business development. But is this truly the case, or...? With a mix of skepticism and curiosity, I decided to tour the campus.

Tokyo University of the Arts, Hitotsubashi University, and Tokyo Institute of Technology merged!?

Aalto University was born in 2010 through the merger of three institutions—the University of Art and Design Helsinki, the Helsinki School of Economics, and the Helsinki University of Technology—as part of Finland's national policy. Its purpose is to foster innovative ideas and drive innovation by having students from diverse fields and nationalities learn together. It is truly the "soil" for cultivating Finnish entrepreneurs. Comparable in Japan to Tokyo University of the Arts, Hitotsubashi University, and Tokyo Institute of Technology merging, how does this bold experiment impact Finnish students?

The Aalto University Design Factory we visited is one facility that symbolizes the collaboration between these three universities. It offers programs designed to nurture creative talent and incorporates various ingenious features to stimulate students. Particularly unique is the suddenly appearing "Hugging Point." There, hugging anyone is perfectly acceptable. A menu listing different types of hugs is displayed on the wall, complete with a "Hug Meter" device. Designs encouraging communication and breaking down barriers among students are strategically placed throughout the space.

Aalto University Design Factory. Inside the facility is the famous "Hugging Point".

Facilities and design that inspire creators. Café and kitchen spaces are also well-equipped.

The "Sauna," where diverse values converge, is a hub for innovation.

Another standout campus facility is the "Startup Sauna," a gathering place for aspiring young entrepreneurs. The sight of diverse students coming together in one space, each exposed to different values, is just like a real "sauna."

For Finns, the sauna is as familiar as the bath is to Japanese people—a place for family gatherings and socializing. In public saunas, diverse values and people of different races come together in the same space, fostering communication. Sometimes, even within the sauna, startups and investors discuss funding opportunities.

Finnish saunas also symbolize places where diverse people gather. (Left) Inside a sauna set up at the Finnish startup event "SLUSH." (Right) The public sauna "Kuusijärvi," beloved by Finns. Located at the foot of a national park, visitors can cool off in the lake after warming up.

They believe innovation arises precisely because diverse values converge. Rooted in a "sauna-style mindset" that embraces diverse people and values, it leads to the conclusion that comparing things to rank them is meaningless. Respecting those different from oneself is what is productive and efficient. "There is no superiority or inferiority" – this idea, which might seem idealistic, can actually be the shortest path to innovation.

(Left) "Startup Sauna," an acceleration program at Aalto University. Supported by the university and venture capital investors, it serves as a gathering place for young people aspiring to start businesses. (Center) A space is provided where diverse people can freely come and go and interact. (Right) The facility also includes sauna-style meeting spaces.

Why Finnish Students, Once "Big-Company Oriented," Changed

So how does Japan measure up today? Its ranking on the "Gender Gap Index," which quantifies gender equality across nations, hit an all-time low of 121st place (announced December 2019). The gender pay gap remains high, society is harsh on single mothers, corporate leadership is almost entirely male, and female politicians remain scarce. Meanwhile, approximately 70% of suicides in Japan are men. Why does Japan—a nation renowned for its exceptional safety, advanced healthcare, and longevity—rank only 58th in the World Happiness Report (released March 2019), a score hardly commendable? One answer may lie in "fixed values." Ideal images of men, ideal images of women, and ideal forms of happiness are fixed. Deviate from these, and you're labeled a "loser." When the "correct" values become fixed, it inevitably means more people end up positioned as "unhappy." A clear example of this is Japan's harsh "job-hunting war."

Even in Finland, where entrepreneurial culture now thrives among many young people, students were reportedly "big company oriented" until relatively recently. A key factor behind this shift was undoubtedly Microsoft's acquisition of Nokia in 2013. Previously, top students aspired to join the major corporation Nokia, but as Nokia declined, many Finns were laid off and lost their jobs. This became a turning point. The unemployed began starting businesses one after another, eventually sparking a startup boom.

They boldly stood up, believing that landing a job at a large corporation wasn't the only path. Only by embracing diverse values and driving innovation could a new future be opened. This belief led to the launch of SLUSH (a startup event that began in Helsinki in 2008; details in Part 2 of this series), which we will visit later. The environment at Aalto University, born from the merger of three schools, and at Startup Sauna, where "co-creation" is highly valued, provides significant support for students to launch startups with flexible thinking.

Diversity isn't just about welfare; it's a "possibility" to expand business.

So, what exactly is this "Sauna-style" way of thinking for creating new businesses? Summarized in three points:

1. 1. "Tolerance" for embracing diverse values
2. "Creativity" that fuses different values to generate new value
3. A "process-oriented" approach that moves forward without fear of failure, premised on learning from it

The reason Finnish students aren't afraid of failure isn't just because they receive process-focused education from a young age, which teaches them that failure is a stepping stone to learning. Equally important is the robust support system in place for those who fail. In other words, national policy plays a significant role in fostering these three ways of thinking.

We live in an era where "diversity" – encompassing gender equality, LGBTQ rights, disability, work styles, and family structures – is increasingly emphasized. Yet, it often remains framed as a "welfare policy," with corporate involvement frequently seen merely as part of CSR initiatives. Finland, however, demonstrates that embracing diversity holds the potential to expand business beyond the confines of welfare frameworks. There is much to learn from this environment where "the fusion of diverse values" occurs across all aspects—education, business development—sparking new innovation. Next time, we'll focus on reporting from our visit to "SLUSH," where various Finnish startups exhibit.

"Sauna-Style" Thinking: Three Essential Perspectives for the Diversity Era

1. "Tolerance" for Accepting Diverse Values
2. "Creativity" to Fuse Different Values and Generate New Ones
3. "Process-Oriented" Approach: Moving Forward Without Fear of Failure, Learning from It

[Call for Participants] "Nordic Open Innovation" Conference!

This event introduces the ecosystem of Finland, a leader in open innovation, covering its cultural, geopolitical, and economic background, along with case studies addressing societal challenges. It also features a panel discussion with Japanese companies that visited Finland, sharing their findings and how to apply them to business in Japan. Participants will explore approaches to open innovation and new ventures utilizing their own assets from these diverse perspectives.

[Event Overview]
Organizer: Dentsu Inc.
Date & Time: Monday, January 27, 2020, 4:00 PM - 5:30 PM (Doors open: 3:45 PM)
Venue: Dentsu Inc. 14F Open Session Lounge (Inside Dentsu Inc. Headquarters, 1-8-1 Higashi-Shinbashi, Minato-ku, Tokyo)
Capacity: 50 people (※Advance registration required. If oversubscribed, spots will be allocated on a first-come, first-served basis)
Participation Fee: Free

For details on the conference content and how to apply, please see the application form.

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