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IKEA - Organizational Leadership with a Swedish Twist

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Jamal Akbar

on 11 March 2011

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Transcript of IKEA - Organizational Leadership with a Swedish Twist

Leadership with a Swedish Twist The IKEA Way Responsibility beyond
home furnishing A better start for 100 million children

IKEA supports programs that improve the lives of children in need through health, human rights and education. Soft toys fund projects

IKEA customers contribute to improved education for millions of children in Africa, Asia and Central and Eastern Europe through the annual soft toys campaign. Social Responsibility
The IKEA vision is to create a better everyday life for people. This includes doing what we can to help create a world where we take better care of the environment, the earth’s resources, and each other. We know this continuous improvement is a never-ending job, and that we are sometimes part of the problem. But we work hard to be part of the solution. Why we work with partners! Through these partnerships IKEA focuses on improving children´s rights and promote responsible forestry, better cotton cultivation and reduction of CO2 emissions. Committments to India & Pakistan IKEA improves health and sanitation for children and provide them with a quality education. Forestry - IKEA does not accept wood that is illegally logged or that comes from intact natural forests. Crisis Leadership Stasi-style secret police a new book which claims the company is hostile to foreign employees and uses Stasi-style secret police methods to spy on its thousands of staff worldwide.

“There was an unwritten law for Ikea upper management: loyalty to Ingvar unto death.” In 1994, it was revealed that IKEA founder Ingvar Kamprad had joined the pro-Nazi New Swedish Movement The book has attracted enormous media attention in Sweden, with its unprecedented attack on a national institution by one of its former senior executives. The last time the furniture giant came in for such negative publicity was more than a decade ago when Mr Kamprad senior was unmasked as having been a wartime member of a Swedish pro-Nazi organisation.

In 1994, he managed to survive that stain on his reputation by publicly apologizing and writing personally to all of Ikea’s Jewish staff. Reputation Damaged???? Kamprad devotes two chapters to his time with the Pro-Nazi New Swedish Movement in his book, Leading By Design: The IKEA Story and called his affiliation with the organization the "greatest mistake of his life." IKEA carpets apparently made by Pakistani children 'As shocking and upsetting as it is to admit, our organization wandered off course. And for that I feel my personal, moral responsibility.' -The IKEA Foundation supports a project, run by UNICEF, promoting child rights in northern Indian -IKEA has a special code of conduct called The IKEA Way on Preventing Child Labor - If violations occur, IKEA terminates all business with the supplier. When damaging news breaks, IKEA has an admirable habit of coming clean. - Long-term goal to source all wood used in the IKEA range from forests certified as responsibly managed - IKEA forestry specialists audit the suppliers' and sub-suppliers´ wood supply from the factory all the way back to the forest of origin. IKEA Goes Renewable

- The long term direction is for all IKEA Group buildings to be supplied with renewable energy. - All IKEA Group company cars are "green." - IKEA wants to improve the IKEA Group's overall energy efficiency by 25 percent compared with 2005. The Never Ending list consists of all the improvements IKEA has made for people and the environment. IKEA Leadership & Management IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden Ingvar Kamprad Elmtaryd Agunnaryd Charismatic leader who used his Swedish culture and management style to punctuate the core values of IKEA. He stressed on quality of life rather than success, money and status symbols. Strategic Leader balanced profitability with a spirit of co-operation and simplicity in the company & never changed values. Team spirit emphasized! Low power distance at IKEA creates the psychological safety. Instrumental Leadership "At IKEA responsibilities of the individual should not end anywhere." Management Style “Waste of resources,” said Kamprad, “is a mortal sin at IKEA Kamprad had written, “The fear of making mistakes is the root of bureaucracy and the enemy of all evolution.” Ethical Leadership IKEA was named one of the 2009 World's Most Ethical Companies.
4 stage methodology for containing risks - It's no accident that the IKEA logo is blue and yellow. These are the colors of the Swedish flag. Complications? -Swedish preferred! Impact - Quality non-Swedish employees depart - Scandinavian managers unwilling to move abroad - Learning curve eats profits Corporate Culture - Sweden is a very social country where power distance is low - At IKEA, status differences are considered undesirable. “IKEA mässigt” - Employees are encouraged to find and enforce solutions by themselves. - IKEA leaders have to have a strong connection to Scandinavia - The ASA Theory highlights that homogenization can be a huge impediment to change - IKEA has not systematically searched out and developed international high potentials early enough. Leading through value Småland roots
The IKEA way of life "For me the thing most essential at IKEA is the employee." Ingvar
? - Assertiveness - Uncertainty Avoidance - Collectivism - Low Power Distance Origins Russian Bribery Scandal - Flat organization
- Decentralized decision-making process
- Autonomy of employees Organizational Environment - IKEA history
- Swedish Heritage - Minorities not promoted Ingvar
Agunnaryd - Maintain Swedish Connection
- IKEA stumbles with markets abroad
- Do not take local customs into consideration ASA THEORY
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