Vous êtes sur la page 1sur 22

J N K P I NG I N T E R NAT I O NA L B U S I N E S S S C H O O L

JNKPING UNIVERSITY

L e a d e r s h i p C h a n g e s i n Fa m i l y
Businesses
A Case Study of IKEA

Paper within Leadership


Author:

Borvander, Annelie
Oore, Jasmine
Praski, Trent
Samuelsson, Sandra
Tireus, Carl-Johan

Tutor:

Mllern, Tomas

Jnkping December 1999

Table of Contents
1 Introduction..............................................................
1.1
1.2

Problem discussion......................................................................
Methodology................................................................................

2 Theories.....................................................................
2.1
2.2

Leadership and culture in family businesses..............................


Transformational Leadership......................................................

3 IKEA...........................................................................
3.1

Ingvar Kamprad...........................................................................

4 Analysis......................................................................
5 Conclusion.................................................................
References....................................................................

Introduction

Family businesses are special in character and culture as compared


to other businesses. Their goals and strategies are, to a great extent,
determined by the owners goals for the business. These personal
objectives play a vital role for the companies progress and also for
the realization of the leader change process. The founder of a family
business is most likely an individual who has realized a dream and is
often entrepreneurial in character. This person is usually very
devoted to the company and wants to have a high degree of control
over all areas within the business. It is very common in family
businesses that the owner influences the whole company culture
since he/she is both the owner and the leader. Many owners of family
businesses are very charismatic leaders and are the company
itself. While this can be good in certain situations, problems may
arise when the owner steps down (Johansson & Falk, 1998).
IKEA is an example of a very successful family business with a
charismatic leader/owner. IKEA is a Swedish firm that was founded
in 1943 by Ingvar Kamprad. The company has grown rapidly since
then and now has more than 140 stores in 29 countries. The success
of IKEA depends to a great extent on three factors:

Ingvar Kamprad as a leader and entrepreneur.

Ingvar Kamprad as the man behind the business idea.

The company culture, which is influenced by Ingvar Kamprad.

What can be understood from these success factors is that Kamprad


plays a big role in the success of the company. He has always been
the centre of the business, and will probably continue to be until
he passes away. Today Kamprad is no longer the CEO of the
company, but he is still the owner and remains very much involved in
the organization (Bjrk, 1998). Within this paper we are using the
terms owner, founder, and leader interchangeably when
referring to Ingvar Kamprad, as he has, over time, encompassed
these roles. It should be mentioned, however, that the ownership of
IKEA today is a complex structure.

1.1 Problem discussion


Many family businesses provide economic stability and career paths
for their founders and the coming generations. However, they can
also give rise to numerous conflicts, especially when it is time for
ownership or leadership changes. Since many of the owners of family
businesses are also the leaders, in many cases this can cause
problems when the owner is too old or tired to continue running the
business. At some point in the business development path the

owner/leader will encounter the possibility of a shift in the leadership


post. This change can be a very demanding process. The owner has a
range of choices, including letting other family members take over,
selling the company to an outsider, or remaining the owner and
letting an outsider take over the CEO post (Johansson & Falk, 1998).
If the family business has had a very charismatic owner/leader who
has influenced the company culture to a great extent, it can be even
harder to change leaders. The problems can be magnified if the
owner takes in an external CEO, but remains the owner. Even with
an outside CEO, the owner may still have difficulty letting go of the
decision-making process and other activities within the company.
This can lead to conflicts between the CEOs way of running the
business and the owners view, with the owner always having done it
in his/her way and continuing as the informal leader. Even if there
are no conflicts between the CEO and the owner, having an owner as
an informal leader can still create problems. If the owner has
formed the organizational culture and continues to maintain it, even
without being the formal leader, problems occur when the owner
withdraws totally or dies. What will happen then to the organization?
How will the success live on? It is not necessarily a negative change
for an organization to lose the owner; perhaps the original owner
could not see the need for crucial changes. However, a withdrawal
can also be fatal for the company, if there is no adequate
replacement for the owner available.
IKEA is a large family business with a unique company culture,
largely influenced by Kamprad. Kamprad has been involved in the
company as a leader from the start, but handed over the formal
leadership role to an outside CEO a couple of years ago. He is still
the owner and very much an informal leader for the company. He has
always been the front figure for IKEA and is a very charismatic
leader. As long as he is a part of the company, the culture and vision
can live on, but there is a question as to what will happen when
Kamprad ends his involvement in the organization. This question has
been raised by IKEA itself, and individuals within the organization
are seeking solutions to this problem. What should IKEA do to handle
this eventual future problem? These questions have led to our
purpose:
Our purpose is to investigate what kind of problems might occur
when Ingvar Kamprad ends his involvement with IKEA and to look
at how IKEA handles these eventual future problems.
We are going to look at the problems of leadership changes in family
businesses in general and in application to the IKEA case. We are
also going to interview a few employees at IKEA to see if and how
they are being prepared for the absence of Ingvar Kamprad.

