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Althongh octogenarian Ingvar Kamprad, the founder child-friendly and family-centered, covering the needs of Swedish-based IKEA, is one of the wealthiest in- of all family members."11 =IKEA uses natural materials dividuals in the world, be nobetheless lives frueally. such as pale wood, natural textiles (linen and cotton), Kamprad avoids wearing suits, flies economy class, glass, clay and untreated surfaces. The natural chatactakes the subway to work, drives a ten-year-old Volvo, ter of these prodects has bestowed on them a universal and frequents inexpensive restaurants." "It has long stilitarian appeal."t been rumored in Sweden that when his self-disci- A signature charasteristic af the company is that pline fails and he drinks an overpriced Coke out of "all IKEA products-from furniture to the now fa. a botel minibac, he will go to a grocery store to buy a thoes mobile kitshem-could be packed in flat, stack. replacement." Kamprad was "born in Smaland in the south of reasiembled at bome." Interestingly,the flat-pack Sweden-a region known as bome to maby entrepre- idea foe farnitare arose by accident when an employee neurs and hard-working people, who are adepq at using took the legs off a table in order to boad ir into a cosefficiently what ... limited resources they have.-1 Kam tomer's cat. 14 prad developed an entrepreneurial spirit in his youth. WThe IKEA way of doing business combines a As a youngster, Kamprad rode bis bicycle througheat very Scandinavian embrace of paternalistic employment the neighborhood, sclling thatches, pers, and Christmas policies and a social safcty net with a hard-core drive cards to ebe local residenss." In 1943 when he was oaly for profits and market share thar bows to no competi17 years old, Kamprad used a cash gift from his farher tor, anywhere, anytime, 151KE,As uarelenting quest foe to form a company called IKEA. The name IKEA was profits retlects Kamgead's fragaliry. Indeed, Kampead's derived from Ingvar Kamptad's initials plus the firs les- thrittiness is iafused into IKEA's culnuret for example, ters of the farm and village where he grew up (Elmearyd employees become catalog models and managers share and Aguanarydl." botel rooms when they travel." "Kamprad obviously Initially, IKFA was a catalog company thaz sold appeciates whar ie takes to earn bis money and fealizes pens, picture frames, wallets, and other bargain goods. that there are no guarantees to economic sucoess tontor"Kamprad used his village's milk van to deliver his fow apart from hand work."1? products when he first started the busimes. In 1951. Kamprad foeaded IKEA on the basis of a tamIKEA began selling furniture made by local carpenters . Ily bewincss model, and the company's values are still six years later Kamprad opened the first IKEA store in based oa this model. The family business model's speSwedea. In 1985 the firs U.S. IKEA-which measared cial feareres differentiase it trom other businews models. three football fields long-opened in a Philadelphia. Typically, the owner of a family business has a strong wabarb called Plymouth Mecting." By 2010, IKEA had cntrepreneurial charactec, establishes the company's obgrown to 316 sroses around the world with 699 mil- jectives and operanioeal stranegies, and desires po coptrol lion in-person and onlise visitors." KKFA "has stores in most, if not all, of the business areas. 1NA An important thirry-three countries, whilc cantinaing to expand mat- characteristic of the fmily basiness model is the workkets in China and Russia." As stated on the company's Web sitc, "Ir|be IKEA with and are committed to the company, which boosts vision is to create a better everyday life for ... many their dedication and performance. people, We make this possible by offering a wide range As bead of the "family business, Kamprad, like many faof well-designed, fanctional home turnishing prodacts thers ieade by ecumple. As Kampead says -If there is sach a at prices so low that as many people as possible will be thing as good lealenhip, ir is wo give a aond example and II able to afford them and the company does so without have to do so fore all the IKFA emphoyees" Kamprad firmly compromising quality.-10 "Consistent with the Swedith beisves the bet ecample he can peovide foe his employees is lifestyle, the IKEA prodact range is functional, artractive, Do work hand and achere mo strict besinesi cthicx 21 466 BAMT I INTEAPERSONAL PAOCESSES ANO BEHAVIOA Another characteristic of Kamprad's leadership ap- solving small everyday problems, too, 16 Another of proach is a willingness to admit his mistakes and own his lofty pronocncements is this: "Wasting resources up to his weaknesses. Even with his long career and is "a mortal sin" =27 Kamprad promises "a better life extraordinary success with IKEA, Kamprad had his for many. 18 share of challenes. "As IKEA grew, so did Kamprads . From the mistakes and the successes, what les. problems-alcoholiom, allegations of a Nari past, deaths sons should othery-current leaders or those aspiring at a srore opening-but nothing deflected hims,"22 Kam- to become leaders-take away from lagvar Kamprad's prad dereribes "his association with the 'new Swed- experiences? ish' wartime pro-Nazi party [as] 'the greatest mistake of my life,+'2t The manner in which Kamprad dealt Discussion Questions with the revelation of his itwrolvemene with the Swestid 1. In what ways is Ingvar Kamprad a manager? In pro-Nazi party helped people to "fully acoept him as a what ways is he a leader? leader. By showing haman weaknesses rather than only 2. Describe the nature of followership that Kamprad strengths, his employee and the peneral pubbe could serms to have encoutaped at IKEA. relate to him and learn from his behavio. The cpisode also ... [shows] that lngvar Kamprad is ... a leader who really im- 3. Uheng the Lesictship Giril and its underlying leader bepacts the people around him in an inspirational and poodhavion of 'concern foe result'" and 'concern for people," eyjion the leadenhip orientition of Ingvar Kumprad. tive way, 24 Some of Kamprad's otber Icadership characteristics 4. Ue the concepts of trumsactional, transformational. inchude humblenes, a caring nature for IKEAs cmploycharianatic, and authentic leaders to desribe the es, a commitment to simplicity and frupality, and a ceekeaderhhip of Ingvar Kamprad. stant desire for renewal. 5. Whar are the key leadership leswas provided by At different times throughout his carees, Kamprad Kamprad's experiences? has become reflective about what he has accomplished 6. What skills would you personally aeed to develop and be procecded to jot down bits of his management or sefine to become a leader like Kamprad? What could you do to develop of tefine these skills? asking why we ate doing this or that, we can find new paths. By refusing to accept a pattern simply becase it is well established, we make progress: We dafe to do it a different way! Not just is large matters, bet in Chapter 12 Case References wiscartictes.rom'l Ri 30411. Mar 1,2004in. Herend Jaly 17 aist Marob 2030,4765