Run a Business with Love: Ingvar Kamprad on IKEA

Author: Tan Dizhou
Publisher:
Publish Date: 2005-05-07
Features: According to a new brand survey by Business Week, IKEA, the Swedish home furnishings giant, 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 built IKEA from the ground up, was born in Elmtaryd, southern Sweden, in 1926. Today, Elmtaryd is the headquarters of IKEA.
At a very young age, Kamprad showed exceptional interest and talent in business. At the age of five, he once negotiated prices with friends over matchboxes. As he grew older, he sold watches and nylon socks. Before attending business school at 17, he suddenly had the idea of starting his own company. However, according to Swedish law, minors could not register a company without the permission of a guardian. 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-kronor stamp. Kamprad was determined to dedicate his entire life to this company, which is why he named it IKEA.
IKEA is an acronym formed from the initials of four names/locations: "I" stands for Ingvar (his first name), "K" for Kamprad, and "E" and "A" for Elmtaryd (his birth farm) and Agunnaryd (his uncle's residence), respectively.
Kamprad often said, "As long as we take action, things will improve. Our lives are work, endless work." He said, "Hard work has adorned IKEA's life." IKEA is a typical family-owned business, where everything is decided by Kamprad. He never wanted his company to go public and resist the control of shareholders. Kamprad believed that the company had enough money and didn't need to go public to cause 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, splitting the company assets into three parts to ensure that no child could shake the company's foundation. However, when major decisions are made, his descendants still listen to his advice.
Kamprad believed that the most important factor in leadership is "love," applying emotional strength to employees, and as a team leader, it would make the entire enterprise a family's emotional connection. Embracing those with whom you work was one of Kamprad's favorite initiatives in his life. When he was about to step down from the position of IKEA's "leader," he became even more convinced: embracing others could keep the company going.