H/T to @BlasMoros for sharing this.
IKEA founder Ingvar Kamprad passed away on Jan 27, 2018.
Ingvar founded IKEA in 1943 at age 17. He led the company from a small mail order business selling Bic pens into the world’s largest furniture retailer. In FY 2017, IKEA reported $40.2 billion in sales.
In 1976, Ingvar Kamprad clearly laid out the unique IKEA way in a company memo called “The Testament of a Furniture Dealer”. The memo is broken down into 9 parts:
- The product range - our identity
- The IKEA spirit - a strong and living reality
- Profit gives us resources
- Reaching good results with small means
- Simplicity is a virtue
- Doing it a different way
- Taking responsibility - a privilege
- Most things still remain to be done. A glorious future!
You should read and internalize the memo in its entirety. Below are 7 highlights:
Leadership“For those of you who bear any kind of leadership responsibility, it is crucially important to motivate and develop your co-workers. A team spirit is a fine thing, but it requires everybody in the team to be dedicated to their tasks. You, as the captain, make the decisions after consulting the team. There is no time for argument afterwards. Take a football team as your model!”
Profits gives us resources“The aim of our effort to build up financial resources is to reach a good result in the long term. You know what it takes to do that: we must offer the lowest prices, and we must combine them with good quality. If we charge too much, we will not be able to offer the lowest prices. If we charge too little, we will not be able to build up resources. A wonderful problem!”
Simplicity“Exaggerated planning is the most common cause of corporate death.”
Unconventional“Our protest against convention is not protest for its own sake: it is a deliberate expression of our constant search for development and improvement.”
Concentration“‘Lista’ is common term in Småland; it means ‘making do’, doing what you have to do with an absolute minimum of resources.”
Taking Responsibility“Our objectives require us to constantly practise making decisions and taking responsibility, to constantly overcome our fear of making mistakes. The fear of making mistakes is the root of bureaucracy and the enemy of development.”
Win-Wins“The finest victories are those without losers.”
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