Past Present Future - Change Management at IKEA…

HERMAN is a stackable chair at an unbeatable price.

MAMMUT is an award-winning series designed to meet children’s needs.

POÄNG by Noboru Nakamura comes with a 25-year quality guarantee.

For the many…

OUR BUSINESS IDEA To offer a wide range of well- designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

OUR VISION To create a better everyday life for the many people. That includes our customers, co-workers and the people who produce our products.

A set of shared values

PAST….

CM @ IKEA – the reason to start

• 2000 – IKEA Supply Chain

– Scattered IT landscape

– Inconsistent working methods – product volumes +75% in 5 yrs

• 2001 - P3, Push & Pull Program

Scope:

- New working methods and IT Tools in IKEA Supply Chain - 12 projects, implemented by 2006

IKEA Supply Chain 2001: - 1 700 suppliers - 19 DC’s - 143 Stores - 40 000 co-workers

2005 2006 2007/08 2009/10 2011-08-31 2003/04

• P3 closed August last year • 10 projects implemented • 65.000 trained in new

working methods • CM model and workflow in place & governed • 7 000 managers trained in Change Management • Competence transfer

10 years later... IKEA Supply Chain 2011: - 1 200 suppliers - 43 DC’s - 285 Stores - 65 000 co-workers

2005 2006 2007/08 2009/10 2011-08-31 2003/04

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P1

• Roll-out, Communication and Learning

• Investigate the past - future picture and

experience of projects

• Designed “separate” concepts for: – roll- out – learning – communication

We started with “bricks”

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2005 2006 2007/08 2009/10 2011-08-31 2003/04

50

P1 P2

P3

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Implementing the bricks

• We launched and trained internally

– Communication package & homepage

– Rollout Preparation Binder and Implementation Handbook

– Blended learning concept and an e-learning tool

2005 2006 2007/08 2009/10 2011-08-31 2003/04

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P1 P2

P3

P4

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A new brick… change management

• The 4-step model was brought in

No of Managers

trained

5000

2500

2005 2006 2007/08 2009/10 2011-08-31 2003/04

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P1 P2

P3

P4 P5

P6

25 2500

5000

• Integrated • Goal!

– Change management to 5100 managers

– All projects to be prepared

• Package

The bricks becomes a house

2005 2006 2007/08 2009/10 2011-08-31 2003/04

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P1 P2

P3

P4 P5

P6

25 2500

5000

Change Management is spreading

• Dandelions concept

• Competence transfer started

• One CM workflow

P7

P8

CM workflow…

2005 2006 2007/08 2009/10 2011-08-31 2003/04

50

P1 P2

P3

P4 P5

P6

P7

P8

P9

P10

25 2500

5000

7500

• 10 projects delivered • CM model & workflow

in place & governed • 7 000 managers

trained in Change Management

• Competence transfer..

August 2011

2005 2006 2007/08 2009/10 2011-08-31 2003/04

50

P1 P2

P3

P4 P5

P6

P7

P8

P9

P10

25 2500

5000

7500

Reflection

Strong internal sponsorship

Challenging change ahead of us – high motivation

Sh-t it was complex… Forced to scale it - Standardize - Package - Distribute

Set it free – Dandelions concept

P3 was a reason

We were on a mission – underground movement

Trial and error – we built what we really needed

PRESENT… What happens

when you take a “winning” change management concept from one part of the organization to another?

• 2010 Launch Growing IKEA Together

• The initiatives will bring change: - across processes - across functions

• It had Change “written all over it”

Context…

My assumption

• CM is on the agenda! • A willingnes to apply CM • Executive Mgmt ARE the

sponsors • This is an opportunity!

The reality…

• Low if any awareness around CM

• Pre-conditions not in place (PM etc.)

• Sponsors, only sponsors on paper

• This was going to be a huge challenge!

What were the 1st steps?

1. Create awareness and buy-in around CM with; - Project managers (PM) - Program manager - Sponsors

2. With each PM assess change impact

3. Recomend what’s needed; resources, time, etc.

1. Create awareness and buy-in around CM; • “Crashcourse” in CM • Benchmark • Challenge rather than support

How did it go? - Project managers - Program manager - Sponsors

2. Assess change impact… • Create Today – tomorrow pictures

- Mindset/attitude - Knowledge/capability

• Define change impact on

all target groups

• Stakeholder mapping

• Change plans

• Anchor and create comittment

Status today: • Projects are in general up to

speed applying CM - 70% have started to implement - 30% still in design and planning phase

• Constant push to increase speed

• One out of five sponsors is acting as a sponsor

Reflection: - Be flexible & Choose your battles - Be clear on risks & consequences - It’s difficult to learn from other’s mistakes… - Working with change in this situation is a change process in itself! - Change as a capability is not in place outside of IKEA Supply Chain…

How to make change part of everyday leadership reaching 17.000 mgrs…

FUTURE…

The clogs

A sense of urgency...

• IKEA Leadership • Shaking up dust • Ownership? • IKEA Leadership capabilities

launched Dec 2010

A decision:

• Ownership – HR & Internal Communication

• Line ownership

Never close an open door!

Not exactly the decision we would have hoped for....

But hey, You don’t pass up an opportunity like this....

• Investigate where are we today? - Survey, interviews & Case studies • How should we act upon the decision? • The result of investigation...

I got An assignment:

The result ... Interviews: • ”CM is not a skill nor a training, it is part of everyday

leadership” • ”We need to make what’s already been done, available

to all of IKEA” Survey: • The self perception of HR/Internal Communicators:

believe they are quite ok/good in CM– the Business managers are less positive.

• Reactive behavior Business cases: • Trainings and tools highly appreciated and popular, • actions in leading change remained the same…just

another training, fun but still a training

Based on this, recommend the next steps...

Outline Recommendation:

To design A leadership transformation: • Three target groups • Three steps: - building knowledge - building capability - building trust

•Three year journey

Step 1, Knowledge:

• Three day training ”Enable change the IKEA way”: Day 1: Me in change & heart of change Day 2: My role in change Day 3: How do I bring it home

• ”Light workflow” + toolbox

• Build pre-requsites for line ownership

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Success factors - FUTURE…

• Competence network • Attitude shift • True Ownership in the line • Dandelions concept … all over again

• Passion, patience and pilot….

• A change competent IKEA when people go to work every day not wondering why change, but truly knowing that change happen all the time.

- Attityd förändring - Ledare blir tryggare - Support blir tryggare

www.IKEA.com

Most things remains to be done! INGVAR KAMPRAD Founder of IKEA.