As IKEA's spectacular growth and expansion continued, its unique management philosophy
and organizational approach developed and changed. At the core was the founder, Ingvar Kamprad.
Ingvar Kamprad
Ingvar Kamprad seemed driven by a vision larger than IKEA. "To create a better everyday
life for the majority of people," he said, "once and for all, we have decided to side with the many. We
know that in the future we may make a valuable contribution to the democratization process at home
and abroad." One of his executives said of him, "He focuses on the human aspect. What motivates
Ingvar is not profit alone but improving the quality of life of the people
Throughout IKEA, Kamprad was revered as a visionary. "He consistently turned problems
into opportunities and showed us how it is not dangerous to be different," said one executive. But
Kamprad also paid extraordinary attention to the details of his business, and could operate
simultaneously on multiple levels. "In a group of 600 items, he will ask about a particular product,
know its price, its cost and its source, and he will expect you to know it, too. He checks everything
and wants to do everything he can. He does not seem to believe in delegation. He is constantly
bypassing formal structures to talk directly with front-line managers, particularly the designers and
the purchasing group."
Kamprad's interest in front-line operations also extended to IKEA's staff. Whenever he
visited a store he tried to meet and shake hands with every employee, offering a few words of praise,
encouragement or advice as he did so. The simple—some said spartan—values of his native
Småland had stayed with Kamprad, and he still rose early, worked hard, lived simply, and took a
common-sense approach to management. One executive's account of Kamprad's recent visit to a
newly opened store in Hamburg captured much of the founder's management style:
During his rounds of the new store, he made points that covered 19 pages of
notes. They ranged from comments about the basic design—he felt the building had
far too many angles which added to construction costs—to the size of the price tags
and the placement of posters in the store.
He invited the employees to stay after work—and almost all did—so he
could thank them for their efforts, since most had transferred from a distant store
site. The dinner was typical IKEA style—the employees went first to the buffet, the
managers went next, and Ingvar Kamprad was among the last when only the
remnants were left. After dinner, Ingvar shook hands and talked with all 150
present, finally leaving the store well past midnight. That experience will keep the
motivation high for weeks. Each employee will go back home and tell his family and
his friends that Ingvar shook hands with him.
When the store manager arrived at 6:30 the next morning, he found that
Ingvar had been in the store for over an hour. Although he was staying in a modest
hotel, he remarked that it was probably priced 5 DM too high. That story will
probably circulate through the company as many others do—like the one about
Ingvar driving around town late at night checking hotel prices, till he found one
economical enough. It's all part of the aura and the legend that surrounds him.
IKEA's Management Philosophy and Practices
In many ways, IKEA developed as an extension of Kamprad and his view of life. "The true
IKEA spirit," he remarked, "is founded on our enthusiasm, on our constant will to renew, on our cost-
consciousness, on our willingness to assume responsibility and to help, on our humbleness before the
task, and on the simplicity in our behavior." Over the years a very distinct organization culture and
management style had emerged.
The company operated very informally. It was reflected in the neat but casual dress of the
employees (jeans and sweaters were the norm), in the relaxed office atmosphere with practically
everyone sitting in an open-plan office landscape, and in the familiar and personal way the
employees addressed each other—with the personal "du" rather than the more formal "sie" in
Germany, and in France, with "tu" rather than "vous." Kamprad noted, "A better everyday life means
getting away from status and conventions—being freer and more at ease as human beings." But a
senior executive had another view: "This environment actually puts pressure on management to
The company operated very informally. It was reflected in the neat but casual dress of the
employees (jeans and sweaters were the norm), in the relaxed office atmosphere with practically
everyone sitting in an open-plan office landscape, and in the familiar and personal way the
employees addressed each other—with the personal "du" rather than the more formal "sie" in
Germany, and in France, with "tu" rather than "vous." Kamprad noted, "A better everyday life means
getting away from status and conventions—being freer and more at ease as human beings." But a
senior executive had anot