Run a Business with Love: Ingvar Kamprad on IKEA

Author: Tan Dizhou
Publisher:
Publish Date: 2005-05-01
Features: According to a new brand survey by Business Week, Swedish home furnishings retailer IKEA is one of the top 50 most recognized brands globally, ranking 43rd with a brand value of 56 billion Swedish kronor (approximately $7 billion). Ingvar Kamprad, the man who single-handedly built IKEA, was born in Elmtaryd, southern Sweden, in 1926. Today, Elmtaryd is the headquarters of IKEA.
At a very young age, Kamprad showed exceptional business interest and talent. At the age of five, he once negotiated prices with his friends using matchboxes. As he grew older, he sold watches and nylon socks. Before enrolling in business school at 17, he suddenly had the idea of starting his own company. However, according to Swedish law, minors were not allowed to register a company and needed a guardian’s permission. So, he cycled for several hours to the village of Agunnaryd to find his very supportive uncle. In the kitchen filled with the rich aroma of coffee, they filled out all the application forms and mailed them to the county government with a 10-krona stamp.
Kamprad was determined to dedicate his entire life to this company, which is why he named it IKEA. The name IKEA is a combination of four letters from personal and geographical names. "I" stands for Ingvar (his first name), "K" for Kamprad, and "E" and "A" are the initials of his birth farm, Elmtaryd, and his uncle’s residence, Agunnaryd.
Kamprad often said, "As long as we take action, things will improve. Our lives are work, endless work." He stated, "Diligent work has adorned IKEA’s life." IKEA is a typical family-owned business, where Kamprad holds absolute authority. He never wanted his company to go public and resist the control of shareholders. Kamprad believed the company had enough money and saw no need to go public and cause unnecessary trouble.
Now, at IKEA’s headquarters, you rarely see Kamprad’s presence—he is retired in a warmer place in Switzerland. As early as 1986, he handed over the company’s leadership to his children, dividing the company assets into three parts to ensure no single child could shake the company’s foundation. However, when major decisions are made, his descendants still seek his guidance.
Kamprad believed that the most important factor in leadership is "love"—applying emotional strength to employees as a team leader turns the entire enterprise into a family’s emotional bond. Embracing those with whom you work was one of Kamprad’s favorite initiatives in his life. As he approached leaving his position as IKEA’s "leader," he became even more convinced: embracing others could keep the company going.