Run a Business with Love – Ingvar Kamprad Talks About IKEA

Author: Tan Dizhou Compiler
Publisher:
Publishing Time: 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 could not register a company without parental 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-kronor stamp. Kamprad was determined to dedicate his entire life to this company, hence the name 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 the farm where he was born (Elmtaryd) and the village where his uncle lived (Agunnaryd), respectively.
Kamprad often said, "As long as we take action, things will improve. Our life is 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 avoid the control of shareholders. Kamprad believed that 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 has retired to a warmer place in Switzerland. As early as 1986, he transferred the company's leadership to his children, splitting the company assets into three parts to ensure that no child could destabilize 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, making the entire enterprise 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 ensure the company's continued existence.