1

Outline

Higher
Overview Ambition
leadership
(HAL)

How HAL
Food
Influences
for
Conclusion
Management Thought

999 Management s Next

Higher Ambition Leader

999 Management s Next

Higher Ambition Leader

999 Management s Next

Higher Ambition Leader

Wait a minute

Successful Leader
=
Higher Ambition Leader?

Leader & Leadership

Leader

Someone who
can influence
others and who
has managerial
authority

Leader
ship

The process of
leading a group
& influencing
that group to
achieve its
goals

10

Leader

(Original)

Synergy

Do Right Things

Effectiveness

Do things right

Promote Idea
Generation

Employee
Innovation

Provide
Structure

Inspire

Teamwork

Coordinate

Pursue & Create

Opportunities

Accomplishment

React to
Situation

Empowerment

Provide
Resources

Create Vision

11

Leadership is an Evolution

12

FILM
TIMELINE

13

1960s-70s

Early Leadership theories

Personalities

1970s-90s Contingency theories

21st
century

Transformational
leadership

NOW!
14

Transformational Leadership

Idealized Inspirational Intellectual Individualized

influence

motivation

stimulation consideration

15

Transformational
Leadership

2.0

16

CONCEPT MAP OF TRANSFORMATIONAL AND HAL

31
2

Build
robust
social capital
within
their
Create
long-term
economic
value
Produce
significant
benefits
for
the
wider
organization
community
17

18

Background
Founded in Sweden (1943)

301 stores operating in

37 countries
International home
products company
Fortune 100 Best
Companies to Work For
19

Background
Higher Ambition Leader in Ikea

Anders Dahlvig
Join in 1984
Became CEO in 1999

20

Background
Higher Ambition Leader in Ikea

Anders Dahlvig
US Foreign Policy Associations Global Social
Responsibility award in 2006
Oslo Business for Peace Award in 2009
21

Background

Anders Dahlvig in others eyes

Ikea and Mr. Dahlvig have an extraordinary influence in the
world. He has participated in building a business of a size and
character where all stakeholders are winners.
22

Background

Under leadership of Anders Dahlvig:

Growth from 7.3 to 21.5 billion Euros
Reduction in sales prices by 20%
Over 565 million visitors dropping in
to one of 296 stores in 36 countries
23

Evolution of leadership

Vision
Strategy

Culture

24

Personal
Leadership

Vision
Transformational Higher Ambition
Leadership
Leadership
What?

Mainly company
economic
performance

Integration of
economic and
social values

Whose?

Leader, followers

Companys beliefs,
employees,
community
ALL stakeholders

Envisioning!
25

IKEAs vision
Econ.
Value

Social
Value

To create a

better everyday life

for the many people

Customers

Employee
s
26

Communities

Vision
Customers

IKEA
Sustainability

Employee
s

Communities

27

Strategy Development
Transformational
Leadership

How?

Higher Ambition
Leadership

Strategies tied with Strategic Identity

vision thoroughly
for achievement
BEYOND
(Yukl 1994)
STRATEGIES!

28

Strategy Development
Transformational
Leader

Leader
developing a
challenging
vision

Understanding
market
conditions

29

Incorporating
vision into
strategies

Strategy Development
Transformational
Leader
Market Share
Competitors

Leader developing a
challenging vision

Understanding Market
conditions
30

Incorporating into
strategies

Strategy Development
Higher Ambition Leader

Forging
sustained vision

Comprehensive
view of
organizations
Competitive
Advantages

31

Strategic
identity

Strategy Development
Higher Ambition Leader
Identify competitive advantages with a

meaningful purpose that could underpin a

successful economic model

Capitalize strengths to create distinct values

Forging sustained vision

Comprehensive view of
organizations competitive
advantages

32

Strategic identity

Strategy Development
Higher Ambition Leader: IKEAs Competitive advantages
Family approach

Unique
characters

Staff
commitment

Passions and
capabilities of
people

Customer loyalty

Organizational
capabilities

Key Performance Indicators (KPIs)

33

Strategy Development
Defines companys vision and core values

Who the company is

Beliefs of the leaders, the employees, and the

company's strategy were aligned

Forging sustained vision

Comprehensive view of
organizations
competitive advantages

34

Strategic identity

Strategy Development
Companies
capabilities

Market

Passion of
People

Forging sustained vision

Who
the
company is

opportunities

Comprehensive view of
organizations competitive
advantages
35

Strategic identity

Strategy Development
Anders Dahlvig:
Company's reason for existence should be
to contribute to a better society."