1.2 Methodology
This paper is done based on the intention of giving the reader some
insight in what kind of problems a family business might encounter
when the founder who created culture and have the vision
disappears from the company. To get a deeper understanding of our
chosen topic we decided to focus our study on IKEA and Ingvar
Kamprad. Due to this our choice for the empirical research for the
project became an explorative case study. The case study approach is
appropriate to use in empirical studies with descriptive character. It
makes it possible to use different methods for the collection of data,
like interviews, direct observations and also secondary data like
historical material. (Lekvall & Wahlbin, 1993)
The research was carried out through two semi-structured phone
interviews and gathering of secondary data. Both interviews were
held with employees of IKEA International in Denmark. The first
interview was with Maria Tirus, Assistant to the CEO, and the
second with Ree-Yong Yuen, Developer in the Culture and
Competence Department. The reason for having semi-structured
phone interviews is that it makes it possible to have a more open
conversation while still having some basic guidelines to go from. The
secondary data were collected through books, Internet and other
papers written about the topic chosen. After all the information
gathering and searching the material was systematically compiled,
analyzed and interpreted.
According to Eriksson and Wiedersheim-Paul (1997) there are two
basic requirements that scientific document have to fulfil validity and
reliability.
Validity means how well the researcher succeeds to link the theory to
the empirical evidence, if the study succeeds to study what it was
intended to study. In our case it is important to point out that each
situation of leadership change in family business is different due to
the characteristics of the leader. This inflicts a problem; it is not
possible to write a complete guide for how to act when a strong
leader leaves the involvement of his/her creation. So not being able
to derive more than two interviews should not be seen as all that
negative. It is a paper devised to shed light on a still less travelled
road.
Reliability means that a measuring instrument should give reliability
and stability in the measuring results. A high degree of reliability
presumes that the result must be irrespective of the researcher. One
thing we did to obtain high reliability in the study was the use of
secondary data from Internet, books and other papers. Some
limitations that have to be remembered are the judgements and

ideas presented are highly personal and other people could interpret
the situation differently.

Theories

In this section, we are going to present some theories for later use in
the IKEA case, in order to give the reader an overall view on our
topic and a better understanding of our analysis. First, we will
discuss the culture and characteristics of family businesses and the
problems that can occur when there is a change of leader/owner in
these kinds of businesses. This will later be connected to IKEA to see
if and how they can handle these eventual problems. We will also
discuss the concept of transformational leadership and, in the next
section, apply it to Ingvar Kamprads leadership style.

2.1 Leadership and culture in family businesses


In a family business, it is very much the founder who creates the
company culture, so the presence of strength and character in the
founder is one of the most significant factors in the development of
the culture. Founders often have a dream or vision that they set out
to accomplish, and may act in almost a religious fervor in carrying it
out. The founders strong belief in their tasks creates a kind of
magnetism to which followers are drawn (Dyer, 1986). It must be
noted, however, that charismatic leaders may actually become a
problem for the company: if the culture is centered around the
leader, once the leader abdicates the formal leadership role, it is
difficult for the company to sustain the culture. The maintenance of
culture is necessary in order for the company to reach its goals since
culture behaves as a compliment to formal controls. However, as a
business grows, the family becomes less cohesive and the culture,
less pronounced. This is especially true once the founder has
relinquished leadership duties. Therefore, there is an increased
emphasis on cultural awareness within the company and, possibly,
even a redefinition of culture as a new leader steps in (Engman &
Torstensson, 1998).
The family spirit is determined by the present attitudes, values and
norms in the company, while the expressed family values create a
common purpose for employees and help to establish a sense of
identification and commitment. The employees of a well-run family
business feel like a part of the family and the atmosphere is usually
much more caring than that of a publicly held organization. Within a
family business, the owner/leader has a certain leadership style that
he/she thinks is the most successful one. This creates a continuous
pattern in the leadership style throughout the life of the company,
which is seen to be an advantage in the culture of a family business
(Kets De Vries, 1996). Within this family spirit is the need for trust

