Johan H. Andresen was almost certain to join the family business. The Norwegian investment company had passed from father to son for five generations since its first industrial investment in 1849, the J.L. Tiedemann’s tobacco company. On taking the top job in 1998, he transformed the company into one that develops successful enterprises to look beyond financial returns and make a difference in society.
“Running the family firm wasn’t inevitable but it was highly desired by my parents and our staff,” he explains. “I was raised to be the owner and Chief Executive, but still needed credibility in the business world and the right education to do the job and that was why I studied at Rotterdam School of Management.”
Like his ancestors, Johan was keen to complete his education outside Norway; his father had been to Harvard and his grandfather studied in Germany. He chose a liberal arts degree at Dartmouth College in New Hampshire to broaden his experience of the world before returning to Europe for the MBA and his eventual role as CEO.
“Studying abroad introduces you to different cultures, gives you new insights, and promotes personal growth. I would recommend it to anyone. In particular, it made me aware that our family business had to renew itself to meet new challenges. Like John F Kennedy decades earlier, I asked myself, not what the company could do for me, but what could I do for our company, in the 21st century?”
Create enduring values and leave clear footprints
Changing the company name to Ferd (a Nordic word for “a journey without an end”) hinted at the changes that lay ahead: “My aim was to develop our traditional commitment to society, culture and politics with a focus on entrepreneurship. We needed to attract the best people to become a professional investment company with a new vision – to create enduring values and leave clear footprints. Our involvement with the tobacco industry came to an end.”
Studying in Rotterdam alongside young people from all over the world turned out to be crucial. Johan had applied to several top business schools but RSM was the first to reply. The administrators rapidly arranged an interview in Chicago, where he was on a business trip, and offered him a place.
“Erasmus University Rotterdam was highly ranked and we all really wanted to be there. I remember excellent professors and some very good lectures. We worked hard and played hard. I still have friends from those days and even became the godfather to the son of one of my fellow students, who was born during the course. Rotterdam wasn’t the impressive city it is today, but I wasn’t there for the architecture! I learned how to recruit people much better than me, find out what motivates them and be conscious of cultural differences.”
Another major influence was his national service year in a rifle platoon: “Some of my friends joined the navy, got to wear smart uniforms, and travelled the world. They didn’t understand why I chose the infantry. Army life isn’t for everyone but, as a Second Lieutenant, I mastered how to cope with the anxiety and stress of military leadership to motivate the soldiers, as well as teach them how to shoot.”
It was all very new at the time
Johan’s years in charge at Ferd will be long remembered for his emphasis on social entrepreneurship. His first encounter with the idea came through Junior Achievement Norway which supports young people to engage in entrepreneurship while in school, then he met inspirational social entrepreneurs from Africa and India at the World Economic Forum in Davos who were actively changing their communities. Johan encouraged the Norwegian Government to establish a microfinance fund to empower enterprising individuals, then went to the Ferd Board and pitched his idea of setting up a company business unit to engage with social entrepreneurs.
“It was all very new at the time, but it turned out to be transformational. Companies are good at business development, strategy and governance. We provide that support to start-ups and gain so much in return. Young people with great values and high potential now want to join Ferd and get involved in what we do. In one example, we worked with a social entrepreneur to support people on the autism spectrum to use their special skills in and interest in IT and it grew from four people to 435 across 14 countries and it now has a turnover of over €40million.”
Encourage your colleagues to imagine how we can take responsibility we do not yet have
Another key opportunity for Johan was being appointed Chair of the Council on Ethics, for the Norwegian Government Pension Fund Global. The Council advises the Central Bank, which oversees the US$ 1.7 trillion fund, based on guidelines given by the Norwegian Parliament, on which companies should be observed or divested. When the country’s reserves of oil and gas run out, the fund’s returns will continue to benefit Norwegians.
Johan urges business leaders to look beyond the balance sheet and make a wider contribution. “There needs to be more interaction between industry, government and civil society. Encourage your colleagues to imagine how we can take responsibility we do not yet have. It will benefit them, their companies, and the country, and it need not cost much to do the right thing. For Ferd, it also turned out to be a very good investment.”
