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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?

Outline

Higher
Overview Ambition
leadership
(HAL)

How HAL
changes
Management

Food
for
Conclusion
Thought

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

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

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Management

Leadership

Administration

Innovation

Short-range
view

Long-term
vision

Efficiency

Effectiveness

How & When

What & Why

Controlling &
Problem
Solving

Motivating &
Inspiring

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FILM
TIMELINE

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Leadership is an Evolution

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1960s-70s

Early Leadership theories

Personalities

1970s-90s Contingency theories

21st
century

Transformational
leadership

NOW!
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CONCEPT MAP OF TRANSFORMATIONAL AND HAL

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What

Why
How

Create
long-term
economi
c value

Produce
significant
benefits
for the
wider
communit
y

Build robust
social capital
within their
organization

What

Corporate
social
responsibility

Why

How

Sustainability
Long-term
economic
value

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Background
Founded in Sweden (1943)

301 stores operating in

37 countries
International home
products company
Fortune 100 Best
Companies to Work For
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Background
Higher Ambition Leader in Ikea

Anders Dahlvig
Join in 1984
Became CEO in 1999

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

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.

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

Evolution of leadership

Vision
Strategy

Culture

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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

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Vision
Customers

IKEA
Sustainability

Employee
s

Communities

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IKEAs vision
Econ.
Value

Social
Value

To create a

better everyday life

for the many people

Customers

Employee
s
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Communities

Strategy Development
Transformational
Leadership

How?

Higher Ambition
Leadership

Strategies tied with Strategic Identity

vision thoroughly
for achievement
BEYOND
(Yukl 1994)
STRATEGIES!

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Strategy Development
Transformational
Leader

Leader
developing a
challenging
vision

Understanding
market
conditions

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Incorporating
vision into
strategies

Strategy Development
Transformational
Leader
Market Share
Competitors

Leader developing a
challenging vision

Understanding Market
conditions

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Refining and incorporating

into strategies

Strategy Development
Higher Ambition Leader

Forging
sustained vision

Comprehensive
view of
organizations
Competitive
Advantages

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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

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Strategic identity

Strategy Development
Higher Ambition Leader: IKEAs Competitive advantages
Family approach

Unique
characters

Staff
commitment

Passions and
capabilities of
people
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Customer loyalty

Organizational
capabilities

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

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Strategic identity

Strategy Development
Companies
capabilities

Market

Passion of
People

Forging sustained vision

Who
the
company is

opportunities

Comprehensive view of
organizations competitive
advantages
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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

Strategy Development
Social initiatives:

Community :

Forging integrated vision

Comprehensive view of
organizations competitive
advantages

Strategic identity

Strategy Development
HIGH

Externally
perceived and
appreciated
values
LOW

Potential

True
Strategic identity

Hollow

LOW

Aspirational

HIGH

Internally rooted values

Outcome:
Strategic Identity

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

Transformational
Leadership

Higher Ambition
Leader

Organizational
Culture

1. Community
of
Shared Purpose

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

corporations maintain a competitive edge

Not tangible benefits

Emphasis on altruistic values
Positive and diverse working environment

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

Identifying needs and

optimizing ambition and
capabilities
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Cultural Development
IKEAs Shared Purpose
=
Core Values
Togetherness

Cost-consciousness

Simplicity

Respect

Creativity

Flexibility

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Cultural Development
HOW?
Job Enrichment

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

Cultural Development
Examples:
Life Balance
Employees Benefits

Cultural Development
Most Importantly,
Consistent focused attention

on generating shared values

Strong emotional

attachment

High level of mutual trust

and respect

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Cultural Development
2. Community
of
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
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Values

Culture

Cultural Development
2. Community
of
Diversity

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

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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

IKEAs Motto: Dare to be YOU!

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Personal Development
Transformational
Leadership

How?

Higher Ambition
Leadership

Leading with Sisu

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

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Personal Development
Leading with Inspiration

Leading with Sisu

Anders Dahlvig:

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Charisma is not a
necessary character trait for
effective leadership

Personal Development
Leading with Sisu
Guts and courage
Doing things differently to gain real competitive edges

Move into Russia during Russian Crisis

Political and economic turmoil

Persistence to prevail in this type of environment

IKEA: Dare to be different

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Personal Development
Leading with Sisu
Higher Ambition Leader needs:
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

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Personal Development
Leading with Sisu

Transparent
management styles

At the same time,

Promote employee
empowerment

Collective

Encourage open
discussions and questioning
Encourage staff to rate
managers on different issues
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Leadership

Welcome input and

feedback from all levels

How HAL changes

Management

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

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

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

Strategy

Strong analytical ability

Far-sighted

Assess company and industrial situation

Set long-term and sustainable strategies

Strategic identity

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.
Anders Dahlvig

Communication

Active engagement with all levels

Attention to feedback

Different communication networks:

Medium

Chain

Messag
e

Wheel

Receiver

Organic
Encoding

NOISE

Decoding

Direct and efficient

Reduction of noise

Sender

Message
Feedba
ck

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

Groups and
teams

Ability to nurture mutual trust and cohesiveness

within the team

Do not focus on the professional knowledge,

but collaboration skills

Family-like
Mutual trust and respect
Cohesiveness

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.

Organizational
structure

Simplification

Different types of structure:

Functional

Geographical

Market

Matrix

Depends on companys nature and

objectives

So far as communication is facilitated

Organizational
structure

Simplification

Highly functional with a global market strategy

Maintain centralized control

Motivation

Motivate people according to

their needs

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.
Anders Dahlvig

Food for thought

Is successful
leader equals
higher ambition
leader?

What Our Society Thinks:

Short term
Economic
Success

Successful
Leader

Case Example: IKEA

India

Fast-growing country of 1.2 billion people

51% restriction on foreign direct investment in 2010

Case Example: IKEA

India

Case Example: IKEA

India

Case Example: IKEA India

Keep 100%
Ownership

Strategic Identity

Aim for long term

and sustainable
return

High ambitious leader

Not Ready to
develop reliable
supply chains &
customers relations

Consider social value

with expansion in
India

Can
Higher Ambition Leader
exist in
every company?

WHY CANT
COMPANY

EXIST IN EVERY

Never align
with a
positive
social value

Negative
Impact on
society

Company
s business
& product

Why cant

exist in every company

Some company products and business make it a destiny

that a high ambitious leader can never exist.

Why are there

so few of these

higher ambition leaders?

Why are there so few of these

higher ambition leaders?

Focus on

short term
economic value

Focus on
shareholders
value
instead of other
stakeholders

Boards and
business school
focus on how to
earn high profit

Conclusion

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999 Management s Next

Higher Ambition Leader

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Higher Ambition Leader?

Focus on Short term economic value

Vision
SUSTAINABILITY?

Not focus on social value

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Higher Ambition Leader?

Charity Talk at Hospital

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Higher Ambition Leader?

NOT CONSISTENT

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Higher Ambition Leader?

MTRs Caring for life's journeys

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Higher Ambition Leader?

NOT CONSISTENT

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A Higher Ambition Leader

Society

Employees
Vision

Sustainable & Consistent

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A Higher Ambition Leader

Strategic
Identity

Building a
community of
shared
purpose

Leading with
Sisu
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Management Lesson No. 1

Manage yourself first!
Be Visionary!
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Study

Project Meeting

Intern

Lesson

Focus on Long Term.

Be Sustainable.
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YOU
Who Can Be Higher Ambition Leader?
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