and, as Kets De Vries (1996) suggests, trust is one of the pillars of


corporate culture. It is important to have trust between family
members with respect to job descriptions and contributions.
In addition, the importance of combining the goals of the company
with those of the family is increased. Leaders must be able to
balance important issues between the business and the family in
order to resolve potential problems that may occur (Thornton, 1998).
Now we examine the nature of family businesses and the potential
pitfalls that may result when a transfer of leadership exists. As noted
by Ward, 1987, keeping a family business alive is perhaps the
toughest management job on earth. He notes that only 13 percent
of family businesses last through the third generation and less than
two thirds survive the second generation. It is common for the first
generation to build the business only to have the second generation
harvest it and the third generation either auction what is left or start
from scratch (Ward, 1987).
Family businesses are increasing in importance as new generations
feel that having a job is no longer good enough. People want to
have more say in their life and running their own business can help
them plan their own destinies (Kets de Vries, 1996). In addition,
they are unique in that they face special challenges in times of
leadership transitions that other businesses do not. First of all, many
family businesses are small and, therefore, lack financial capabilities
and staff skills that larger firms often possess. Also, disputes among
family members are not hard to find, and are often more heated than
public held businesses. Because of these, the transition process must
be especially smooth and efficient in family businesses. (Friedman &
Friedman, 1994)
Second, internal family business successors often lack the tools of
planning for the successful future of both the company and family.
As the business matures and the family demand for money grows, it
is imperative that new leaders reinvest in strategies that will
promote future growth for the company, and keep these strategies
separate from family problems. Often, family members are tempted
to cash in their profits late in the life of the business rather than
investing in growth. These tools are developed through extensive
business planning, which for business owners means change and,
therefore, the compromises that accompany change. Owners are
often reluctant to change proven strategies of the past for those that
are less certain (Ward, 1987).
In the transition process, family businesses often make the mistake
of not preparing the successor appropriately. This is particularly
true when heirs are direct family members who have been given
broad titles, such as executive vice president, but are then left alone

to learn about the business and end up drifting without assuming any
authority whatsoever. Then, on the date of succession, the heir is
handed over all responsibility and is expected to run the company
successfully. A better approach is to give responsibilities to the
successor incrementally, and provide clear job descriptions for both
the founder and successor during the transition process (Aronoff &
Ward, 1992). The John Deere Company acted in this manner when its
leadership was shifted from and internal to an external position. The
successor had worked in the company for 32 years and had become
well accustomed to the corporate culture and was, therefore,
properly prepared for his leadership duties (Rose, 1995).
The owner him/herself may be at the root of succession problems in
family businesses, primarily due to reluctance to give up authority
held since the inception of the business. As noted in Ward, 1987, the
single most important factor in the success of any transition is the
business owner. Essentially, the owner is the key figure in making
the transition rough or smooth. Ward describes phenomena such as
semi-retirement, which refers to those owners who only take a few
months off from their leadership duties each year, and return of the
parent, where the owner returns to the business after some years of
unfulfilling retirement.
The founder may also experience obstacles of his/her own. Whether
the successor is from within the family or external, it is often difficult
for the owner to resist taking credit for the accomplishments of the
successor, and may even feel like a failure if the successor has
performed exceptionally well. In addition, founders may ask
questions about the business such as what is the value of this
business apart from me? How can I communicate what I do to a new
generation of management? How do I move functions to people?
How can I pass on my skills? How do I transfer my business
relationships? (Aronoff & Ward, 1992). Furthermore, they must
prepare to let go of power and confront the mortality issue in real
terms Consequently, it is important for founders to find new roles,
ones that match their unique capabilities and maximize their name
and reputation (Kets de Vries, 1996)
Reluctance of family business owners to step down has its
consequences on the business. These include confusion among
employees as to whom they should take orders from, and fear that
unclear leadership may mean a potential sale of the business,
resulting in a possible loss of work for the employees and, thus, lack
of motivation. The consequences are not only with employees, but
also with the successors who may have just become accustomed to
their new positions. They may feel reluctant to make changes,
knowing that the owner is always looking over their shoulders. In
fact the largest problem with successors, according to a father-son
study, is the letting go of the older generation (Ward, 1987).

Often, the problem of new leadership is heightened when successors


find the need to integrate new ideas with old, and integrate their
own strategies with existing ones. If it has been some time since the
owner has stepped away, the business has probably grown
considerably. It is noted that ideals of the original owner and the
successor may be intermingled, since the owner has probably started
the business in an entrepreneurial fashion through instinct, whereas
the successor must use planned and administrative efforts
(Friedman, 1998).
Further important factors in the transition process are the
characteristics of the successor. As noted in Aronoff & Ward, 1992, a
leader with charismatic, visionary ideals is not required (as a
successor) and may even be detrimental to the long-term growth of
the company. Its not that the leaders charisma or brilliance is not
valuable. But as the world and organisation grow, the companys
boundaries must become permeable enough to allow ideas and
information to flow in from outside sources. Corporations often find
difficulty in maintaining momentum after the departure of highly
influential leaders. This is referred to as post-heroic leader stall
and should be avoided by not creating a cult of personality of the
leader. Thus, the core ideology of the company should be formulated
in a specific, concrete manner (Aronoff & Ward, 1992).
Since transitions are often over a longer period of time in family
organisations versus non-family ones, family businesses may not see
a change in leadership for a whole generation, as opposed to the
typical five to seven years in non-family businesses (Rose, 1995). It is
important, therefore, that new leaders enter the business in order to
bring fresh, external experiences and insights into the business
(Aronoff & Ward, 1992). If leaders change less frequently, there is a
greater possibility of stagnation in growth due to the lack of fresh
ideas. One of the most important lessons that successful family
businesses are aware of is the need to combine strategic revolutions
with changes in leaders. It is often easier to challenge traditional
ideas and implement change while the passion in new leaders is still
alive (Ward, 1987).
A final concern in regards to the transfer of leadership in family
businesses is the fact that issues of leadership succession are often
more fervent within family organizations. Consequently, many
families end up selling the company rather than getting involved in
the succession process (Friedman & Friedman, 1994).