Forging integrated vision

Comprehensive
view of
36
organizations competitive
advantages

Strategic identity

Strategy Development
Social initiatives:

Environment

Forging integrated vision

Comprehensive
view of
37
organizations competitive
advantages

Strategic identity

Strategy Development
Social initiatives

Children

38

Strategy Development
Social initiatives:

Extending CSR to Supply Chain :

39

Strategy Development
HIGH

Externally
perceived and
appreciated
values
LOW

Potential

True
Strategic identity

Aspirational

Hollow

HIGH

LOW

Internally rooted values

40

Outcome:
Strategic Identity

True
&
Authentic
Brand image
Long-term beneficial relationships and commitment
Among ALL stakeholders!
41

Cultural Development

How?

Transformational
Leadership

Higher Ambition
Leadership

Strong
Organizational
Culture

Building
Community of
Shared Purpose

Motivating and
Inspiring employees

Aligning with
employees and
society

Building
Community of
Diversity
42

Cultural Development

Transformational
Leadership

Higher Ambition
Leader

Organizational
Culture

1. Community
of
Shared Purpose

43

Cultural Development
Community
of
Shared Purpose
A diverse and highly qualified workforce helps

corporations maintain a competitive edge

Reasons of community of shared purpose

44

Cultural Development
IKEAs Shared Purpose
Core Values

Togetherness

Cost-consciousness

Simplicity

Creativity
45

Cultural Development
HOW?
Job Enrichment

Job Rotation
Job Sharing
Understand of ALL
employees
46
to the company as a WHOLE

Cultural Development
Examples:
Life Balance
Employees Benefits

47

Cultural Development
Key of Success:
Consistent focused attention

on generating shared values

Strong emotional

attachment

High level of mutual trust

and respect

48

Cultural Development
Why Diversity?

Law

To build
community of shared purpose:

Language

Barriers

People must feel comfortable

working directly with others

They need to be able to

appreciate colleagues from
different background
49

Values

Culture

Cultural Development
IKEAs Diverse Community
131,000 co-workers in 41
countries
Diversity transcends
races, gender and ethnic

IKEAs Motto: Dare to be YOU!

50

Cultural Development
IKEAs Diverse
Community

HOW?
Family approach

Identifying peoples needs

Optimizing peoples ambition and capabilities

51

Cultural Development
IKEAs Diverse
Community

Examples:
A full press diversity drive program

(2000)

Yearly evaluation ethnic composition

of work forces

Substantially increased the no. of

women and minorities in

management

47 % of the companys 75 top earners

are female
52

Outcome:

Staff turnover has decreased (76%36%)

Substantially lowered the company costs

in recruiting and training replacements

Totally revenue in the US increased from

1.2 billion to 1.4 billion

53

Personal Development
Transformational
Leadership

How?

Higher Ambition
Leadership

Leading with
Leading with Sisu
Idealized influence Finnish as guts
(Charisma) &
Collective
Inspiration
Leadership

Charisma is not a necessary character trait for effective

leadership.
Anders Dahlvig
54

Personal Development
Leading with Sisu

IKEA: Dare to be different

55

Personal Development
IKEA

Leading with Sisu

Encourage open
discussions and
questioning

Promote
employee
empowerment
Encourage staff
to rate managers
on different issues
56

Personal Development
Leading with Sisu
Higher Ambition Leader needs:

IKEA

To maintain a
constant focus

Keep price low while not damaging stakeholders

interests

To admit mistakes

UK experience is not what we would like it to be"

Admits the need to scale back the expansion plan
in 2009

To directly engage
with people at
different levels

Encourage sharing on open forum

Communication via the Intranet
57

How
influences
Management
A trip back to everything
58

Higher Ambition Leader

Higher Ambition Leaders abilities and qualities:

Culture
Strategy

Communication
Groups and teams
Organizational
structure
Motivation

Ability to build strong corporate culture

Strong analytical ability
Far-sighted
Active engagement with all levels
Attention to feedback
Ability to nurture mutual trust and cohesiveness within
the team
Simplification

Ability to motivate people by self-actualization

59

Culture

Ability to build strong corporate

culture

Characteristics of Strong Culture:

A community of shared purpose
Leaders values deeply and widely held

Benefits of Strong Culture:

Strong staff commitment
Higher working incentive
Distinctive company image

60

Culture

Ability to build strong corporate

culture

The value of some companies is just

to make money and you cannot talk
about broader issues there because
you would come across as odd.
Anders Dahlvig

61

Strategy

Strong analytical ability

Far-sighted

Set long-term and sustainable strategies

Strategic identity

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Strategy

Strong analytical ability

Far-sighted

... spend more time in the boardroom

looking at long-term issues and
build a sustainable business with a good
reputation.
We would do a better job for shareholders
if we were concentrating more on the
long term.
63

Anders Dahlvig

Communication

Active engagement with all levels

Attention to feedback

Different communication networks:

Chain

Medium

Wheel

Receiver

Message

Organic
Encoding

NOISE

Decoding

Direct and efficient

Reduction of noise

Message

Sender
64

Feedback

Communication

Active engagement with all levels

Attention to feedback

We encourage
people to move
around and interact,
walls segregate
people and keep
them apart.
Nick ODonnell

65

Groups and
teams

Ability to nurture mutual trust and cohesiveness

within the team

Do not focus on the professional knowledge,

but collaboration skills

Family approach

Mutual trust and respect

Cohesiveness

66

Groups and
teams

Ability to nurture mutual trust and cohesiveness

within the team

I'd say energy and being able to work

with other people were the most
important.
You can learn everything else.
Anders Dahlvig

67

Organizational
structure

Simplification

68

Organizational
structure

Simplification

Different types of structure:

Functional

Geographical

Market

Matrix

Depends on companys nature and

objectives

So far as communication is facilitated

69

Organizational
structure

Simplification

Highly functional with a global market strategy

Maintain centralized control

70

Motivation

Motivate people according to

their needs

71

Motivation

Ability to motivate people according to

their needs

IKEA pays in the mid-range of

salaries because we want people to

come to IKEA for other reasons than
money.
You want a decent salary but beyond
a certain level it does not matter any
more.
72

Anders Dahlvig

How

influences Management
Culture

Strategy

Motivation
Leadership

Groups and
Teams

Organizational
structure

Communication
73

Food for thought

1. Is successful leader equals Higher Ambition Leader?
2. Can Higher Ambition Leaders exist in every company?
3. Why are there so few Higher Ambition Leaders?

Food for thought

74

75

Is successful
leader equals
higher ambition
leader?

What Our Society Thinks:

Short term
Economic
Success

Successful
Leader

76

Case Example: IKEA

India

77

Fast-growing country of 1.2 billion people

51% restriction on foreign direct investment in 2010

Case Example: IKEA

India

78

Case Example: IKEA

India

79

Case Example: IKEA India

Keep 100%
Ownership

Aim for long term

and sustainable
return

Strategic Identity

High ambitious leader

Not Ready to
develop reliable
supply chains &
customers relations

Consider social value

with expansion in
India
80

Can
Higher Ambition Leader
exist in
every company?

81

Why cant

exist in every company

Companys
business &
product

Negative
Impact on
society

Never align
with a
positive
social
value
82

Why cant

exist in every company

Some company products and business make it a destiny

that a high ambitious leader can never exist.
83

Why are there

so few of these

higher ambition leaders?

84

Why are there so few of these

higher ambition leaders?

Focus on

short term
economic value

Focus on
shareholders
value
instead of other
stakeholders

85

Boards and
business school
focus on how to
earn high profit

Conclusion

86

999 Management s Next

Higher Ambition Leader

87

Higher Ambition Leader?

Focus on Short term economic value

SUSTAINABILITY?
Not focus on social value

88

Higher Ambition Leader?

Charity Talk at Hospital

89

Higher Ambition Leader?

MTRs Caring for life's journeys

90

Higher Ambition Leader?

NOT CONSISTENT

91

Higher Ambition Leader?

NOT CONSISTENT

92

A Higher Ambition Leader

Society
Employees
Vision

Sustainable & Consistent

93

A Higher Ambition Leader

Strategic
Identity

Building a
community of
shared
purpose

Leading with
Sisu
94

Management Lesson No. 1

Manage yourself first!
Be Visionary!
95

Focus on Long Term.

Be Sustainable.
96

YOU
Who Can Be Higher Ambition Leader?
97

Q & A Session

98