Ingvar Kamprad is the founder and chairman of IKEA. He was born in 1926 in Småland, a province situated in the south of Sweden. As a young boy, he was involved in different business projects such as buying matches in a bulk from Stockholm, selling them individually at a low price in his hometown, but still making a good profit . when he was 17, his fahter gave him some money,for his good grades,money he used to establish his own business – IKEA. The “IK” in IKEA comes from the founder’s name, whereas the E and the A mean “Elmtaryd” and “Agunnaryd” are the farm and the village were Kamprad grew up.
Today Kamprad is a billionaire and the richest person in Sweden. However, what makes him stand out is his practice of MODESTY. He drives a 13 year old Volvo, flies economy class, avoids luxury hotels and frequents cheap restaurants. He writes on both sides of a paper and he doesn’t have his own private office. As for flying economy class, which he encourages all his employees to do, he says “I could regularly travel first class, but having money in abundance doesn’t seem like a good reason to waste it.” “Why should I choose first class? To be offered a glass of champagne from the air hostess? If it helped me arrive at my destination more quickly, then maybe.”
In a survey, 800 Swedish managers were asked which Swedish person they would prefer as their leader; 63% of them chose Ingvar Kamprad. As he is so successful and different, we are going to take a closer look at his leadership style using a few of the Globe’s leadership dimensions.
ASSERTIVENESS - Kamprad prefers harmony, loyalty and solidarity with his co-workers. He believes that they are IKEA’s most important resource and therefore that it is vital that they have fun and enjoy their work.
FUTURE ORIENTATION - Kamprad is known for being tight with money. He drives a 13 year old Volvo and whenever he buys something, even a post card, he asks himself if IKEA and it’s customers can afford it. Because everything IKEA earn, they need as a reserve for the future when IKEA will expand and enter new markets. Also, IKEA has not been listed on the stock exchange because Kamprad doesn’t want the short-term thinking that might bring.
HUMAN ORIENTATION - There is not a lot of rewarding for just being fair or generous since that is what he simply expects of you.
GENDER EGALITARIANISM - for Swedes any sort of egalitarianism is very important. Had he not found this question important the chance is very little that he would have had the success that he has had in Sweden.
POWER DISTANCE- low. Kamprad encourages and listens to his co-workers, he doesn’t have an own private office and he flies economy class as the rest of his employees.
UNCERTAINTY AVOIDANCE-high. As mentioned earlier, Kamprad thinks through everything he does and buys and asks himself if he, IKEA and its customers can afford it.
So why is he successful as a leader then? Kamprad himself thinks that in order to be a good leader, one has to be a good example. Some of IKEA’s values are egalitarianism, simplicity, humbleness, hard work and no waste. Those values are also the values of Ingvar Kamprad. He doesn’t only say it, he means it and proves it. He expect his co-workers to work hard and have a strong character, but in order to inspire them he must show them it is possible. In other words, he gives a good example. Also, reading about Kamprad one understands that he really cares about IKEA, IKEA’s future, customers and co-workers. He is no hypocrite and doesn’t do it for the money. All this makes him much more believable and trustworthy as a leader.
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