2.2 Transformational Leadership


Transformational leadership is, according to Bass & Avolio in
Northouse (1997), concerned with the performance of followers and
also with developing the followers to their fullest potential.
Transformational leaders are very charismatic and good at

motivating their followers. There are five elements that are


characteristic of transformational leadership, shown in figure 2.1. We
have modified Northouses model (1997) in that we have divided
charisma and idealized influence into two separate elements, since
we believe that they should be attributed equal importance.

Attributed Charisma

Individualized
Consideration

Intellectual Stimulation

Idealized Influence
Transformational
Leadership

Inspirational
Leadership

Figure 2-1 Elements of Transformational Leadership (modified version of


Northouse model, 1997)

Attributed charisma is one important element of transformational


leadership. Charisma is a concept that was first introduced by Max
Weber in 1947. He saw charismatic leaders as being highly esteemed
people possessing exemplary qualities. Charismatic leaders display a
sense of power and confidence in themselves. They also remain calm
during crisis situations. They are good at articulating goals and
provide reassurance in the face of obstacles. Charismatic leaders
have extraordinary influence over the employees and their followers
usually feel an attraction and a will to follow them (Bass &Stogdill,
1990).
Idealized influence is another factor that characterises a
transformational leader. By this the leader shows his/her most
important values and beliefs to the followers and tries to obtain
everybodys commitment to these values and beliefs. The leader also
considers the moral and ethical consequences of his/her decisions. At
the same time the leader displays a conviction in his/her ideals and
values and takes a stand on difficult issues. (Ibid)
Intellectual stimulation involves the leaders stimulating the
followers to be creative and question what has not been previously
questioned. These leaders encourage non-traditional thinking to deal
with traditional problems and supports their subordinates when they
try new solutions (Northouse, 1997).

A leader that shows inspirational leadership looks optimistically at


the future and provides continuous encouragement for followers. The
leader expresses confidence that the company will achieve its goals.
An inspirational leader creates a vision for the future, which he/she
motivates down to the followers (Bass & Stogdill, 1990).
Individualized consideration is when leaders view followers as
individuals rather than as members of a group. These leaders listen
to their subordinates concerns and needs. They serve as coaches
and provides useful advice for the subordinates development
(Kellerman, 1984).
Problems with transformational leadership
Most research shows that subordinates perform better and are more
satisfied with their work when they have a transformational leader
(Bass & Stogdill, 1990). If this is so, are there any negative aspects
associated with having a transformational leader? A transformational
leader is very charismatic and concretizes a vision for his/her
followers, thereby raising their excitement and effort. This is, in most
cases, seen as positive, but what happens if the followers put too
much faith in their leader and cannot handle situations without
him/her? There is the danger of having a transformational leader in
the way that the subordinates look up to the leader and see him/her
almost as a deity. The followers then become too dependent on the
charismatic leader, relying on him/her to inspire and motivate them
to perform. The subordinates feel comfortable and dedicated to the
leaders vision. This dependence of the subordinates can be
problematic when the transformational leader must be succeeded,
leaving the subordinates with a feeling of hopelessness and fear of
the future.
This problem might be amplified in family businesses, since the
owner is usually the one that has created the whole organizational
culture. The owner is the one that had and realized a vision in the
creation of the company. The owner also formed the business idea of
the company with the basis of the organizational culture derived
from personal values. When this owner/leader steps down, finding an
equivalent replacement that can carry on the company culture (if this
is desirable), is clearly a challenge (Johansson & Falk, 1998).
All companies that have had a transformational leader must be
aware of the problems that might arise when their leaders disappear.
How can the company replace them, and do they want to? How
should they handle the problems of keeping the company culture
alive even when their leader is gone? In the analysis, we look at if
and how IKEA approaches this problem.
We will, in the next section, use some of these theories and models in
application to IKEA. First, we give some background information on
IKEA, and then we examine Kamprads leadership style more closely.

