In 1977, he was appointed coach for his former club of Kalmar FF, a job he held for two years before switching to local rivals Öster IF.
Despite a loss in the group stage to later tournament winners France, Denmark managed to go through to the final 16 where they put an attractive style of football on display, beating Nigeria 4–1 before losing out 3–2 in the quarter-final to the later silver medalists from Brazil.
"Bosse" could not live up to the result and play at the 1998 World Cup and two years later at Euro 2000 in Belgium and the Netherlands.
In 1999, Bo Johansson had made public that he wouldn't continue with the team after the tournament but he always remained popular.
Totally, he coached the Danish national team throughout 40 matches, resulting in 17 victories, nine draws and 14 losses.