IKEA

Ingvar Kamprad founded IKEA in 1943. In 1954, IKEA had 15 coworkers and, since then, IKEA has expanded to include a number of
home furnishings stores and support companies around the world.
Today IKEA has more than 50 000 co-workers around the globe. In
1954 IKEA had an annual turnover of 2 billion USD, and in 97/98 this
figure was 7016 billion USD. The IKEA group today is a mixture of
many
different
companies
and
foundations
(http://www.ikea.com/content/).
Inter IKEA Systems B.V. is the owner and franchiser of the IKEA
concept. IKEA retailers worldwide operate on a franchise basis. Most
IKEA retailers belong to The IKEA Group, which also includes the
product development center, IKEA of Sweden AB and IKEA trading
and wholesaling companies. IKEA Group activities are co-ordinated
by IKEA International A/S in Denmark, while The IKEA Group is
owned by a charitable foundation in the Netherlands. IKEA of
Sweden AB is responsible for the entire IKEA product range on
behalf of Inter IKEA Systems B.V.. All products in the IKEA range are
distinguished by the label "Design and Quality, IKEA of Sweden"
(Ibid).
So what made this story possible? In a book by Stellan Bjrk (1998)
IKEAs success is explained as a triunity or a trinity the
entrepreneur, the business idea and the company culture. And just
like the holy triunity, which is born from the father, IKEA grew from
its founder, Ingvar Kamprad.
The entrepreneur
In 1986 Ingvar Kamprad left his post as CEO of IKEA and was
replaced by Anders Moberg. Today, Ingvar is still very active within
IKEA as a chairman of the boards within the IKEA group. At the age
of 73, Ingvar Kamprad can look back at an exceptional achievement.
The company went from owning one small furnishing shop in lmhult
in 1943, to more than 140 stores around the world today. This makes
him one of the worlds greatest entrepreneurs (Ibid).
The business idea
IKEAs business idea is to help create a better everyday life, which
means offering a wide range of home furnishings that combine good
design, good function and good quality with prices so low that as
many people as possible can afford them.
IKEAs strategy has always been a low-price one and this is why
customers keep coming back. According to Bjrk (1998), there is a

10

love-hate relationship between IKEA and its customers. Customers


say, never again will I stand in those lines, but still return again
when it is time for a new kitchen table. Kamprad is the one guarding
this low-price strategy. There are always people within the company
pushing to raise the profit margin, but Kamprad maintains that it is
better to make money on low prices and high volumes. He believes in
providing people with quality home furnishings at low prices, while
weakening the competitors marketshare.
How is it possible for IKEA to sell home furnishings at 30-40 percent
cheaper than its competitors? It is not the objective of this report to
look into the financials of IKEA, but the answer lies in the concept of
cost awareness. Ingvar Kamprad writes in the furniture dealers
testament: Waste of resources is one of mankinds biggest
diseases.

The company culture


IKEA has a very strong company culture and this is reflected in
everything from the companys dress code and cars, to the way in
which IKEA does business. Kamprad believes that most things still
remain to be done - a glorious future! Time is your most important
asset. Split your life into 10-minute units and sacrifice as few as
possible to furniture (Sjberg, 1998). The corporate culture of IKEA
is built on this philosophy all the way from design teams to suppliers,
and in the end to its customers. A continuous strive for improvement
in all areas of the value chain is an effective way to shape the
industry to better fit IKEAs future strategies.
Miriam Saltzers writes in her report Identity across Borders (1998)
about how IKEA works in order to safeguard this special IKEA
spirit. She writes that in the 80s, IKEA introduced a special training
seminar called IKEA Way. Today, these training programs are held
a couple of times each year as weeklong seminars in lmhult. Young
managers from all IKEA units around the world meet Ingvar
Kamprad who talks about IKEAs philosophy. During these days, the
participants are given lectures on such topics as IKEAs history, its
product range, the distribution system, and the human resource idea.
On the last day there is a small ceremony at which the participants
receive a pin: a miniature IKEA insert key. This is a token of having
become an IKEA ambassador, a culture-bearer with a license to
further spread the IKEA culture in his or her own organisation.
Another way the IKEA spirit is spread around the world is through
Kamprads visits to stores world-wide. A visit by Ingvar is a big event
all over the whole world. Normally he arrives at seven oclock in the
morning and does not leave until six oclock in the evening. During
the day he meets all the employees, and he always has a person with

11

him that whispers the employees names in his ear so he can address
them by their first names when they shake hands.
So how is this IKEA culture shown?
The dresscode of IKEA is often noted; nobody wears suits or ties and
this is one of, and probably the best known, visible ways that the
IKEA culture is shown. Bjrk (1988) recounts in his book some of the
tools the IKEA management uses to show the IKEA Way.

Position

Tool

Risks

Humility

Leisure-wear

Simplicity

First-name
each other

Efficiency and low cost

Symbolic policies, such Not always appreciated


as only flying economy by those who must
class and staying at travel a lot.
cheap hotels.

basis

Almost a uniform
with In some countries this is
too much intimacy

Table 1 Tools for showing the IKEA culture (Bjrk, 1988)

3.1 Ingvar Kamprad


Ingvar Kamprad was born in Elmtaryd in 1926. Kamprads interest
for business was evident at an early age when he began selling
matches as a little boy, then expanded the business to sell fish, and
later, pencils, ballpoints and watches. During the whole school period
he maintained his business and his strong commercial interest
prompted him to register his own commercial company in 1943 in
Agunnaryd: IKEA (Torekull, 1998).
Kamprad established a testament for the company in 1976, with nine
different commandments. These can be seen as Kamprads vision for
the company and for what the employees should strive towards. The
commandments are: (Salzer, 1994)
The product range- our identity. IKEA shall offer a wide range of
home furnishing items of good design and function, at a price so
low that the majority of people can afford to buy them.
The IKEA spirit, a strong and living reality. The true IKEA spirit is
founded in everybodys enthusiasm, their constant will to renew,
their
cost-consciousness,
their
willingness
to
assume
responsibility and to help, on their humbleness before the task
and on the simplicity in their behaviour.

12

Profit gives us resources. The aim of accumulating the financial


resources is to obtain the best result in the long run. IKEA shall
have the lowest price picture and marry it to good quality.
Kamprad is guiding them to develop products in a more
economical way, to purchase better, and to save on all costs
persistently. This is IKEAs secret and the reason for their success.
To reach good results with small means. Waste of resources is a
moral sin at IKEA. Expensive solutions to all kinds of problems are
often signs of mediocrity.
Simplicity is a virtue. If many people have to function together in a
society or in a company there must be rules. The more
complicated these rules, are the more difficult they will be to
observe. Simplicity and humbleness characterize relations within
IKEA, with their suppliers, and with their customers.
The different way. By daring to be different, IKEA finds new ways.
By refusing to accept a pattern just because it is established, they
get further. A keyword in the organization is why.
Concentration of energy- important to our success. Kamprad
states that they cannot do everything everywhere at the same
time.
To assume responsibility- a privilege. The IKEA-family wants to
keep the human beings central, and supporting each other. They
have their rights but also their obligations. Freedom with
responsibility. All in the organizations initiative and their ability
to assume responsibility and make decisions.
Most things still remain to be done. A glorious future! Happiness is
not to reach ones goal but to be one the way. IKEAs glorious fate
is to be at the very beginning in all areas. Time is the most
important asset.
Behind the testament is a huge passion for the company and the
company idea. The testament is made very thorough and the spirit of
Kamprad is shown in all nine commandments. You can both sense his
feeling for humanity where the people are central. Kamprad believes
that kindness, fellowship and helping one another are important.
Also, the Lutheran basis of valuation, like responsibility and honesty,
can be sensed. These can be said to be IKEAs short- and long-term
goals and are all influenced by Kamprads values, standards and
ethics.
As established that well-run family businesses have caring
atmospheres (Kets De Vries, 1996), Kamprads style is in line with
this notion: Bjrk (1998) writes that Kamprad is known as a leader
who likes to hug his co-workers, but is also capricious and ironic.
Former co-workers have, in interviews, described Ingvar as a ruler

13

that wants to draw in his closest co-workers into something


equivalent to a religion sect with himself as the preacher, which is
also shown in the testament.
Kamprad is a man that cares about everything that has to do with
IKEA, the business as such, as well as the people within it. Some
people call it possession, which can be interpreted in both a negative
and positive way. He is very enthusiastic, has a strong will to
continually improve, and he also wants to do his best with his
creation, IKEA. In his leadership style, his thoroughness and
attention to detail is evident. He believes that it is not enough to just
focus on overarching, strategic questions. One loses the sense of
what is really happening in the company and on the market. He is
said to be a very down-to-earth leader and sees the importance of
close contact between the management and the business of IKEA,
the customers, and the products. He is described as being both very
determined and soft in his way. He can be somewhat slow in his
decision-making, but as soon as he is certain of something, he
realizes it with great energy. He is known to be involved in a little bit
of everything (Sjberg, 1998).
Kamprad can be seen as a charismatic leader. He possesses strong
values, is self-confident, and seems to have a strong desire to
influence others. He is a strong role model for the beliefs and values
he wants his employees to adopt, and he also articulates the goals
for the organization. Some of his goals are seen in the nine
commandments he created and these are also intended to motivate
and guide the employees in their work. From the very inception of
IKEA, he has been the centre of the company and will continue to be
so until he dies. He sees IKEA as a big family and speaks to them as
a father speaks to his children. Due to his strong influence from the
beginning, the company culture is more or less a reflection of his
beliefs and his vision.
In the model below, we summarize the leadership style of Ingvar
Kamprad according to the transformational model shown in the
previous chapter.

14

Attributed CharismaShows self-confidence,


power and makes his
employees devoted.
Individualized
Consideration- He treats
everyone in the
organization as an
individual

Ingvar Kamprad

Intellectual StimulationHe is an entrepreneurial


leader that keeps asking
why they do things the way
they do.

Idealized InfluenceInfluence his values and


beliefs on his followers.

Inspirational LeadershipHe creates and passes on a


vision, and believes in a
good future.

Figure 3-2 Ingvar Kamprad's leadership style

In the next section, we examine more closely what problems IKEA, as


a family business, might encounter when Kamprad ends his
involvement with IKEA, as well as how they handle them. Some of
these problems have already been solved, but there are still issues to
be considered.

Analysis

As noted by Ward (1987), the toughest job for a family business is to


keep it alive after the founders step down. Often family members
lack the tools of planning for the companys future and become
tempted to cash in. Since the 70s, Kamprad has, in interviews,
stated that he is planning for his death and, during the 80s, he
cleaned up the IKEA structure in a way that would give IKEA
eternal life (Bjrk, 1998). He did this by setting up a variety of
foundations and today The IKEA Group is a mixture of foundations
and companies spread all over the world, as shown in appendix A.
With these constellations Kamprad has, according to Bjrk (1998),
succeeded in giving IKEA eternal life, by spreading the risk, creating
a capital reserve, and ensuring that the Kamprad family will be
economically secured. Thereby IKEA has avoided many of the
pitfalls, such as the temptation to cash in, noted by Ward (1987).

15

In 1986 Kamprad announced that IKEA appointed a new CEO:


Anders Moberg, who had worked within IKEA for 15 years. Ward
(1987) addresses the problem of reluctance to relinquish the
authority that has been a large part of the owners life since the
inception of the business. According to Sjberg (1998), Kamprad did
state that this decision was one of the toughest decisions he ever had
made, but was convinced that he and Moberg would find a way that
would make it easier for him to gradually let go. Ward (1987)
describes a problem due to the reluctance to give up involvement.
He writes that successors may feel reluctant to make changes
because the eye of the founder/owner is always over their shoulders.
In an interview with Maria Tirus, assistant to the CEO at IKEA, she
said that Kamprad still is very much involved in running the
business. This can be seen as reluctance to give up authority, but it is
not seen as a problem within IKEA, since Kamprad is considered a
big asset and takes decisions in consultation with the CEO.
A further important and, from our perspective, more interesting
factor, is the characteristics of the successor. Aronoff & Ward (1992)
write that a charismatic leader with visionary ideals is not required
as a successor. As far as the CEOs responsibilities, this might be
true for IKEA, but as Aranoff & Ward (1992) noted, corporations
often find difficulties in maintaining momentum after the departure
of highly influential leaders. This post-heroic stall could be avoided
by not creating a cult of personality of the leader, and this is where
we anticipate some potential problems for IKEA. Kamprad is still the
symbol of IKEA and very much its informal leader. IKEA can also see
this eventual problem in its organization and tries to solve it by
documenting the history of IKEA and video recording Kamprad.
Individuals within the organization claim that they are not trying to
replace him, as that would be impossible, but that they want to keep
him alive through book and films (Tirus, 1999).
The main problems we identify in the IKEA case are the cultural
problems that might arise when Kamprad is gone. Kamprad had a
brilliant business idea when he founded the company and he was the
one that created the vision for where the business was heading. As
we described previously, Kamprad was, and still is, a
transformational leader, although his leadership role is not formal.
A large problem for family businesses is that the company culture is
built on the founder and his/her vision. The founder might have
problems giving up his/her authority, since the business has been a
large part of their life. This problem is relevant in the IKEA case
since Kamprad has had difficulties in letting go. He is still a senior
advisor at Ingka Holding, which is the decision-making unit of the
IKEA group, and he influences the culture in many ways. When the
CEO has more time to focus on the business, while the informal

16

leader, in this case Kamprad, can maintain the culture within the
organization, this can also be seen as advantageous.
IKEA sees the cultural issues as their main concern for the future.
According to Tirus, Kamprad is seen as an asset when it comes to
keeping the culture alive. It is, according to her, important that the
culture stay alive, otherwise it is improbable that IKEA will survive.
Kamprad is the symbol of IKEA and the basis of the culture is that he
is the one that knows IKEA by heart. So how does IKEA look at the
future when Kamprad is gone? Who will take over his leadership
role?
Tirus says it is impossible to replace Kamprad and that IKEA is not
even trying. What they are trying to do is to keep the culture alive by,
first of all, documenting the IKEA history and everything that
Kamprad has done. There are several people working full-time with
the issues of the IKEA culture trying to keep records of everything
relevant. Another way of keeping the culture alive is through the
IKEA Way seminars. With these seminars, the management are
taught the culture and history of IKEA and are then certified to give
Mini IKEA Way seminars to their subordinates. In this way, all the
IKEA personnel get the opportunity to learn the IKEA way of doing
things.
Ree-Yong Yuen of the IKEA Culture department is responsible for the
international human resources. Her primary function in this area is
the management of the IKEA way seminars previously mentioned.
In an interview with Yuen, she explained that the seminars are a way
of ensuring that employees actually live the culture, rather than
simply reading or hearing about it. This is established through the
fact that each manager at the seminar is allowed two questions for
Kamprad. Furthermore, these seminars allow the managers to gain a
clear vision of the companys culture and understand the companys
business ideas, which they are then able to translate into their
respective branches.
In addressing the question of who will take over Kamprads
leadership role, Yuen states that no definite answer has been given
as of yet, although the CEO and the cultural and competence
manager will play crucial roles. Also, no specific plans have been laid
out in the event of Kamprads death.
Another important factor for keeping to culture alive is, according to
both Tirus and Yuen, in recruiting the right people from the
beginning. The people that start working within IKEA have to share
the same values as the existing culture. It is very important that the
future personnel share values like cost-awareness and honesty. It is
also important that the existing personnel act as good role models
for the incoming employees.

17

In a letter published in Leadarskap ekonomen, number 3 (1988),


Kamprad writes his own thoughts on how IKEAs culture will live on
after his departure. To sum up the letter, Kamprad writes:

The leaders are important. This is why we only should recruit


people that share our ideas and values.

IKEA shall have a simple and effective ideological basic education


for all new personnel.

Through IKEA Way, or in another way, we shall educate IKEA


Ambassadors who will transfer the culture within the
organization.

With intervals of five years, IKEA should have an internal


campaign with an ideological message.

This is consistent with what the employees interviewed have stated,


as well as with our own knowledge derived from the research.

Conclusion

We have determined that a number of potential problems may arise


with the transfer of leadership and, in this case, with the ending of
Kamprads leadership role. As well, the severity of the problems is
amplified by the charismatic nature of Kamprad, especially as a
leader of a family business. Although IKEA is not a family business in
the traditional sense of the phrase, as Kamprads children have not
succeeded Kamprad in managing the company, IKEA is a family
business in its spirit and culture. Therefore, the primary problem, as
we see it, appears to be one of culture and its maintenance. For the
moment, and for the near future, it appears that IKEA is well aware
of these pending problems and is addressing them through such
programs as the IKEA way. Whether or not IKEA will succeed in
maintaining the culture created by Kamprad will remain a question
until he actually ends his involvement with the organization. Our
personal belief is that the culture will be carried on by the employees
who have come into contact with Kamprad, but that difficulties will
be encountered when a new generation of employees replace the
ones who personally met IKEAs original leader.

18

References
Aronoff, C. Ward,J. (1992), Family Business Succession: The Final
Test of Greatness, Business Owner Resouces, Marietta, Georgia
Aronoff, C. & Ward, J. (1992), Preparing Your Family Business For
Strategic Change, Business Owner Resources, Marietta, Georgia
Bass, B.M. & Stogdill, R.M. (1990), Bass & Stogdills Handbook of
Leadership: theory, research and managerial applications, Free
Press, New York
Bjrk, S. (1988), Hur kan han f 12 000 anstllda att tnka
smlndskt?, Ledarskap Ekonomen, nr.3 mars 1988
Bjrk, S. (1998), IKEA, Svenska Frlaget, Stockholm
Dyer, G. (1986) Cultural Change in Family Firms, Jossey-Bass
Publishers, London
Engman, K. & Torstensson, L. (1998) How Rapid Organizational
Growth Can Affect the Corporate Culture, Jnkping International
Business School
Eriksson, L. & Weidersheim-Paul, F. (1997), Att utreda forska &
rapportera , Liber ekonomi, Sverige
Friedman, M. & Friedman, S. (1994), How to Run a Family Business,
Betterway Books, Cincinnati, Ohio
Friedman, S. (1998), The Successful Family Business, Opstart
Publishing Co., Chicago
Johansson, S-E. & Falk, M. (1998), garskiften i Fretag, Ekerlids
Frlag, Falun
Kellerman, B. (1984), Leadership- multidisciplinary perspectives,
Prentice Hall, New Jersey
Kets de Vries, M. (1996), Family Business: Human Dilemmas in the
Family Firm, International Thomson Busines Press, London
Lekvall,
P.
&
Wahlbin,
C.
(1993),
marknadsfringsbeslut, IHM, Gteborg

Information

fr

Northouse, P. (1997), Leadership- theory and practice, SAGE


Publications, California
Rose, Mary B. (1995), Family Business, Edward Elgar Publishing
Ltd., Hants, UK
Saltzer, M. (1994), Identity Across Boarders,
management and economics, Linkping university

19

Department

of

Sjberg, T. (1998), Ingvar Kamprad och hans IKEA, Gedins, Sverige


Thornton, G. (1998), Family Business: How Directors Can Manage
Key Issues in a Family Firm, Director Publishing Ltd., London
Torekull, B. (1998), Historien om IKEA, Wahlstrm & Widstrand,
Finland
Ward, J. (1987), Keeping the Family Business Healthy, Business
Owner Resources, Marietta, Georgia

Electronic sources
http://www.ikea.com/content/

Personal Interviews
Tirus, Maria. Assisant to the CEO, IKEA International, Denmark.
Yuen, Ree-Yong. Developer, Culture and Competence Department,
IKEA International, Denmark. (0045 49 155000)

20

Vous aimerez peut-être aussi